Q1 2022 ONDA Stay Index (OSI) analyzes domestic accommodation industry data
"Travel demand rises on hopes of endemic transition"
Hospitality Tech Company ONDA
Releases Q1 2022 Accommodation Industry Index (OSI)
- Q1 2022 ONDA Stay Index (OSI) analyzes domestic accommodation industry data
- Jeju stays popular as overseas travel alternative; North Gyeongsang emerges as hot new destination
- D2C channel expansion drives 187.41% surge in ONDA Pay volume via Google Hotels
- Full lifting of social distancing and mini peak season expected to trigger explosive demand in Q2
(Press Release = May 3, 2022/Tuesday) The hotel and accommodation industry entered full recovery mode in Q1 2022 as social distancing measures eased in stages and expectations grew for an endemic transition.
Hospitality tech company ONDA released its Q1 2022 ONDA Stay Index (OSI), an analysis of domestic accommodation industry trends, on the 3rd.
According to the OSI released by ONDA, total domestic accommodation industry revenue in Q1 2022 increased approximately 87% year-over-year. That's a staggering 150% jump compared to Q1 2020, when the travel industry was hit hardest by COVID-19. The primary driver: pent-up travel demand released as social distancing measures gradually lifted.
By region, Jeju Island — which saw explosive growth last year — posted 177% YoY growth this year, cementing its position as the go-to substitute for overseas travel. Meanwhile, as the prolonged pandemic boosted domestic travel preferences and sparked demand for new destinations, southern North Gyeongsang Province more than doubled its growth rate, emerging as the next hot travel spot after Jeju.
Among major urban centers, Seoul and Busan rebounded 197% and 283% respectively, though this was largely attributed to base effects from the severe COVID-19 impact in Q1 2021.
By accommodation type, hotels — which began climbing in the second half of last year as "hotelcations" became mainstream — grew 140% YoY and entered recovery mode. By contrast, pool villas and glamping sites, which had been in the spotlight as social-distancing-friendly options, showed relatively modest growth. Demand for private travel experiences appears to be waning as restrictions ease on previously constrained accommodation types.
All sales channels posted strong YoY growth. However, the growth rate for e-commerce platforms lagged behind both domestic and international OTAs, which continue to break records. Notably, e-commerce's share of total channel volume dropped 9.5 percentage points YoY to 40.2%, while international OTAs gained 4.2 points and domestic OTAs 2.0 points — clear evidence that the shift from e-commerce to OTA is accelerating.
Particularly noteworthy: ONDA Pay transaction volume — a key D2C (Direct-to-Consumer) metric — jumped 187.41%. Hotels and accommodation providers hit hard by the pandemic turned to Google Hotels (ONDA's exclusive domestic partner) as a breakthrough strategy to cut commission costs and maximize direct revenue, strengthening their D2C approach.
Kim Ki-wook, Head of ONDA Data Lab, said, "Q2 2022 is expected to show even more explosive growth than Q1, reflecting the full lifting of distancing measures and the endemic transition. We're entering a mini peak season with warmer weather, and the synergy from multiple events including Korea Accommodation Festival should amplify the effect."
ONDA releases the OSI every quarter to help hotel and accommodation industry stakeholders quickly grasp industry trends and respond proactively. The index is compiled from approximately 50,000 room inventory data points accumulated in ONDA's domestic GDS (Global Distribution System) — the country's largest sales network — and analyzes actual transactions by sales region, property type, room type, and booking period.
ONDA is Korea's first hospitality tech company to simultaneously operate an Online Booking Solution (OBS), Global Distribution System (GDS), and Hotel Management (HM) services. The company recently ranked 7th among Korean tech companies on the Financial Times' 2022 Asia-Pacific High-Growth Companies list, and became the first Korean company to appear on Skift's Global PMS Vendor ranking at #34. <end>