2021: How online platforms reshaped the lodging industry
Hello. ONDA, the B2B platform digitizing Korea's lodging industry.
COVID-19 has changed how we live — no end in sight. Contactless services boomed. Online platforms are now bigger than ever.
Result? Self-employed businesses are growing dangerously dependent on platforms. For lodging operators, using platforms isn't optional anymore. It's survival.
If you run a pension, you're on Yanolja, Yeogi Eottae, Airbnb — maybe all three. Many operators juggle multiple platforms to maximize reach and revenue.
Platform apps are now embedded in the daily lives of lodging operators.
You're probably satisfied with some parts of platform use. Frustrated by others.
Today, we'll unpack how online platforms are actually affecting the lodging business — with data.
(Source: Ministry of SMEs and Startups — Online Platform User Survey)
1. Cost Burden of Using Online Platforms
Using an online platform typically means paying a platform fee (commission).
What's the average fee? And how do operators feel about it?
First: 59% pay between 10–15% of annual revenue in platform fees. That's more than half of all lodging operators using platforms.
71.3% say these fees are burdensome. Last year, that number was 62.1%. In just one year, the burden perception jumped 9.2 percentage points.
So at what threshold does the fee start to hurt?
The data shows 10% is the inflection point. Beyond that, the sense of burden intensifies sharply. Sure, fees are part of the deal — but platform companies should ask themselves: are current rates actually fair?
Some operators also pay for platform advertising. Interestingly, lodging has the highest rate (33.3%) of operators who don't pay ad fees compared to other sectors. Among those who do, 24.6% spend 5–10% of revenue on ads.
Like platform fees, 10% is the tipping point where ad costs start to feel heavy.
2. Unfair Treatment from Platforms
COVID-19 turbocharged online platforms. In this environment, lodging operators have little choice but to rely on them — even when problems go unaddressed.
47.0% of lodging operators have experienced unfair treatment from platforms.
92.6% cited issues around fees and transaction terms — excessive commissions, unilateral rate changes, arbitrary fee hikes.
11.1% said platforms obstructed them from listing on competitors or pressured them to leave. Of those, 74.1% reported being forced to offer better terms than they gave rival platforms.
As lodging platform competition heats up, communication between operators and platforms matters more than ever. With so many small and mid-sized lodging businesses now platform-dependent, this is an ESG issue — platforms need to invest more in fair, transparent partnerships.
3. Platform Satisfaction
How satisfied are lodging operators, really?
Lodging apps scored 53.6 out of 100 — second-highest satisfaction after open marketplaces.
Among those satisfied: 15% cited advertising/promotional reach, 12.5% said increased revenue.
But 18.5% were dissatisfied. The top complaint? Fee policies — 66.5% of dissatisfied users.
Yet 77% say they'll keep using platforms anyway.
Why? Because platforms drive sales and profits. Because not using them makes it hard to stay in business. You can't neatly separate the upsides from the downsides.
The real challenge: minimizing harm while maximizing the upside.
4. Platform Usage Patterns
Most operators use multiple platforms. The average is 3.6. In lodging, 49.0% use five or more platforms — far higher than other industries. The lodging market isn't dominated by one or two players.
73.5% start using platforms at the moment they launch their business.
Why has platform use become non-negotiable in lodging?
65% say they can't sustain their business without platforms. 54% use them for advertising/promotion. 44% say platforms let them expand into online markets.
And do platforms actually boost revenue?
77.4% saw revenue increase after joining platforms. 36.6% saw revenue rise more than 50%.
Operating profit also climbed. 64.2% reported higher operating income after using lodging apps, and 35.3% saw a 50%+ jump — relatively high compared to other industries.
Bottom line: Lodging operators are deeply dependent on platforms. Most of their revenue now flows through them.
5. Support and Policy Needs
As platform markets grow, so should platform support. Only 12.3% of respondents said they'd received any form of support from platforms — management training, education, tech assistance. That's up 1.9 percentage points from last year, but still far too low given how much power platforms now wield.
Fingers crossed 2022 brings better news on the support front.
Hint for platforms wondering what operators actually want: 82.3% want lower fees (commission cuts).
There's also strong demand for government-led transparency — regular audits of commission rates, public disclosure of fee structures, guidelines on rate hikes. Online platforms are here to stay. But real growth only happens when both sides win.
That's our deep dive into how online platforms reshaped lodging in 2021. The data's clear: platform use is near-universal, and it drives meaningful revenue and profit gains. But the push for fee relief is loud and persistent.
ONDA will keep bringing you more data-driven insights into the lodging industry.