Top 10 hospitality news from the first week of October
1. How to Win Guests and Influence Booking Behavior | HNRHotelnews | 2022.10.04
Brett Thoreson, founder of hotel remarketing service CartStack, puts it this way: "You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you." In other words, the most effective marketing today is personalized messaging.
Revinate's guest data research backs this up: 86% of consumers say personalization plays a major role in their purchase decisions. Over 70% of hotel guests report having a more positive experience at properties that use personalization technology.
The simplest and most effective way to personalize? Use guests' names. Most hotels blast out impersonal mass emails. Simply inserting a guest's name shows you're paying attention.
Through personalized marketing, hotels can attract more loyal guests and drive direct bookings—which translates to higher revenue.
Try sending emails with your guests' names in them.
Naver announced it will enter the corporate travel market starting next year. According to the travel industry, Naver has proposed business travel service partnerships to major agencies including Hana Tour, Mode Tour, and Interpark.
Naver expects the service to improve corporate travel management efficiency while driving new customers to small and mid-sized agencies.
The industry, however, is hesitant due to low margins from transaction fees. Some see it as a major portal trying to squeeze into travel's "corner store" territory.
In 2019, travel agencies boycotted Skyscanner's unilateral commission hike—but eventually caved to its market dominance. Naver has stated it's "considering ways to improve the efficiency and productivity of partnering agencies, taking industry concerns into account."
Short-term rental platform Airbnb was summoned as a witness to a National Assembly audit—appearing before the Public Administration and Security Committee on October 4.
Though Airbnb was previously reported to prosecutors in 2017 for failure to comply with an unfair terms correction order, this marks its first time at the witness stand.
When the summons was issued, Airbnb was expected to face questions about illegal lodging operations and potential tax evasion. Over the past five years, about 80% (664 cases) of unregistered accommodations caught in Seoul, Gangwon, Busan, and Jeju were mediated through Airbnb.
4. HOW TRAVEL BRANDS CAN BOOST THEIR "LOYALTY DIVIDEND" | PhocusWire | 2022.10.05
Travel has some of the oldest and most successful loyalty programs across all industries. But according to management consulting firm Accenture, post-COVID shifts demand changes to loyalty programs too.
Real-time rewards are becoming critical. Travelers want instant gratification—not the traditional earn-and-burn model that takes forever. They want rewards they can use right away.
Travelers also want loyalty programs that work in multiple contexts—not just travel, but everyday life through external partnerships.
Above all, loyalty programs must clearly demonstrate value to the traveler. As guest expectations evolve, Korea's travel industry needs to rethink its loyalty offerings.
As of October 1, mandatory PCR testing for arrivals has been lifted.
Following the earlier removal of quarantine and pre-departure negative test requirements, this marks the first full rollback of entry measures since January 2020—2 years and 9 months.
According to Incheon International Airport Corporation, weekend daily traffic on the 5th reached 71,247 and 71,463 respectively. The first time daily traffic topped 70,000 since July 31 during peak summer season. Outbound travel is recovering fast with all entry restrictions now gone.
Additionally, eased quarantine measures and a strong dollar are drawing more foreign tourists to Korea. Lotte Hotel reports foreign guest occupancy—which dropped to 20% in 2021—recovered to 60% last month.
We hope the hotel and lodging industry's pandemic slump continues to reverse.
Package tours—long the domain of middle-aged travelers—are now swarming with Gen Z and Millennials.
Tour operator Kyowon launched "MZ PICK," a package line for younger travelers, while Mode Tour introduced influencer-led concept tours.
Mode Tour says the share of bookings from people in their 20s and 30s rose from 21% in 2019 to 35% this year. Bookings from 20-somethings alone doubled to 18%.
However, many believe this surge is temporary. One travel agency official predicts MZ package bookings will drop once visa-free entry to Japan resumes, as younger travelers return to independent trips.
Competition among Korean travel agencies on Naver Flights has devolved into a chicken game.
Post-COVID, as flight bookings concentrated on domestic routes, agencies engaged in brutal competition—waiving booking fees, offering Naver Pay points, credit card discounts. One official said, "Naver's platform power means we can't stop the discount war, even if we're losing money."
According to the industry, Naver has seized control of the flight comparison platform market since COVID. Agencies lured travelers to Naver by piling on benefits.
Consumers win bigger perks, but sellers are trapped in a cutthroat structure that's hard to profit from.
Weak yen and visa-free entry have driven a surge in Japan travel. But domestic destinations like Jeju and Gangwon—which saw demand spikes during COVID—are on high alert.
Recent price gouging scandals hit domestic tourist spots. In fact, through July this year, Gangwon and Jeju—both major pandemic travel destinations—posted the highest regional inflation rates. Travelers have expressed outrage over inflated pricing by local operators.
A Korea Tourism Organization official warned, "Price gouging controversies could push travelers to nearby countries like Japan and China."
Now that the skies have reopened, we hope fair pricing will quiet the backlash and sustain domestic travel demand.
As the endemic era begins and hotel demand rises, more operators are renovating aging properties to boost asset value and attract tourists.
One Gangneung hotel saw a post-renovation spike in visits, room rates, and revenue.
According to hospitality tech company ONDA, hotel revenue in H1 2022 jumped 225% compared to 2020. Because hotels are classified as tourism lodging and face complex construction approval, supply can't easily scale—making operating profit strong in high-demand periods like now.
Experts advise matching hotel concept to core customer demographics based on careful market analysis.
Fireworks festivals suspended during COVID are resuming nationwide. But lodging near festival sites is hiking prices—sparking tourist backlash.
Some accommodations are charging up to 5x their usual rates. Even so, properties with Han River views are already fully booked.
Similar controversy erupted recently when BTS concerts in Busan drove a surge in lodging prices.
Professor Han Jin-soo of Kyung Hee University's Hotel Management program warns: "Raising prices every time there's an event damages the region's image. Stopping price gouging is essential to maintaining a positive long-term tourism reputation."