After the government designated substitute holidays, domestic travel rates dropped 7%p and average spending intentions fell by a staggering 34%p year-over-year, according to Consumer Insight.
⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting.
In This Issue
🏨 The long holiday paradox: why extended breaks hurt domestic tourism
💡 Why are profitable hotels going on the market?
⌨️ #ChatGPT #FlightBookingAlert #300KAccommodationVouchers #InboundTourismCrisis #ShortTermRentals
🏠 Industry Story
Local Governments Get Serious About Tourism
Did you take time off for the March 1st substitute holiday? Turns out these extended holidays are actually hurting domestic tourism. Recent analyses of the Lunar New Year substitute holiday showed surprising results. Longer breaks are having the opposite effect on domestic travel 😢
1️⃣ Internal Demand Slump: March 1st Holiday Hits Jeju Tourism Hard
2️⃣ Domestic Travel Not Just Stalling—It's Collapsing: Substitute Holidays Drive Overseas Exodus
📉 The Holiday Paradox: Domestic Tourism Contracts
Contrary to expectations that the Lunar New Year substitute holiday would energize domestic tourism, it actually boosted outbound travel demand while shrinking the domestic market.
According to Consumer Insight, domestic travel rates dropped 7 percentage points immediately after the substitute holiday designation, and average per-person domestic travel spending intentions fell by a staggering 34 percentage points year-over-year.
This is a complete reversal from 2022–23, when substitute holidays during the post-COVID "revenge travel" era boosted domestic trips. A 2023 article reported that each additional substitute holiday increased domestic travel spending by ₩431.8 billion. So what changed?
👉<Continue Reading>
💡 Hospitality Trends
Why Are Profitable Big Hotels Going on the Market?
The hotel industry is recovering thanks to growing international arrivals post-COVID, yet major conglomerates are selling off their upscale properties.
Recently, luxury hotels like Andaz Seoul Gangnam, Sofitel Ambassador Seoul, Novotel Ambassador Seoul Dongdaemun, and Le Méridien & Moxy Seoul Myeongdong have all hit the market. Lotte Group and Hanwha Group are also pursuing multiple hotel sales, and Shilla Stay Dongtan is preparing to launch its sale bid. Parnas Hotel Jeju in the Jungmun Resort Complex has already selected a sale advisor.
The story: Industry insiders believe this timing—when inbound tourism is recovering—is ideal for selling. Companies want to secure capital, focus on core businesses, and find new growth drivers. Hotel workers, however, are anxious about whether employment will be transferred. The article emphasizes the hope for smooth transitions without layoffs.
⌨️ Keyword News
1️⃣ Travel Booking Goes AI 👉[Full story]
TL;DR: Yanolja and KakaoTalk Gift join ChatGPT AI assistant Operator
The story: ChatGPT's newly launched AI assistant "Operator" now integrates services from Korean companies including Kakao's "KakaoTalk Gift" and travel/lodging platform Yanolja's booking features.
2️⃣ Flight Booking Alert on Foreign OTAs 👉[Full story]
TL;DR: Multiple issues reported with flight tickets purchased through overseas OTAs
The story: Airlines recently advised passengers to exercise caution when buying tickets through foreign OTAs. They specifically flagged Agoda, Kiwi.com, Gotogate, MyTrip, and BudgetAir—platforms with which they have no direct contractual relationship.
3️⃣ 300K Accommodation Vouchers in March 👉[Full story]
TL;DR: First "Korea Accommodation Sale Festa" of the year to boost regional tourism
The story: The "2025 Accommodation Discount Voucher" program aims to redirect overseas travel demand domestically and distribute travel timing across seasons. One million vouchers will be distributed in three waves—spring (March), summer (June), and fall (October). Vouchers issued for March are valid from February 28 to April 6 for accommodations in non-capital regions (excluding Seoul, Gyeonggi, and Incheon).
4️⃣ Inbound Tourism Crisis 👉[Full story]
TL;DR: Foreign visitors to Seoul and Jeju drop sharply
The story: Tourist arrivals—both domestic and international—to Seoul and Jeju have declined this year. Seoul faces political instability and issues like Google Maps unavailability. Jeju's image has been hurt by overpricing scandals. In response, the government has lowered its inbound tourism targets.
5️⃣ Short-Term Rental Lodging Business 👉[Full story]
TL;DR: Short-term rentals grow as Airbnb faces crackdown
The story: As the government intensified illegal vacation rental crackdowns last year, short-term rental platforms like 333M2, Live Anywhere, and Nkostay are expected to keep growing. Lodging businesses can't legally use residential or officetel units, but rental businesses can lease any type of property—regardless of building classification.