Digital transformation isn't just about adopting technology — it's about changing your entire business model.
⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting.
In This Week's Issue
🏨 How far has my hotel come with digital transformation?
💡 110,000 illegal serviced residences — easing requirements to encourage compliance
⌨️ #DomesticTourismSpending #7TravelTrends #SeoulTourismConcentration #InfluencerGroupBuying #ShortTermRentalIncome
🏠 Industry Stories
How Far Has My Hotel Come With Digital Transformation?
Digital transformation is typically broken down into three stages. Simply put: if you work on computers, you're at stage 1. If you take bookings via your website or OTAs, you're at stage 2. If you've built new digital-native business models, you're at stage 3 — and your transformation is on track.
Let me break it down:
Stage 1 is Digitization — converting handwritten records and analog data into digital formats.
Stage 2 is Digitalization — using digital tools to improve guest experience and operational efficiency. This includes online booking systems, automated check-in/check-out, and process optimization.
Stage 3 is Digital Transformation — leveraging digital technology to create new revenue models or fundamentally change your existing revenue structure. Hotels might offer data-driven personalized packages, or build subscription models to drive loyalty. The key difference between stages 2 and 3? Whether you've transformed your revenue model.
Before we dive in, let's run a quick self-assessment. How far along is your hotel? The more boxes you leave unchecked, the more work you have ahead.
👉Read the full piece: <How Far Has My Hotel Come With Digital Transformation?>
💡 Hospitality Trends
110,000 Illegal Serviced Residences — Easing Requirements to Encourage Compliance
TL;DR: Government to ease registration requirements for serviced residences after 110,000 units found operating in legal gray zones.
The story: There are currently around 188,000 serviced residence units nationwide. Only 40.5% operate legally. Around 110,000 units have yet to register as lodging businesses or change their building use permits.
To encourage compliance, the government plans to ease registration and permit requirements. First, local governments can lower registration thresholds from 30 units to 20 or even 10 units, making it easier for operators to formalize. Current rules — requiring ▲30+ units ▲entire floor ▲⅓+ of building area — have kept many individual owners in limbo.
The biggest obstacles to converting officetels — hallway width and parking requirements — are also being relaxed. Conversions once blocked by safety, location, and other concerns will now be allowed.
New serviced residences will be banned from unit-by-unit sales to prevent residential misuse. And the enforcement fine grace period, originally set to expire this year, has been extended to September 2025.
⌨️ Keyword News
1️⃣ Domestic Tourism Spending 👉[Full story]
TL;DR: Korean domestic tourism spending down 4.7% in Q1–Q3.
The story: From January to September, domestic tourism spending by Koreans fell 4.7% year-over-year. Except for March (up 0.1%), every month trailed last year — continuing the trend of budget travel.
What about foreign visitors? As inbound tourism rebounds, foreign visitor spending jumped 32% in the same period. Shopping accounted for 37.8%, followed by lodging (34.9%) and F&B (20%).
2️⃣ 7 Travel Trends 👉[Full story]
TL;DR: 2025 travel trends spotlight collective experiences and the power of discovery.
The story: Skyscanner named seven trends to watch in 2025: ▲Cowboy Core ▲Sports Mode ▲Astrotourism ▲Wellness Tours ▲Artventure ▲Garden Tours ▲eSports Mode.
The outlook? In an increasingly personalized world, travelers are seeking out communities of like-minded people to share unique experiences together.
3️⃣ Seoul Tourism Concentration 👉[Full story]
TL;DR: 80% of foreign tourists visit Seoul, 18% visit Busan.
The story: Last year, 80.3% of inbound tourists (multiple responses allowed) visited Seoul. The Seoul-centrism that eased during COVID has intensified again since tourism resumed in earnest in 2022.
The breakdown: After Seoul, the top destinations were Busan (17.6%), Gyeonggi (13.3%), Jeju (8.7%), Incheon (6.5%), Gangwon-do (6.5%), and Gyeongsangbuk-do (3.0%). Most regions outside major cities stayed in the 1% range.
4️⃣ Influencer Group Buying 👉[Full story]
TL;DR: Travel industry eyes influencer group buying as sales channel.
The story: Influencers running group buys on social media are everywhere these days. Now the travel industry is taking notice, with influencer group buying emerging as an effective sales channel.
The outlook? Travel agencies and OTAs are already using it actively. With proven results in reach and conversion, influencer group buying is set to grow even more.
5️⃣ Short-Term Rental Income 👉[Full story]
TL;DR: Short-term rental income up 10x in three years.
The story: In 2022, short-term rental income hit ₩22.36 billion — up 160.6% from the prior year. That's a tenfold increase compared to 2020. By age, Gen Z and Millennials accounted for 43.6% of total income.
The concern? As the market grows, so do worries about illegal rentals. Enforcement cases represent just 6.4% of actual suspected illegal operations.