Luxury Goods and Hotel Buffets See Consecutive Price Hikes Amid Cost and Exchange Rate Pressures

Luxury Watches See Up to 9% Price Hike... Herm?s and Chanel Announce Increases
Luxury Hotel Buffets Also Raise Prices... High Exchange Rate and Labor Costs Directly Impact

With the start of the new year, price increases are becoming more pronounced, particularly for luxury watches and hotel buffets. As the burden of a high exchange rate and rising costs for raw materials and labor continues, not only luxury brands but also the hotel industry are adjusting their prices, increasing the financial pressure on consumers.

Rolex luxury watch brand store in Switzerland. Photo by Reuters Yonhap News

According to the retail industry on January 2, major luxury brands have raised their domestic retail prices, starting with Swiss luxury watch brands Rolex and Tudor.

Widespread Price Hikes Across the Luxury Industry... Watches and Bags See Consecutive Adjustments

The price of the Rolex Submariner Oyster 41mm increased by 5.7%, rising from 14.7 million won to 15.54 million won as of January 1. The Submariner Date Oystersteel and Yellow Gold 41mm model was raised by 7.4%, from 27.11 million won to 29.21 million won, while the Datejust 41 Yellow Gold model also saw a 7.4% increase, from 24.82 million won to 26.66 million won.

Tudor, a brand under Rolex, also adjusted its prices. The Black Bay 58 39mm steel bracelet model increased by 9.6% to 6.48 million won. Industry insiders point to the recent rise in gold prices as a key factor driving up the prices of watches and jewelry.

Luxury fashion brands have also announced upcoming price increases. Herm?s is expected to raise domestic product prices this month and has reportedly given advance notice of the January price hike to select customers. Chanel is also expected to increase prices for its bag products in January, following last year’s trend.

Louis Vuitton is also being mentioned as a brand that may adjust prices for certain products this month, while Belgian luxury brand Delvaux plans to raise the average price of all products sold in Korea by 3% starting January 19.

Luxury Hotel Buffets Raise Prices... Dining Out Becomes More Expensive

Lotte Hotel Seoul 'La Seine'. Lotte Hotel & Resort

This trend of price increases is also evident in the restaurant industry. Major luxury hotels in Korea have raised buffet prices, citing higher costs for imported ingredients due to the high exchange rate and increased labor expenses.

Lotte Hotel Seoul's 'La Seine,' operated by Lotte Hotel & Resort, raised its weekend dinner price by 2.5% from 198,000 won to 203,000 won starting January 1, and the weekend lunch price was also raised to 203,000 won. The Westin Seoul's 'Aria,' operated by Josun Hotels & Resorts, increased its weekend dinner price by 4% from 175,000 won to 182,000 won, and weekday lunch by 6.6% from 150,000 won to 160,000 won.

The Shilla Hotel Seoul's 'The Parkview,' operated by Hotel Shilla, will raise its adult weekend dinner price by 5% from 198,000 won to 208,000 won starting March 1. Four Seasons Hotel's 'The Market Kitchen' will also increase its weekend dinner price by 2%, from 195,000 won to 199,000 won.

An industry official from the hotel sector stated, "In a situation where cost pressures persist, these adjustments are unavoidable in order to maintain menu variety and service quality."