Sweet Rooms Priced in the 200,000 Won Range Amid COVID Recession... Hotel Industry Offers '90% Discount'

Luxury Hotels Hit Hard by COVID Recession
Weekday Room Occupancy Rates in the 10% Range
Better Than Empty Rooms... Customer-Friendly Changes
Super Discounted Deals Priced at 200,000~300,000 Won Released

Hotel Lotte World Panorama

[Asia Economy Reporter Cha Min-young] Due to the increase in vacancies caused by the novel coronavirus infection (COVID-19), domestic luxury hotels have started offering discounts on suite rooms. They are discounting room rates by up to 90% and providing various benefits, selling the total price for less than half. With weekday room occupancy rates dropping to the 10% range, it is interpreted that they are targeting the demand from people in their 20s and 30s who had been deterred by the high price threshold of suite rooms rather than leaving empty rooms unused.

According to the hotel industry on the 16th, Lotte Hotel World in Jamsil, Seoul, is selling the 'Healthy House Package,' which allows guests to enjoy suite rooms on weekdays at prices discounted up to 90% off the regular price until the end of next month. The packages include the Superior Suite Room Package (290,000 KRW), Deluxe Suite Room Package (370,000 KRW), and Presidential Suite Room Package (500,000 KRW). The regular price of the cheapest Superior Suite Room alone is in the 800,000 KRW range, which is discounted by 90% and included in the package price. Additional benefits such as two club lounge passes, one minibar use, and health drinks are also included. The suite rooms are offered for under 100,000 KRW, with the remaining benefits added on.

The Grand Walkerhill Seoul is currently running a 'Hot Deal' event selling room packages including Deluxe Suite Rooms and Club Suite Rooms at a 35% discount off the regular price until the 18th. The product is available for weekday use until April 30. For the highest-priced product, the Club Suite Han River view room, the price is reduced by 160,000 KRW from the regular 470,000 KRW to 310,000 KRW. Park Hyatt Seoul is running a promotion offering a 30% discount on suite room upgrade fees. Benefits include one bottle of red wine, access to the fitness studio, infinity pool, and sauna.

Currently, the weekday room occupancy rate of domestic luxury hotels, including 5-star and first-class and second-class hotels, is estimated to be around 10%. Weekend occupancy rates are also only about 20-30%. Lotte Hotel recorded over 50,000 reservation cancellations even during the early spread of COVID-19, and more than 160 MICE (Meetings, Incentives, Conferences, and Exhibitions) event cancellations. Hotel Shilla also reported room occupancy rates of 20-30%.

Many have temporarily closed. Hilton Gyeongju has been temporarily closed since the 2nd of this month due to the impact of COVID-19. The famous restaurant 'Aria' at Westin Chosun Hotel Seoul is closed on weekdays, and the buffet 'La Seine' at Lotte Hotel Jamsil and 'Pierre Bar' at Lotte Hotel Seoul have also closed. Paradise City in Incheon has temporarily suspended weekday lunch service at 'On the Plate' and the strawberry buffet. The Korean restaurant 'Cheonji' at Jeju Shilla Hotel has also temporarily suspended lunch service.

A hotel industry official explained, "Since room occupancy rates have dropped significantly, this promotion targets the younger generation who hesitated to use suites due to the price barrier," adding, "The product was designed to allow people to enjoy various services of luxury hotels during a time when going out is difficult due to COVID-19."

Considering brand image and other factors, luxury hotels that had been reluctant to list their names on online travel agencies are now turning to online platforms. On the accommodation and travel app 'Yanolja,' a special discount chance event is underway, offering about 60-70% off all rooms at Shilla Stay, Hotel Shilla's business hotel brand. Exclusive special price products also include Paradise Hotel Busan and Hilton Busan. 'Yogi-ottae' has also launched a spring vacation (a portmanteau of spring and vacation) event including luxury hotel discounts of up to 90%.