Summer vacation and Chuseok holiday drive domestic travel demand
"Summer vacation and Chuseok holiday boost domestic travel"
ONDA Releases Q3 2022 Hospitality Industry Index (OSI)... Accommodation Revenue Rebounds, Portal Bookings Surge
- ONDA publishes Q3 2022 OSI: overall accommodation revenue up 75%
- Summer vacation and Chuseok holiday drive domestic travel demand
- Hotels, motels, resorts see sharp increases... up ~300% year-over-year
- Revenue expected to return to pre-pandemic levels by H2 2023
(Press Release — November 11, 2022) Q3 2022 accommodation and hotel revenue showed a steep recovery driven by the endemic shift, summer vacation travel, and the Chuseok holiday.
On November 11, hospitality tech company ONDA released its Q3 2022 ONDA Stay Index (OSI), analyzing domestic accommodation trends and global hospitality patterns. The full report is available for download in the Reports & Content section of ONDA's corporate blog (corp.onda.me).
According to ONDA's OSI, total domestic accommodation revenue in Q3 2022 rose 75% compared to 2021 and 142.5% compared to 2020. Revenue peaked between the second and third week of September, driven by the Chuseok holiday, and saw another significant jump during the first week of October, which was a golden week holiday period.
By property type, hotels, motels, and resorts led the surge. Revenue from these segments more than tripled year-over-year, confirming the rise in domestic travel demand as Korea transitioned into the endemic phase.
Online platform revenue grew across the board compared to the same period last year. Portal sites and overseas OTAs showed particularly impressive growth. Portal transaction volume increased 130.9% compared to 2021 and 247.9% compared to 2020, marking continued market share gains. Overseas OTA transaction volume rose 77% year-over-year and 502.8% compared to 2020, achieving another year of strong growth.
By region, Gangwon-do and Gyeonggi-do—both within driving distance from the Seoul metro area—along with Jeju, a consistent substitute for overseas travel, recorded the highest revenue. Gyeongsangbuk-do, which launched a major tourism push last year, grew 38.9% in 2022, cementing its status as a rising tourist destination.
In major urban centers, Seoul and Busan saw revenue jump 350.7% and 261.5% year-over-year respectively, driven largely by recovering hotel demand.
Lead times (the period between booking and check-in), which shortened during the pandemic, have been extending again as travel demand recovers in the endemic era. High-priced properties like pool villas and resorts showed peak-season lead times around 30 days, while motels maintained short lead times regardless of seasonality.
An ONDA spokesperson commented: "Q3 2022 showed a strong recovery for the accommodation and hotel sector, fueled by increased travel demand during the endemic transition and the golden holiday periods. We expect revenue to return to 2019 pre-pandemic levels by the second half of next year, as overseas travel becomes even more accessible."
ONDA releases the OSI quarterly to provide hospitality professionals with year-over-year industry trends. The OSI is compiled from data across approximately 50,000 properties nationwide transacted through ONDA's integrated distribution system (ONDA HUB), the largest of its kind in Korea, analyzing over 5.8 million actual room sales transactions.
ONDA was also named the first Korean company to rank on Skift's Global PMS Vendor list, debuting at #34, and is emerging as a leading player in the global hotel tech market.
The company has built strong partnerships with global tech giants, including becoming Airbnb's first official partner in Korea and Google Hotel's first Korean partner. ONDA was recently selected for the Ministry of SMEs and Startups' Baby Unicorn program and ranked 7th among Korean tech companies in the Financial Times' 2022 High-Growth Companies Asia-Pacific list. <END>
