"Peak Season" December Booking Rate Drops Below Half
Vacancies Increase, Banquet Hall Reservations Postponed
Quiet Marketing with In-Room Packages
After the social distancing level was raised to Level 2 in the Seoul metropolitan area, the Hongdae area in Mapo-gu, Seoul, was quieter than usual on the first weekend, the 29th. Photo by Moon Honam munonam@
[Asia Economy Reporter Seungjin Lee] The hotel industry is facing deep concerns as confirmed cases of the novel coronavirus infection (COVID-19) have surged explosively ahead of the year-end peak season. The Christmas reservation rate, the busiest time of the year, is also far below last year's level.
According to the hotel industry on the 30th, the December room reservation rates at major hotels in Seoul, such as Shilla and Lotte Hotel, were found to be less than half compared to the previous year. December is generally a time when room reservation inquiries increase due to winter vacationers and various year-end events, but recently, inquiries have sharply dropped as COVID-19 cases surged.
Although it is one month before Christmas, many rooms remain vacant during the Christmas week. This is the exact opposite of last year when most rooms were fully booked a month before Christmas. The Christmas period is considered the busiest time of the year in the hotel industry, to the extent that those who fail to book rooms often pay a premium through secondhand trading sites to secure a room.
As COVID-19 cases surge, a significant number of customers are postponing year-end banquet hall reservations to next year. A hotel industry official said, "We are receiving inquiries from groups and companies who had booked year-end events but want to postpone them to next year and change them to New Year's events," adding, "Recently, many customers have been asking whether food and beverage outlets such as buffets will even be operating."
On the other hand, hotel reservation rates in major tourist destinations such as Jeju Island remain similar to last year despite the COVID-19 situation. The December room reservation rate at major hotels in Jeju is around 80-90%. Most rooms were fully booked during the Christmas week. This is because COVID-19 cases surged mainly in the metropolitan area, and this year's Christmas falls on a weekend, coinciding with vacation demand.
The hotel industry has launched quiet marketing efforts, such as strengthening packages that can be enjoyed inside rooms. Conducting large-scale promotional events amid the surge in COVID-19 cases could backfire. The plan is to target customers who want to spend a special time at year-end but are concerned about safety issues.
Seoul Shilla Hotel is introducing the "Merry Winter" package, which allows families to watch the 'Madeleine's Christmas' book concert together in their rooms. Considering the increase in customers enjoying home parties, they also launched two Christmas-limited special cakes, "Snowflake Wishes" and "White Holiday."
Glad Hotel has launched the "Have a Company Dinner at the Hotel" promotion, where groups of 6 to 12 people can enjoy private gatherings and company dinners in suite rooms with hotel chef cuisine and alcoholic beverages. This was designed to allow dining together in rooms, given that group dinners in open spaces are currently not possible. Additionally, Lotte Hotel, Shinsegae Chosun Hotel, and others have consecutively released Christmas-limited cakes to attract year-end home party customers.
A representative of a luxury hotel in Seoul said, "Compared to last year, the Christmas atmosphere is missing this year," and added, "After missing the summer vacation season, we are now at risk of losing the year-end peak season as well, but due to the COVID-19 situation, we cannot conduct large-scale promotional activities, which is frustrating."
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