ONDA Releases H1 2024 Accommodation Trends Report: Luxury Lodging Demand on the Rise

ONDA Releases H1 2024 Accommodation Trends Report: Luxury Lodging Demand on the Rise

- ONDA publishes H1 2024 Hospitality Data & Trends Report

- Hotel and resort revenues climb as pool villas sustain growth

- Small and mid-sized lodging market splits between value and luxury

(Press Release—September 13, 2024) Korea's lodging industry saw a clear shift toward premium accommodations in the first half of 2024. While large properties gained from the rebound in inbound tourism, smaller hotels and guesthouses—largely dependent on domestic travelers—posted flat or declining results. Among small and mid-sized properties, demand polarized sharply between budget-friendly stays and high-end offerings.

According to the 2024 H1 Hospitality Data & Trends Report released today by hospitality tech company ONDA, online accommodation sales transacted through ONDA's platform rose 14.5% year-on-year and 35.9% compared to H1 2022.

As inbound tourism recovers and domestic "staycation" culture persists, hotels and resorts recorded revenue increases of 29.6% and 14.1%, respectively, versus last year. In particular, revenue for hotels in the Seoul metropolitan area (Seoul, Gyeonggi, Incheon) jumped 63% from two years prior. In contrast, pensions and glamping/caravan/camping sites—popular with Korean travelers—saw revenues fall 1.3% and 15.3% year-on-year.

Even as smaller properties struggled, pool villas—considered premium lodging—grew 13% year-on-year. The preference for high-end, private accommodations that emerged during the pandemic continued into H1 2024.

Average transaction value also varied by accommodation type. Hotels and resorts saw average guest spending rise 21.7% and 12.3%, respectively, since H1 2022. Pensions and pool villas, by contrast, saw average spending drop 2.3% and 20.8% over the same period.

Polarization in the small and mid-sized lodging market is stark. During this year's peak season, sales of rooms under ₩100,000—perceived as budget-friendly—rose 8.1% year-on-year. At the same time, sales of premium rooms priced above ₩400,000 grew 13.6%. Sales of ultra-luxury rooms priced above ₩600,000 jumped 52.3%, underscoring strong demand at the high end.

By distribution channel, global OTAs and direct-to-consumer (D2C) bookings showed the strongest growth. Global OTA revenues rose 66.8% compared to H1 2022, likely driven by travelers who adopted international platforms during overseas trips and continued using them domestically. Hotel D2C channel revenues also climbed 71.5% over the same period, reflecting growing focus on brand differentiation and personalized marketing.

Online booking channels continue to diversify. Corporate and membership-based closed platforms and vertical travel services tailored to niche audiences grew 128% and 56% year-on-year, respectively.

The report also includes global hospitality industry trends and emerging distribution channel insights. It is available for free download on the ONDA website.

"As demand for premium lodging grows, properties with distinctive character and unique positioning are winning," said Choi Jun-ho, Head of Communications at ONDA. "We'll continue sharing data-driven insights that help accommodation operators make better business decisions."

ONDA publishes the Hospitality Data & Trends Report twice a year for hotel and lodging professionals. This edition draws on 1.56 million actual booking transactions processed through ONDA HUB—Korea's largest integrated distribution platform—over the past three years. The full report is available in the Content (Reports) section of the ONDA website. <End>