ONDA Releases Accommodation Trends Report: International OTAs and Portals Surge

ONDA Releases Accommodation Trends Report: International OTAs and Portals Surge

- ONDA releases H1 2023 Hospitality Data & Trends Report: Total accommodation revenue up 27%

- Domestic OTAs see slight decline while international OTAs and portals show sharp growth

- Seoul and Busan revenue climbs; Jeju is the only region posting negative growth

(Press Release — August 31, 2023) Korea's domestic accommodation market cooled as outbound travel fully reopened — a contrast to the explosive pandemic-era growth.

On the 31st, hospitality tech company ONDA released its 'H1 2023 Hospitality Data & Trends Report,' showing that online sales revenue for domestic accommodation businesses grew 27% YoY in the first half of 2023.

That's a 73 percentage point drop from the 100% growth rate in 2022 versus 2021. Still, the sector held up better than expected despite the surge in overseas travel.

Unlike last year when nearly all accommodation metrics rose, H1 2023 saw winners and losers across online sales channels, property types, and regions.

Domestic OTAs — which boomed during the staycation years — posted a 2.9% revenue decline in H1 2023 versus the prior year. Meanwhile, international OTAs and portals grew 79% and 50%, respectively. Portals sustained the momentum that made them 2022's fastest-growing channel.

By property type, hotels and resorts showed steady growth. H1 2023 revenue for hotels rose 25%, while resorts jumped 60% YoY. The driver was average transaction value rather than booking volume. Hotel and resort bookings grew just 3% and 27%, respectively, while average prices climbed 22% and 29%.

Pool villas — a pandemic darling — lost steam. Revenue growth slowed to 21% in H1 2023 from 72% the prior year, and average prices fell 5% YoY.

Regionally, major urban centers like Seoul and Busan led growth. Seoul hotels in particular benefited from the return of MICE events and inbound tourism: H1 2023 revenue was 8× higher than in 2021, with average prices more than doubling. Even versus 2022, revenue grew 47% — the strongest performance of any region.

Jeju was the only region to post negative growth. With Korean travelers heading abroad again, H1 2023 revenue on the island fell 16% YoY. That said, if China fully reopens group tours to Korea, a quick recovery is expected.

An ONDA representative commented, "The first half of 2023 was marked by major shifts in both domestic and international accommodation as we entered the endemic phase. Going forward, Korea's accommodation industry will be shaped less by COVID and more by the economic conditions of our key inbound markets."

ONDA publishes its 'Hospitality Data & Trends Report' biannually to help hoteliers and accommodation professionals stay ahead of industry shifts. The report draws on 1.1 million actual transactions over three years from Korea's largest integrated booking platform, ONDA HUB. The full report is available in the Reports & Content section of ONDA's corporate blog.