Tutorial E3

Luxury Hostel in Ho Chi Minh City Team Members (from left to right): Sneha Chaudhury, Chanisa Pholwut, Khushboo Singhvi & Laphon Hatthaka

Luxury hostels are fast becoming a phenomenon that are taking the tourism and hospitality industry by storm and somewhat by surprise. Based on the successful business models for luxury hostels and capsule hotels in Japan and 5footway.inn and Cube in Singapore, the team analysed the possibilities of setting up similar luxury hostels or boutique hotels in Ho Chi Minh City, Vietnam. The Study has been conducted for The Hind Group; The business house behind the successful “Naumi” Hotels in Singapore. The basic differentiation between a hotel and a luxury hostel maybe defined as hostels providing an experience beyond just a frugal accommodation. The project proposes development strategies for luxury hostels in Ho Chi Minh City. In doing so it also defines the qualities that make the quintessential international luxury hostel, identifies the demand and supply aspects of tourism in Ho Chi Minh City, identifies the potential market, outlines the rules and regulations of conducting business in the city, undertakes a SWOT analysis from the viewpoint of developing luxury hostels in Ho Chi Minh City and reviews the existing potential competition in the market. Additionally, the project also attempts to understand the perceptions of Asian travellers towards ‘Luxury Hostels’ since most studies are currently accident centric.