Vietnam Capsule Hotel Market Size, Share, Trends and Forecast by Traveler Type, Booking Mode, Age Group, Application, and Region, 2026-2034

Vietnam Capsule Hotel Market Overview:

The Vietnam capsule hotel market size reached USD 1.44 Million in 2025. Looking forward, the market is expected to reach USD 3.33 Million by 2034, exhibiting a growth rate (CAGR) of 9.74% during 2026-2034. The market for Vietnam capsule hotels is propelled by increased tourism, increasing popularity of low-cost travel, and the growing demand for creative, space-efficient urban accommodations. Increased domestic travel and government efforts to increase tourism also contribute to market growth. Prime locations along airports, train stations, and downtown areas improve accessibility and attractiveness, which further drives the expansion and competitiveness of the Vietnam capsule hotel market share.

Vietnam Capsule Hotel Market Trends:

Increased Budget Travel and Solo Tourism

Vietnam is witnessing an upward growth in budget travel, especially prompted by the increased popularity of solo tourism and the culture of backpacking. The concept of capsule hotels from Japan has gained firm roots in the cities of Vietnam where space is a major issue, and tourists look for cheap yet comfortable lodging facilities. This is especially true among younger travelers, such as Generation Z and millennials, who value experiences over high-end accommodations. The increasing presence of digital nomads and remote workers traveling to Vietnam also helps drive the need for short-term, flexible accommodation options. Independent travelers, who account for several foreign travelers to Vietnam, especially prefer capsule hotels because they are safe, have social atmospheres, and are cheap. The trend is also bolstered by the status of Vietnam as a central destination within the Southeast Asian backpacking route, with its cities such as Hanoi, Ho Chi Minh City, and Da Nang experiencing growing demand for space-efficient and budget-friendly accommodation types.

Technology Integration and Contemporary Amenities

The Vietnam capsule hotel market growth is fueled by notable technological innovation as players vie to appeal to technology-oriented visitors. Contemporary capsule hotels in Vietnam are adding smart amenities like self-service check-in systems, mobile app controls for temperature and lighting, fast Wi-Fi, USB charging outlets, and digital entertainment systems in the individual pods. Most establishments now have 24/7 automated facilities with decreased operating costs while offering the convenience of easy access for guests with unpredictable schedules. The coupling of contactless payment systems with online booking systems has facilitated greater accessibility for global tourists to these facilities. Moreover, the focus on cleanliness and sanitation, especially after COVID-19, has compelled the implementation of UV sanitization systems, air purification systems, and increased cleaning. These advances in technology have transformed the capsule hotel experience from no-frill budget stay to a contemporary, efficient lodging style that attracts quality-budget travelers. The shift toward Instagram-friendly interiors and innovative design ideas has also contributed to the popularity of Vietnamese capsule hotels among younger travelers who care about visual attractiveness and social media virality.

Urbanization and Location Strategy

The location strategy of placing capsule hotels in top urban spots is fueling market expansion in Vietnam's urban cities. Operators are targeting high-traffic locations like business districts, transport hubs, and tourist hotspots to fill rooms to capacity and attract business and leisure travelers. The model works best in urban areas where conventional hotels must contend with high real estate prices, yet operators and customers alike find capsule hotels more acceptable as an option. Urban centers such as Hanoi and Ho Chi Minh City have also experienced the development of capsule hotels within city centers, providing tourists with easy access to business areas, entertainment zones, and transport hubs. The growth strategy further involves targeting travel hubs like airports and main stations, riding on increasing numbers of transit passengers and early-bird travelers who need accommodations for a short period. This city-centered strategy has worked well for Vietnam's fast-growing urban economy, where convenience of location and space efficiency are becoming more important to travelers who look for effective and functional accommodation options.

Vietnam Capsule Hotel Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on traveler type, booking mode, age group, and application.

Traveler Type Insights:

• Solo
• Group

The report has provided a detailed breakup and analysis of the market based on the traveler type. This includes solo and group.

Booking Mode Insights:

• Online Booking
• Offline Booking

A detailed breakup and analysis of the market based on the booking mode have also been provided in the report. This includes online booking and offline booking.

Age Group Insights:

• Generation X
• Generation Y
• Generation Z

The report has provided a detailed breakup and analysis of the market based on the age group. This includes generation X, generation Y, and generation Z.

Application Insights:

• Office Workers
• Tourists
• Others

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes office workers, tourists, and others.

Regional Insights:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Vietnam, Central Vietnam, and Southern Vietnam.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Vietnam Capsule Hotel Market News:

• In March 2025, CUBE Boutique Capsule Hotels transformed capsule lodgings with unmatched comfort and elegance when they opened in Vietnam, Indonesia, Hong Kong, Malaysia, and Australia. Since its founding, CUBE Boutique Capsule Hotels has revolutionized the hospitality sector by fusing cultural experience, luxurious comfort, and affordability. 

Vietnam Capsule Hotel Market Report Coverage:

Key Questions Answered in This Report:

• How has the Vietnam capsule hotel market performed so far and how will it perform in the coming years?
• What is the breakup of the Vietnam capsule hotel market on the basis of traveler type?
• What is the breakup of the Vietnam capsule hotel market on the basis of booking mode?
• What is the breakup of the Vietnam capsule hotel market on the basis of age group?
• What is the breakup of the Vietnam capsule hotel market on the basis of application?
• What is the breakup of the Vietnam capsule hotel market on the basis of region?
• What are the various stages in the value chain of the Vietnam capsule hotel market?
• What are the key driving factors and challenges in the Vietnam capsule hotel market?
• What is the structure of the Vietnam capsule hotel market and who are the key players?
• What is the degree of competition in the Vietnam capsule hotel market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam capsule hotel market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam capsule hotel market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam capsule hotel industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.