Room occupancy is 70%, tourism real estate project is working well

Ms. Le Mai Khanh - Vice Chairman of Vietnam Hotel Association 

"Room occupancy is 70%, tourism real estate project is working well", that is the judgment of Ms. Le Mai Khanh - Vice Chairman of Vietnam Hotel Association when asked about the indicators that the tourism real estate project working well and bringing profits.

The stability of accommodation depends on room capacity

With tourist accommodation facilities such as hotels, resorts, the rate of room capacity at any rate will ensure the project works well, profitable?

With tourist accommodation establishments, room occupancy must be over 50% to ensure the stable operation of the project. Of course, the specific level depends on the room price bracket that tourist accommodation establishments sell. With room occupancy rates above 70%, the property operates well and is relatively profitable.

From the reality of the accommodation market, in your opinion, which factors should the investor integrate with the tourism real estate project to achieve a stable room capacity of the room?

Projects need many factors, but first there must be a planning orientation. Currently, the tourism industry has a plan for tourism development in each period. Based on the approved plan, the orientation is given to investors.

This practice shows that, in order for the tourism real estate project to have an effective room capacity of a stable level or higher, the investor needs to be aware of the issues related to the planning and construction of the locality, avoid investing under the "crowd" trend.
Crowd-led investments lead to many potential areas being overlooked, while oversupply occurs in some properties. This inevitably leads to reduced room capacity.

Next, the investor needs specific and detailed planning for each item. Must calculate that a service area will consist of many items of utilities to meet the needs of entertainment, relaxation and enjoyment. Only then can the project stimulate visitors to use the service for a long time, welcoming them back many times...

Another important feature is that investors carefully research their customer market to be able to synchronize the construction planning, service development according to the needs and characteristics of the target customers.

Proactive guest source makes a big difference

How can investors be strong in travel and proactive source of guests will make a big difference to tourism real estate projects, ma'am?

Very few investors are able to participate in both the hotel and travel sectors. The international travel industry requires strict conditions and manpower, although it requires a long-term preparation roadmap. Therefore, when operating a tourist accommodation business, the investor and the operators often associate with many travel companies to get customers.

In Vietnam, at the present, the investor has not much strength in travel. For example, Crystal Bay Group, thanks to the strength of travel, they are proactive source of customers for themselves. At the same time, this group has flexible policies from time to time so that the room capacity can be maintained stably.

The investors both provide travel services and exploit accommodation services and other ancillary services with the advantage of customer care right from the approach, detailed advice with high quality. They will have preferential policies to attract visitors back according to specific strategies.

Certainly, the cost of all-in service of the investors with the travel strength also has its own advantages. This is a long-term feature when they can only increase the customer file each year and not expand. Therefore, the resort always has a stable number of customers. Meanwhile, the associated businesses will not guarantee the visitor resources or fully exploit the services to serve tourists.

Currently, the number of tourism real estate to the market is very large and is an attractive leading investment channel. In your opinion, what is the potential of chamber room capacity in the investor's final decision?

The analysis of room capacity is one of the important factors for investors to consider. Room occupancy rate will be a measure to help see the operational situation of that project. When guests stay at the resort, they also use many other ancillary services... These are the advantages of the smokeless industry.

Currently, the tourism industry has a plan for tourism development in each period. From there, each locality must have a plan in separate areas and give directions to major investors. For secondary investors, the region's development strategy also needs to be carefully considered before making a final decision.

Thank you very much for your helpful sharing!

According to Anh Duong