Airbnb and other accommodation-sharing services are booming in Vietnam and many homeowners are cashing in on them.
There were 40,000 active Airbnb listings in Vietnam as of January this year compared to only 1,000 in 2015, according to the Homesharing Vietnam – Insights Report released by Outbox Consulting, a tourism development consulting firm.
There has been explosive growth in major cities such as HCMC, Hanoi and Da Nang where the number of international visitors arrivals has surged in recent years.
HCMC reported annual growth of 97 percent in terms of the number of accommodations available for rent on Airbnb, a U.S. online marketplace and hospitality services brokerage that connects tourists with hosts.
Hanoi and Da Nang have seen 112 percent and 111 percent growth. Famous tourist destinations such as Ha Long Bay and Sa Pa, which are in the midst of a tourism boom, too have embraced the idea.
More than 18,000 Vietnamese landlords have listed on Airbnb, and those with multiple listings make up 69 percent of the number. Nearly 50 percent offer private rooms while 47 percent offer the entire home.
The average rental is around $36 per room per night in Hanoi and $44 in HCMC.
Home sharing is also becoming increasingly common.
According to Outbox Consulting, HCMC-based homeowners earn VND11.5 million ($490) per month during the peak season from November to January, while the monthly income of a host in Hanoi is around VND6.7 million ($290).
During the off-peak travel season in May-June Airbnb hosts earned an average of VND8.3 million ($360) in HCMC and VND5.2 million ($220) in Hanoi.
The increasing number of visitors to Vietnam has created a momentum for this business, according to experts.
Vietnam is enjoying a tourism boom with a record 15.5 million foreign arrivals in 2018, an increase of 20 percent over the previous year. It is on track to meet its target of 18 million this year, according to the General Statistics Office.
The report also revealed that international tourists accounted for 84 percent of Airbnb guests in HCMC and Hanoi.
The apartment rental market has changed dramatically in recent years with more and more owners moving from traditional leasing to listing on Airbnb or other similar websites, Tran Anh Khoa, a real estate agent in HCMC, said.
The Outbox Consulting report said many people have reportedly bought apartments in cities like Hanoi and HCMC to rent out rooms for short-term stays, which generate 20-50 percent higher incomes than long-term contracts.
Airbnb and other similar services are favored since they offer cheaper rates compared to a hotel room or a serviced apartment, Stephen Wyatt, country head of real estate consultant Jones Lang LaSalle Vietnam, said.