One of the most business reality television programs in the world is Shark Tank, the TV program that see’s budding entrepreneurs present their ideas to the “Sharks” in the tank -- five titans of industry who made their own dreams a reality and turned their ideas into lucrative empires. The contestants try to convince any one of the sharks to invest money in their idea. When more than one of the sharks decides that they want a piece of the action, a bidding war can erupt, driving up the price of the investment.
In one of the most recent episodes of Shark Tank Vietnam, Steven Nguyen, the CEO of Luxstay, which provides temporary homestays and experiences to travelers, convinced three of the ‘sharks” to invest $2 million USD, each, in his company, raising a total of $6 million USD.
In his presentation, Nguyen said that the company had two unique advantages: Vietnam’s booming real estate market which provides opportunities to involve new owners in the temporary housing business and Luxstay’s first mover advantage, being the first company of its kind in Vietnam.
|Some of Shark Tank Vietnam’s judges in a PR photo from the show|
Nguyen also said that, “We have witnessed a huge market demand for short-term stays. Luxstay has not only met the accommodation needs of pleasure and business visitors, but also created a new demand for corporate accommodation and events, which is a niche market that no other players have exploited here. The segment could reach a minimum scale of 10-20% of the total accommodation market spending, worth of some $15 billion in 2025.”
According to Luxstay, the company is building a network of partners and is providing solutions to help them manage their rental properties in a sufficient and effective manner. The company has focused on Vietnam’s main cities but is now adding properties across the country into its network.
According to market research company AirDNA, there are 50,000 active homestay listings in Vietnam, in the form of entire homes, private rooms (also called homestays), or shared rooms. Both global vacation rental companies like Airbnb and local businesses like Luxstay are growing fast to meet the demand for home sharing in Vietnam, becoming an integral part of the tourism industry and allowing travelers to visit all regions of the country.