Korea's hotel industry is going green. Hotels are rolling out eco-friendly services and turning them into marketing assets. But what do travelers actually think about sustainability? And what are Korean hotels doing about it?
Hello subscribers, this is Weekly ON, your hospitality newsletter. Korea's hotel industry is riding a green wave. Hotels are launching eco-friendly services and turning sustainability into a competitive edge. But what do travelers actually think about going green? And what kinds of services are Korean hotels offering?
⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting.
Today's Weekly ON
🏨 Sustainable travel is in hotels' hands
💡 Domestic travel sentiment drops back to pre-COVID levels
⌨️ #Q1AccommodationTrends #Short-termRentals #TravelLivestreaming #MICEBleisure #TourismDevelopmentIndex
🏨 Industry Story
Sustainable travel is in hotels' hands
Travelers worldwide are increasingly interested in sustainable travel — eco-friendly practices, carbon neutrality, you name it. The travel industry is responding with more and more sustainability initiatives.
Korea's hotel scene is no exception. Last March, the government amended the Resource Recycling Act, banning free single-use amenities at accommodations with 50+ rooms. Many hotels seized the moment — rolling out green services and turning them into marketing opportunities.
Environmental protection and sustainability are no longer optional. Hotels are adapting accordingly.
Hotels hold the key to sustainable travel
So what do travelers actually think about eco-friendliness and sustainability?
Booking.com runs an annual survey on sustainable travel, covering 34 countries including Korea. This year's 'Sustainable Travel Report' confirms that global travelers' interest in sustainability remains strong.
Korean travelers are aligned. 78% of Korean respondents said environmental considerations matter when they travel.
But there's a catch: travelers also feel powerless when sustainability isn't baked into the experience.
42% of Korean respondents said there's no point trying to be sustainable if the destination or accommodation doesn't support it. In other words, travelers need destinations and hotels to move first.
And 43% believe the travel industry (suppliers) holds the key to going green. Consumers can only do so much on their own — hotels, airlines, and other suppliers need to lead.
Eco-friendly services: what are Korean hotels doing?
Travelers' environmental expectations of hotels are rising. They're looking for products and services that actually help them travel sustainably.
Several Korean hotels are already rolling out green services — and guests are responding well. What kinds of services are they offering?
👉<Sustainable travel is in hotels' hands>
💡 Hospitality Trends
Domestic travel sentiment drops back to pre-COVID levels
After years of overheated domestic travel post-pandemic, sentiment has cooled back to pre-COVID levels, according to new analysis. Consumer Insight's 'Weekly Travel Behavior and Plans Survey' shows consumers' willingness to spend on travel has been declining for over a year.
Looking at spending intentions: the share of people willing to spend more on domestic travel dropped from 35% in 2019 to 27% in 2020. It peaked post-pandemic — 47% in 2022, 43% in 2023. But this year (Jan–Apr), it plunged back to 36%, blamed on inflation and broader economic anxiety.
Actual spending is also down. In April 2024, average domestic travel spending per person was ₩78,000 — up 8% from 2019. But adjusted for consumer price inflation (15%, per Statistics Korea), real travel spending has actually declined.
Fewer people are even planning trips. The domestic overnight travel intention rate (next 3 months) has been steadily dropping over the past year. It hit a low in February (66.4%), rebounded slightly since, but remains about 5 percentage points below last year's levels.
Consumer Insight says "domestic travel is shifting from overheated to cooling — right on the edge." In a shrinking domestic market, differentiation and smart sales strategies will matter more than ever.
👉<Full story>
⌨️ Keyword News
1️⃣ Q1 accommodation trends 👉[full story]
TL;DR: Q1 performance improved across accommodation types — except pensions
The story: According to Yanolja Research, Q1 2024 saw overall improvement in accommodation performance compared to the same period last year — except for pensions. 3-star-and-up hotels posted the highest RevPAR growth. Pensions were the only segment in decline.
Outlook? Q2 is expected to see better conditions overall, driven by inbound demand (especially Chinese tourists) and domestic spring travel.
2️⃣ Short-term rental market 👉[full story]
TL;DR: Weekly rentals are booming
The story: The ultra-short-term rental market (weekly rates) is gaining traction. If occupancy holds up, landlords can earn more than traditional monthly leases. As of April, there were 21,000 short-term rental listings nationwide — more than triple last year's count.
Who's renting? 70% of listings are in the Seoul metro area. The top reasons for renting: business trips (40%) and leisure/vacation (25%).
3️⃣ Travel live commerce 👉[full story]
TL;DR: Overseas travel packages are selling big on live commerce
The story: Q1 2024 live commerce sales of overseas travel hit ₩19 billion — up 282% year-over-year. Average sales per broadcast and viewer counts also surged.
Why? Travel companies are expanding beyond cookie-cutter packages into semi-packages, premium packages, and curated programs — pulling in younger audiences.
4️⃣ MICE bleisure 👉[full story]
TL;DR: MICE industry eyeing bleisure travelers
The story: Bleisure — mixing business and leisure — is emerging as a purple ocean in the MICE market. Bleisure travelers stay longer and spend more, creating bigger economic impact.
Outlook? A Hilton survey found 7 in 10 people are willing to extend business trips to add vacation time. Bleisure is driven by people in their 20s and 30s, suggesting long-term market potential.
5️⃣ Tourism development index 👉[full story]
TL;DR: Korea ranks 14th out of 119 in WEF Tourism Development Index
The story: Korea placed 14th globally in the World Economic Forum's '2023 Travel & Tourism Development Index.' In Asia-Pacific, Korea ranked 4th — behind Japan, Australia, and China.
The breakdown? Korea topped the region in ICT-enabled travel (search, booking, service access). But it scored poorly on openness (visa policy) and service infrastructure.