Boutique hotels, guesthouses, B&Bs—properties operating outside major chains—make up the independent lodging sector. What's happening in this market globally, and where is it headed?
Hello, subscribers—this is Weekly ON, your hospitality newsletter. Ever heard of "independent lodging"? It's an industry term for properties that operate outside major chains: small and mid-sized boutique hotels, guesthouses, B&Bs, and more. Today we're looking at global trends in this sector—and what's ahead.
⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting.
In this edition:
💡 Global independent lodging enters a boom cycle
🏠 What really matters when you're running a lodging business
⌨️ #BookingDMA #JejuTourismRecovery #ShortStayPackages #BusanForeignTourists #HangangBridgeHotel
💡 Hospitality Trends
Global independent lodging enters a boom cycle
Good industry reports are always a pleasure to read. Cloudbeds recently released the State of Independent Lodging 2024—a report based on data from over 10,000 independent properties worldwide (boutique hotels, guesthouses, etc.).
It offers sharp insights into global independent lodging trends and traveler behavior. Here's a recap of the key points for Weekly ON readers. Full report available at the link above.
Inflation isn't putting a dent in travel
The average daily rate (ADR) for independent properties rose from an index of 100 in 2019 to 120 in 2023. Revenue per available room (RevPAR) climbed from 100 to 120 as well. Meanwhile, occupancy rates in 2023 stayed roughly in line with 2019.
This pattern shows up across multiple reports. Whether it's inflation or post-COVID "revenge travel," lodging is booming—not just in Korea, but globally.
Another notable shift: guests are staying longer. In 2019, 48% of guests stayed one or two nights. By 2023, that dropped to 43%. Three-night-plus stays are on the rise.
At the same time, OTAs have become more important than ever. The report found that 65% of bookings in Asia and 76% in Europe now come through OTAs.
The recommendation? Independent hotels should be active on at least six OTAs: a mix of global players (Booking.com, Expedia), local platforms (Yeogi Eottae, Yanolja), and niche channels (think Naver, Kakao, SoCar in Korea's case).
The report also offers a positive outlook for the sector. So what are the six factors driving demand for independent lodging?
👉<Global independent lodging enters a boom cycle>
🏠 Industry Talk
What really matters when you're running a lodging business
Running a guesthouse or pension isn't just about renting out rooms—it's about building and operating a business. So what do you actually need to have in place?
At minimum, there are ten things to prepare: 1) Secure a property. 2) Decide on your business structure—sole proprietorship or corporation. 3) Write a sustainable operations plan. 4) Name your property. 5) Become an expert in hospitality. 6) Understand your competition. 7) Plan your financing. 8) Check for government support programs.
Beyond that: logos, branding, legal compliance, hiring staff, filing taxes properly—all of these affect whether you succeed or lose money down the line.
That's a lot already. But we've left out something critical: preparing to sell rooms—i.e., marketing.
More details at the link below.
👉<Pension Plus takes care of your marketing challenges (feat. ₩1.5M support)>
⌨️ Keyword News
1️⃣ Booking.com DMA regulation 👉[full story]
TL;DR: EU designates Booking.com as gatekeeper under DMA
The story: The European Union has designated Booking.com as a "gatekeeper" under the Digital Markets Act (DMA), which aims to curb the market dominance of major platform companies. Other gatekeepers include Google, Amazon, and Apple.
In Korea? On May 16, Korea's Fair Trade Commission announced plans to revive the Platform Fair Competition Promotion Act, targeting unfair practices by platforms in e-commerce, mobility, and lodging.
2️⃣ Jeju tourism rebound 👉[full story]
TL;DR: Jeju visitor numbers bounce back after prolonged slump
The story: Jeju tourism has broken its decline since April 2023, posting growth again. In March, total visitors reached about 5.31 million—up 0.7% year-on-year.
Why? Domestic family travel demand combined with a sharp rise in foreign tourists, mainly from China. In February alone, foreign arrivals jumped 741.5% year-on-year.
3️⃣ Short-stay packages 👉[full story]
TL;DR: Korean hotels diversifying with flexible check-in/out times
The story: Domestic hotels are rolling out differentiated packages that break from standard check-in/out times, catering to varied guest lifestyles.
What's next? Offerings include "short-cations" (compressed stays), late check-ins after work, and daytime-only brunch packages. Expect more lifestyle-aligned packages ahead.
4️⃣ Busan foreign tourist arrivals 👉[full story]
TL;DR: Busan foreign tourist numbers hit 99.8% of 2019 levels
The story: In Q1 2024, foreign arrivals to Busan reached 232,000—99.8% of 2019 levels. That's the closest any major Korean city has come to full pre-COVID recovery.
Nationwide? Korea as a whole saw 3.4 million foreign visitors in Q1, recovering to 88.6% of 2019 levels. March set a new post-COVID monthly peak.
5️⃣ Hangang Bridge Hotel 👉[full story]
TL;DR: Hangang Bridge Hotel opens July 16
The story: The "bridge hotel" on Hangang Bridge will officially open July 16. Bookings will be available via Airbnb, with rates between ₩340,000–500,000 per night.
Event? To mark the opening, Seoul is hosting a free stay giveaway. Submit your story about family love or friendship on the Seoul City website by May 22.