High occupancy does not always mean high profit. Many hotels operate close to full capacity while still losing a significant share of their potential revenue.
The issue is usually not a lack of demand, but mistakes in pricing, distribution channels, and overall revenue management strategy. Let’s look at three key problems hotels in Vietnam’s resort markets commonly face.
Selling Rooms Too Early at Low Rates
One of the most common mistakes is releasing low rates too early. When demand surges, the hotel can no longer increase prices because rooms have already been sold in advance at minimum rates.
levels. This issue is especially noticeable in Phu Quoc and Da Nang during peak seasons — New Year holidays, Tet, and major international events.
A strong strategy requires dynamic pricing: rates should increase as the booking date approaches and demand rises, rather than being fixed at low levels in advance just to secure volume.
Overdependence on OTAs
Many hotels rely heavily on online travel agencies such as Booking.com, Agoda, and Expedia. OTA commissions can reach 15–20% per booking, significantly reducing margins even at full occupancy.
High occupancy without effective revenue management is an illusion of success. The hotel may be fully booked, but it is only earning a fraction of its potential.
A proper sales strategy includes a balanced mix of OTA distribution, direct bookings through the hotel’s website, and corporate contracts. Direct bookings are not only more cost-effective but also allow hotels to build long-term relationships with guests and manage loyalty.
For hotels in Vietnam, it is especially important to develop direct channels targeting Russian, Chinese, and Korean markets — the largest and most impactful tourist segments for resort properties in the region.
