Preface

The Vietnam Tourism Association reports a surge in tourism demand post-Covid-

19, with many seeking quiet, safe, and outdoor activities. Homestays, often found in
rural, mountainous, sea, or island areas, offer fresh air, beautiful nature, and
privacy. As Vietnam's tourism recovers, homestay business is a promising start-up
project. However, entrepreneurs need a detailed, innovative business plan to
succeed. Therefore, our team chose the topic "Homestay business startup project" as
a topic of discussion and research.
Table of contents

Preface 1
1. Executive summary 3
2. Company description 3
2.1. Leadership and staff (On 1 basis).......................................................................4
3. Homestay Services 5
4. Market and competitor research 5
4.1. Market segmentation and identification of target markets..............................5
4.2. Competitor research............................................................................................6
5. Sales and marketing strategy 7
5.1. Distribution policy...............................................................................................7
5.2. Promotion Policy................................................................................................. 7
6. Financial plan and projections. 8
6.1. Cost....................................................................................................................... 8
6.2. Revenue................................................................................................................ 9
6.3. Profit...................................................................................................................10
6.4. Payback period..................................................................................................10
Conclusion 11
 1. Executive summary
New types of homestay accommodation have become popular in Vietnam in the
past few years. According to AirDNA's latest report, the homestay business in
Vietnam generated revenue of about 130 million USD in 2020 and continues to
grow at a high rate.

Therefore, homestay business is becoming a potential field for people with little
capital, locals and working people to make profits.

Service: Homestay rental

Sublease whole houses in suburban and suburban areas of Hanoi (Hoang Mai, Ha
Dong, Soc Son), renovate and decorate into Homestay for rent. Each room will be
decorated in its own style to make a difference. Tenants will be checked-in/check-
out online to create privacy and security.

Vision

"Become a favorite resort for young people"

Escape Homestay wishes to become the first place for young people when it comes
to accommodation and resort services. Therefore, we will try to create the best
quality of service, bring an enjoyable and comfortable experience to customers.

Mission

“Attentive reception, giving customers a feeling of home.”

2. Company description
• Company name: Escape Homestay Company Limited

• Type of business: 1-member limited liability company

• Business type: Service business

• Slogan: "Hide" to a peaceful place

• Business location: Hanoi City

There are 3 facilities located:

+ Hoang Mai District

+ Ha Dong District

+ Soc Son district (area near Dong Doong lake tourist spot)

2.1. Leadership and staff (On 1 basis)

Administer:

• Planning, orientation, construction and development of Homestay

• Manage, coordinate, solve daily work

• Daily income and expenditure tracking

• This is a position that requires dedication, dedication, understanding what

Homestay needs and how to do it.

• Their task is to research strategies for improving service quality, building

organizations, and operating employees effectively to achieve revenue goals.
Besides, it is necessary to understand the knowledge and professional expertise of
each department and employee. From there, offer appropriate solutions and
organizational methods.

Sanitation staff:

• Undertake the task of cleaning the room after the tenant check-out.
• The job of the cleaning staff must ensure that the room is clean and tidy, check the
operation of the equipment in the room to ensure that tenants do not encounter any
inconvenience

Administrative staff:

• Perform tasks such as marketing, online consulting, check-in, online check-out

and collecting real money

Protect

• Parking, ensuring security for tenants.

• Security guards must understand the nature of the work and characteristics of the
Homestay to be ready to improvise with any eventualities that may occur.

3. Homestay Services
Unique decoration style: Each house and each room in the house will be decorated
in a unique style, making a difference and unique. Escape Homestay has décor
styles based on different themes such as Vietnamese culture, modern style, vintage
style, etc.

Online check-in/check-out service: Customers will be provided with a code or

detailed instructions to self-check-in and check-out without having to contact the
host directly. This not only creates convenience for customers but also enhances
privacy and security.

Customer support: Escape Homestay has a customer support team that is happy to
answer any questions and assist customers when needed. Customer support can be
available 24/7 and can be communicated via multiple channels such as phone,
email, or online messages.

Amenities and services: Rooms are fully equipped with amenities such as free Wi-
Fi, kitchenette, air conditioning, etc.

4. Market and competitor research

4.1. Market segmentation and identification of target markets
- Homestay escape targets 3 main customer groups:
- Young people at the end of Gen Y, Gen Z.

- Office workers

- Foreign visitors

These 3 groups of subjects have in common that they like novelty, ensuring privacy
to comfortably relax and play but only need to spend low cost, affordable money.

Specific portraits:

• Age: 18-25 years old.

• Gender: Both male and female

• Income: 3-10 million VND

• Occupation: Student, Office Worker, Foreign Tourist

• Hobbies: Enjoy exploring, experiencing local life, meeting friends, participating in

recreational activities, prioritizing privacy.

