Following the Buffet, Cakes Too... Luxury Hotels Raise Prices on Limited Edition Items One After Another

A Cake Costs Over 200,000 Won... Reservations Sold Out and Shortage Crisis
"More Expensive Than Buffet Prices" Complaints... "Simple Comparison with Hotel Cakes Is Difficult" Rebuttal

InterContinental Parnas Merry-Go-Round Cake. Photo by InterContinental Parnas

[Asia Economy Culture Young Intern Reporter] Domestic major hotels, which have caused sold-out crazes every year-end by unveiling high-priced limited edition cakes, have raised cake prices ahead of the year-end season. This is due to rising factors such as raw material and ingredient costs.

According to the hotel industry on the 29th, the Grand Intercontinental Seoul Parnas introduced 11 types of cakes for this year’s year-end. They are sold in limited quantities of 30 each throughout December, and must be pre-ordered one week in advance. Among them, the most expensive cake is the 'Merry-Go-Round' cake, inspired by a carousel, which is delicately handcrafted by chocolatiers for over 8 hours. The price is 200,000 KRW.

The 'Wishing Tree,' a tree-shaped cake presented by The Westin Chosun Seoul, costs 140,000 KRW. In addition, the 'Happy Jay Santa,' featuring Santa’s face, is priced at 115,000 KRW, and the wreath-shaped cake 'Blissful Wreath' costs 85,000 KRW. Considering that two tree-shaped cakes with similar concepts made last year were priced at 99,000 KRW and 125,000 KRW respectively, these prices have increased. Currently, the Christmas Naver reservation quota is closed, leaving only phone orders available.

The Grand Hyatt Seoul’s Christmas gift-shaped cake is priced at 125,000 KRW. Compared to last year’s treasure box chocolate cake (48,000 KRW), this year’s price has risen 2.6 times. Lotte Hotel Seoul’s 'Bear Chocolat House,' shaped like a gingerbread house, is priced at 120,000 KRW, a 25% increase from the same product last year (90,000 KRW). The price of the 'Noel Cake' also rose by 15.3%.

As the prices of large hotel Christmas cakes rise one after another, some voices say, "Won’t it approach 300,000 KRW?" In fact, the 'White Tree Special Cake' introduced by Chosun Palace last year was as high as 250,000 KRW but sold out early. Because of this, some products are even more expensive than a buffet meal at a top-tier Seoul hotel, which costs nearly 200,000 KRW per meal.

Three types of Christmas cakes from The Westin Josun Seoul. Photo by The Westin Josun Seoul

Regarding this, the hotel industry states that "hotel cakes cannot be simply compared by price." They also say that price increases are inevitable as the costs of raw materials such as flour, milk, and sugar have all risen simultaneously. A hotel official emphasized, "Raw material costs have increased 1.5 times compared to last year, and Christmas cakes require more ingredients and long hours of delicate handcrafting to capture the splendor in the cake."

However, consumer reactions to hotel Christmas cakes are mixed. Many feel burdened because the prices are significantly higher than those of regular bakery cakes. University student A said, "At the end of the year, Instagram is filled with hotel cake certification shots," adding, "I want to buy pretty cakes, but the prices are too expensive." On the other hand, office worker B said, "Saving money to buy a hotel cake once is not a bad idea," and added, "Although expensive, I think it’s worth it for the hotel brand value."