Luxstay

About Luxstay

Luxstay emerged in the Vietnamese market in 2016 as a digital platform focused on the short-term rental sector. It was founded by Nguyen Van Dung, a serial entrepreneur who previously established the ad tech company Netlink Online Communications and served as Chairman of Metub Network, a major YouTube multi-channel network in Vietnam. Nguyen, who started his first company at 18, envisioned Luxstay as a challenger to global players like Airbnb by concentrating on the specific needs of the domestic Vietnamese travel market.

The company operated a sharing economy model, creating an online marketplace that connected property owners of apartments, villas, and homestays with tourists and business travelers seeking short-term accommodations. Luxstay distinguished itself by focusing on the mid- to high-end segment of the market and providing support solutions for property owners to help manage their assets, an area it identified as a gap in the services offered by international competitors. Its business model involved charging a service fee for each successful booking, which at one point was a 15% fee that could be levied on either the host or the guest.

Luxstay garnered significant attention through substantial funding rounds and a high-profile appearance on Shark Tank Vietnam. The startup secured a total of $16.5 million over four funding rounds, including investments from notable venture capital firms like CyberAgent Ventures, Genesia Ventures, and Y1 Ventures. A landmark moment was the record-setting $6 million investment commitment on Shark Tank in 2019 from three of the show's investors. The company also made headlines by bringing on popular Vietnamese singer Son Tung M-TP as an investor and brand ambassador to promote local tourism.

However, the global pandemic severely impacted the tourism industry, presenting significant challenges for the company. In June 2022, Luxstay's website and app became inaccessible, which the company stated was part of a planned brand restructuring. Subsequently, the platform shifted its business model. The website now operates as an aggregator for flights and hotels, redirecting users to partners like Agoda for booking, a departure from its original homestay-focused, direct-booking model. The company's Ho Chi Minh City representative office, established in 2019, has since been dissolved.