4.2. Competitor research

• Hygge Quảng An

+ Strengths:

- Located near famous places

- Unique wooden house design

- Do not clash with other homestays

- Attentive service

- Airport shuttle bus available (surcharge)

+ Weaknesses:

- High price: from 1tr6 - 2 million / night

- Near crowded areas, there may be noise, affecting the privacy of customers

• An Family

+ Strengths:
- Geographical location: located in the center of Hanoi city

- Space design: Everything is simple, simple, rustic but still very poetic and
sophisticated. Ancient space like returning to old Hanoi

- Number of rooms: there are many types of rooms such as double room, room 3,
room 4 people, room 5 people and room 6 people

- Service: Clean and airy toilet, motorbike rental service at cheap price

+ Weaknesses:

- Because it is a location in the center of the capital, the price of An Family is hardly
expensive, ranging from 500k - 1190k

- Due to the common living space, many visitors consider the space noisy and not
private.

- Bathroom shared other bedroom.

5. Sales and marketing strategy

5.1. Distribution policy
Geographical location: Homestay locations are located in suburban areas and close
to the suburbs of Hanoi (Hoang Mai, Ha Dong, Soc Son). These are areas with quiet
and airy space, suitable for customers who want to find a place to relax after
stressful working days.

Online distribution channels: Homestay evasion uses online booking sites like
Airbnb, Booking.com, Agoda, etc. to reach out to more customers. Especially, for
foreign visitors, the use of these online distribution channels will be very effective.

Offsite distribution channel: Homestay can consider cooperating with partners

such as travel agencies, universities, or companies with many office employees to
introduce the services of the Business to their customers.

5.2. Promotion Policy

Online advertising: Homestay will use online media channels such as Facebook,
Instagram, Google Adwords, etc. and especially Tiktok to promote its project. The
 team will focus on creating engaging advertising campaigns, using high-quality
images and compelling content to attract customers' attention.

Social media should emphasize the "home", "peace" and "freedom" elements of
being in hiding. and Marking Homestay on Google maps will make it easy for
visitors to locate and easy to find their way to

Special promotions: Escape Homestay has special promotions such as discounts on

first bookings, discounts on long-term bookings, or discounts for customers who
refer you to others.

Build a rating and feedback system: Homestay encourages customers to leave

reviews and feedback after they experience the service at Homestay. This not only
helps improve service but also creates trust for customers.

6. Financial plan and projections.

6.1. Cost
+ Capital expenditure

Capital expenditure Unit Price Quantity Total Amount

Business registration
costs (license tax, 5.000.000 1 5.000.000
related items)

Deposit for rent 3

whole houses with 6- 60.000.000 3 180.000.000
month contract

Risk provision costs 10.000.000 3 30.000.000

Furniture, decoration 20.000.000 3 60.000.000

Total capital 275.000.000

+ Monthly operating costs

 Fixed cost/ month Unit Price Quantity Total Amount

Renting a 3-storey
apartment with 4 10.000.000 3 30.000.000
bedrooms

Staff’s salary 8.000.000 12 96.000.000

The cost incurred 1.000.000 1.000.000

9% of the
Marketing 26.157.600 totak 26.157.600
revenue

Total 168.157.600

Variable costs Unit Price Quantity Total Amount

Electricity, water,
5.000.000 3 15.000.000
internet

Total 183.157.600

6.2. Revenue
Criteria for The The
The
calculating number of revenue The revenue of each
Price number of
Daily rental days in a of one room per month
rooms
revenue month room

Weekdays 10 450.000 4.500.000 12 54.000.000

Weekend 6 550.000 3.520.000 12 42.240.000

Total 16 8.020.000 12 96.240.000

Alculate Hours Days The The The revenue of each

hourly rental number number of room per month
revenue of days in rooms
 a month

Hourly rental 12 5 150.000 12 108.000.000

Total revenue 204.240.000

6.3. Profit
Evaluate performance indicators Amount

The total revenue for year 1 2.450.880.000

The total cost for year 1 2.379.579.200

The total EBT for year 1 71.300.800

Income tax 14.260.160

Net Income 57.040.640

6.4. Payback period

Payback period: 13 months

Starting from May 13: Profitable business

 Conclusion
Recognizing the development potential of the industry and the increasing demand
for accommodation, the team proposed a Homestay startup project. However, in the
near future, there will be fiercer competition as other competitors realize the
potential and enter the industry. Escape Homestay with differences in decoration
and service style, along with focusing on students, office workers and foreign guests
will create a unique position for themselves in the market.

With a strong growth strategy, including differentiating products, building

appropriate pricing strategies, leveraging efficient distribution channels and
focusing on customer care, "Escape Homestay" has the potential to become a
leading homestay brand in Hanoi.