Weekly hospitality news — October, week two
1. HOW IS TRAVEL ADAPTING TO THE SUBSCRIPTION ECONOMY? | Phocuswire | 2022.10.07
Video streaming, music, e-commerce, even cars — everything's a subscription now. How many are you paying for?
According to the Korea Creative Content Agency, Koreans subscribe to an average of 2.7 paid content services. KT Economic and Management Research Institute estimates the domestic subscription economy grew from ₩26 trillion in 2016 to ₩40 trillion in 2020, and could hit ₩100 trillion by 2025.
Travel subscriptions generally fall into two buckets: Access and Membership.
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Access models sell permission — VIP lounges, upgraded rooms, exclusive amenities, special services. Think airport lounge passes.
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Membership models sell perks — discounts, bonus content, loyalty rewards. Think hotel loyalty tiers — but paid upfront.
2. BALANCING BRAND ENGAGEMENT FOR GEN Z, MILLENNIAL AND GEN X TRAVELERS | Phocuswire | 2022.10.03
Gen Z wants brands that offer real experiences, emotional connection, and tangible sustainability efforts.
Earthweb data shows Gen Z makes up 26% of the global population — over 2 billion people. Hotels can't afford to ignore them.
Travel software company Codegen recommends gamified engagement with direct rewards, immersive VR/AR experiences, and hyper-personalization through big data. They say hotels need to start now.
The challenge: attracting Gen Z without alienating Millennials and Gen X.
3. Why are Coupang and SK Telecom employees flocking to Gangwon-do? | Gangwon Daily | 2022.10.04
Over the past two years, more than 1,000 corporate employees have participated in Gangwon-do's official workation program.
Gangwon-do reports that companies like Dunamu, SM C&C, Socar, and MyRealTrip have introduced workation policies.
A participant survey found that 87% said combining work and vacation didn't disrupt their productivity.
If you include unofficial corporate workations, the actual domestic workation market is likely much larger. As demand grows, more hotels and resorts are equipping themselves with workation-friendly setups — high-speed internet, coworking spaces, meeting rooms.
Workation is becoming a legitimate work model, not a perk.
Aesthetic stays are the new trend in Korean hospitality.
These are standalone, house-style accommodations with private yards and Instagram-worthy interiors. The market has grown faster than five-star hotels, fueled by workation demand and Gen Z/Millennial travelers. The sector is expected to hit ₩1.04 trillion this year.
Popular aesthetic stays in Jeju and Gangwon charge ₩200k–500k per night — comparable to five-star hotels — and sell out quarters or half a year in advance.
Most don't list on OTAs. They operate through Instagram DMs. That's why Korean OTAs and travel agencies are now actively scouting aesthetic properties to bring them onto their platforms.
Google Maps will now show ticket pricing and booking links for tours and activities (experiences).
Earlier this year, Google Maps started showing hotel prices and booking. Now Google is expanding into activities — after flights and hotels.
According to Google VP Richard Holden, searches for "fun things to do" hit an all-time high in the U.S. last year.
With over 1 billion monthly active users worldwide, Google Maps is poised to become a major distribution channel for tours and activities.
U.S. hotels are leaving rooms empty because they don't have enough staff to service them.
Labor shortages are hitting hard. According to a May survey by the American Hotel & Lodging Association, 97% of hoteliers reported labor shortages.
Staffing issues directly affect guest experience. U.S. hotels are turning to technology to fill the gap.
Mobile apps now handle check-in, digital room keys, and light room service. Robots deliver items and assist with cleaning, offsetting the labor crunch.
Foreign tourists are returning to Korean business hotels, driven by endemic conditions and a weak won.
The Korea Tourism Organization reports that daily foreign arrivals this month averaged 7,520 — 21 times higher than January.
L7 Myeongdong saw its foreign guest share jump from 10% last September to 60% this year. Four Points by Sheraton Josun Seoul Station went from 8% to 55%.
Still, the industry is cautious about full recovery. Chinese tourists haven't returned in force, and outbound Korean travel is normalizing — which could reduce domestic hotel demand.
Booking.com has signed a long-term strategic partnership with Klook, a global travel and leisure booking platform, to integrate experiences.
The partnership brings activities from 30+ countries and 175 cities to Booking.com — most concentrated in the Asia-Pacific and Oceania regions.
In Korea, offerings include Busan full-day tours, Seoul zombie game tours, and retro costume rentals.
This move reflects a shift: expanding tours and activities in Asia to meet traveler demand for unique, local experiences.
9. TikTok emerges as ad tool for Korean companies targeting global markets | Ajunews | 2022.10.13
Korean conglomerates and travel platforms like Yanolja and Yeogi Eottae are using TikTok for brand campaigns and service launches.
A July survey found that TikTok surpassed Instagram in usage time among Korean teens. That makes it the most effective channel to reach future consumers — teens and 20-somethings.
Yanolja's #YanoljaHae challenge on TikTok hit over 25 million views. Yeogi Eottae reported high booking conversion rates after launching TikTok videos.
TikTok crossed 1 billion MAU last year and keeps growing. Expect more Korean companies to use it as a key marketing channel for Gen Z at home and abroad.
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