Perspective · Tourism industry

Every homestay is the same: the identity challenge in the tourism sector

When guests can't see the difference, they only ask one question: how much?

Quick summary

Most homestays fail to make an impression because they copy the same set of images, language, and spatial concepts. When no one can see the differences, competition boils down to price. A unique identity, built from the specifics of the location and real people, is the only way to escape that cycle.

Open any booking tab and look through the first ten homestays. The photos all have warm golden light, greenery framing the corners, dark wood rooms, infinity pools, and similar captions: "peaceful space," "experience close to nature," "a tranquil haven in the city." There is nothing wrong with those images. The problem is that when everyone says the same thing, no one gets heard.

Why does the entire sector look the same

The mechanism is very simple. A successful homestay is observed and copied by others. If a moody-style photo set performs well, the concept of "bungalow among tea hills" gets replicated by hundreds of other owners. No one intends to become invisible. But the result of collective copying is collective invisibility.

This is not a subjective observation. Research from the Vietnam Tourism Development Institute shows that most homestays fail in the early stages due to a lack of clear positioning and copying successful models without adapting them to the location and target audience. Without positioning, the only thing left to compete on is price.

15 to 25%The average commission rate that accommodations pay to OTAs (online booking platforms) for each booking. Source: GoHost.vn, analysis of OTA distribution costs in the Vietnamese market 2024.

That number becomes more painful when viewed from another perspective: homestay owners who are not dependent on OTAs have built something that makes customers seek them out directly. To be sought out directly, you must be memorable. To be memorable, you must be truly different.

Identity is not decoration, but the answer

Many homestay owners think identity is about interior design or brand colors. In reality, it answers a more fundamental question: what are customers looking for here that they cannot find elsewhere?

This question does not have a universal answer. A homestay in a H'Mong village in Ha Giang should not be positioned like a beachfront villa in Phu Quoc. A place for business travelers should not communicate like a resort for young families. Identity starts from the reality of the location, the owner, and the group of guests that truly fit both.

A brand is not a logo. A brand is the perception in the hearts of customers about you.

Marty Neumeier, The Brand Gap

This perception is formed from dozens of touchpoints: the way captions describe the room, the tone of response messages, the scent in the room, how staff greet guests, the card left on the pillow, the booking confirmation page. No single touchpoint defines a brand on its own, but when they all speak the same language, the experience becomes memorable and significant.

Which touchpoints are being overlooked

Most homestays invest in a single touchpoint: photos. Photos are important, but only enough to draw people in. What keeps them engaged and leads to bookings is the consistency in storytelling. And what makes them return and recommend to others is the actual experience matching the images they have seen.

50 millisecondsThe time it takes for the brain to form the first visual impression of an interface or space. Source: Lindgaard et al., Behaviour and Information Technology, 2006.

That impression is formed before anyone reads a word about you. However, that impression can easily shatter if the actual experience does not match. This is why homestays with beautiful photos but receive one-star reviews do so not because the photos are too beautiful, but because they used images to promise something they do not actually have.

A consistent identity addresses this issue not by lowering expectations, but by setting the right expectations for the right audience. Customers looking for the cheapest place in the area are not the ones you need to attract. Customers seeking a unique experience that only you offer are the ones who will pay the right price and leave good reviews.

Local storytelling: a resource no one can compete with

Every location has something that cannot be found anywhere else. The stream flowing through that garden. The third-generation craftsman living two kilometers away. The blooming season in a month that guests do not know. The traditional rice variety grown in the field right in front. These details cannot be replicated because they belong to one place and one place only.

Strong brands in the tourism sector are often built on those seemingly small details. It’s not about the list of amenities or the number of rooms, but about the stories guests will share when they return home. "The place I stayed had someone take the whole family to the fields at dawn to pick vegetables for breakfast" is a story. "The place I stayed had a beautiful pool" is not.

38%The higher price that customers are willing to pay for a brand perceived as "meaningful and distinctly different" compared to the average group in the same industry. Source: Kantar BrandZ Global Study.

From positioning to systems: when you need external expertise

Successful homestay owners often know what they have. The challenge is not a lack of stories, but not knowing how to translate those stories into a consistent language across all channels. The name, slogan, image set, descriptive tone, response style, and even the presentation of the breakfast menu must all convey the same message about who you are and what guests can expect.

This is why positioning needs to be done before design, not in parallel or afterward. When you do not know who you are to your customers, every decision about colors, fonts, and cover images becomes a personal opinion rather than a strategic choice. And when changes are made, everything must be redone from scratch.

21.2 millionInternational visitor arrivals to Vietnam in 2025 are expected to increase by about 13 to 20% compared to the previous year. The target for 2026 is 25 million arrivals. Source: Vietnam National Administration of Tourism.

The market is growing. But a large market does not automatically mean you will benefit. It only means that competition will be greater, customers will have more choices, and what sets you apart must be clearer. This is the time to build a true identity, not to wait.

Note on the data: The figure of 38% from Kantar BrandZ is a global aggregate across various sectors and countries. The actual differences in each segment of homestays in Vietnam may vary depending on location, type, and local competition. This data is used to illustrate a principle, not to predict specific outcomes.

References

Marty Neumeier, The Brand Gap. Byron Sharp, How Brands Grow (Ehrenberg-Bass Institute). Kantar BrandZ Global Study. Market data: Vietnam National Administration of Tourism, Institute for Tourism Development Research (ITDR), HotelJob.vn, GoHost.vn. International context: EHL Hospitality Insights, Mews Systems.

Frequently asked questions

I have beautiful photos and good reviews, why do guests still only ask about the price?

Beautiful photos and good reviews are necessary conditions, but not sufficient. When all competitors have beautiful photos and good reviews, guests have nothing to compare except price. Brand identity answers a different question: 'Why this place, and not that one?' When there is a clear answer to that question, the conversation about price changes completely.

Does building a unique identity mean redesigning the entire space?

Not necessarily. Identity starts with positioning: who you serve, what they come here to find, and what is unique about this location. From that positioning comes the language, name, imagery, and consistent storytelling across all channels. In many cases, the space remains the same; simply changing the presentation and storytelling can create a clear distinction.

Do small homestays need a brand, or just rely on OTAs?

OTAs bring guests in for the first time, but the brand makes them return and tell others. Relying entirely on OTAs means a commission of 15 to 25% directly cuts into profits, and everything about the guests belongs to the platform. A clear brand is essential for building direct booking channels, accumulating loyal customers, and avoiding price slashing during low seasons.

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