The hotel market size in Vietnam is estimated to grow by USD 2.12 billion by 2026, growing at a CAGR of 14.43 percent. The hotel market in Vietnam is fragmented owing to the presence of many global and regional companies.
A report by Technavio has indicated that the growing affordability and rising disposable income are some of the key factors driving the market growth.
Vietnam's impressive economic growth is credited to a significant increase in per capita disposable income, despite the negative impacts of the pandemic in 2020. Vietnam has maintained its economic growth rate. The economy is stable, continuing to consolidate this growth rate.
Efforts to gradually reduce income inequality, as evidenced by the decline in the GINI coefficient, promise to improve the spending power of different social classes. Moreover, the growing number of people is boosting individual purchasing power and contributing to economic prosperity in Vietnam. The combination of these factors underlines Vietnam's dynamic growth and prospects for the future. Hence, these factors are expected to drive the market growth during the forecast period.
By Type, the market is classified into chain hotels and independent hotels. The hotel market share growth in Vietnam by the chain hotels segment will be significant during the forecast period. The hotel chain segment's market share growth in Vietnam will be significant during the forecast period. The steady growth of the travel and tourism industry and high investment in four and five-star hotels are due to the increasing resort trend in the country. These factors are expected to drive the segment growth during the forecast period.
