The "Hotel Reservation" Special Is Special... But Luxury Hotels Can't Laugh

[Asia Economy Reporter Kim Yuri] Although the hotel industry experienced a special demand surge due to Seollal and Valentine's Day, the situation remains grim. Restrictions are still in place, such as reservations being limited to within two-thirds of the total number of rooms, in accordance with the government's social distancing guidelines.

◆ Reservations exceed 90% at major tourist destinations = According to the industry on the 2nd, some luxury hotels in major tourist destinations such as Gangwon, Busan, and Jeju have already surpassed a 90% reservation rate during the Seollal holiday period, showing strong popularity. With the ban on gatherings of five or more people, including immediate family members, continuing during the holiday, the number of family unit reservations of four or fewer has increased. Since both overseas and domestic travel are restricted, more people are choosing hotel stays as a form of compensation.

Despite this rare surge in demand, the hotel industry's outlook is bleak. Since only up to 66.6% of total rooms can be reserved, even near-full occupancy translates to an actual reservation rate slightly above 50% of total rooms. A luxury hotel official said, "Although room reservations have exceeded 90% mainly in some tourist areas, the actual rate is around 50%, making it incomparable to peak seasons in normal years," adding, "There are many considerations such as quarantine measures due to concerns about COVID-19 infections."

Reservation rates in the Seoul metropolitan area and other capital regions are below half. Due to strict social distancing and nationwide activity restrictions caused by COVID-19, promotions emphasizing 'hotel stays' are also difficult to implement.

◆ Coping with peak season through packaged food and beverage services = Instead, the hotel industry is focusing on packaged food and beverage services such as drive-thru meals and to-go (TO GO) packages for Seollal. This targets the 'home-cation' crowd who spend the holidays quietly with their families. Lotte Hotel recently expanded its drive-thru menu from single items to fine dining course meals in preparation for the Seollal peak season. From the 8th to the 14th, it will hold the 'Seollal Special Drive-Thru,' offering a total of 13 menu items?10 more than last Chuseok?allowing customers to choose according to their preferences. Lotte Hotel World will introduce the 'Delight Box,' which transfers traditional holiday foods into lunchbox form. Lotte Hotel Seoul's drive-thru product sales in December last year grew fourfold compared to the previous month.

Hanwha Hotels & Resorts also launched a to-go (TO GO) holiday food product created in collaboration with Plaza Hotel chefs and nationwide traditional family housewives. The menu was developed by quantifying traditional recipes from ancestral households by hotel chefs.