"Let's Go to the Hotel"...Luxury First Birthday Parties Become the 'Default' for Parents, Even at 10 Million Won and Fully Booked

Luxury Hotel First Birthday Parties on the Rise

Despite the ongoing trend of declining birth rates, the market for first birthday parties at luxury hotels is actually experiencing growth. Analysts attribute this to a consumption structure where, even though the number of children is decreasing, spending and the significance placed on each child are increasing.

Lotte Hotel Seoul exterior view.

As premium first birthday party packages that combine banquet hall rentals with accommodation, photography, and experience programs become more widespread, concerns have been raised that the gap in celebratory spending between different social classes is widening.

According to the hotel industry on January 11, reservations for first birthday parties at major five-star hotels in Seoul increased by 20 to 30 percent compared to the previous year. At Grand InterContinental Seoul Parnas, the number of premium first birthday parties rose by about 30 percent, and as demand for small banquets of 10 to 40 people grew, reservation inquiries are now being made up to six months in advance of the event date. The Westin Seoul Parnas is also responding to this demand by offering exclusive packages that include a one-night stay, a first birthday table, a photo table, a projector, and a professional host.

The cost of a first birthday party at a luxury hotel starts from several million won for small-scale banquets of around 10 people, and large banquet halls for more than 40 people are priced around 10 million won. Despite the high prices, weekend dates often get fully booked as soon as reservations open. Getty Images

Lotte Hotel Seoul also saw a roughly 20 percent increase in first birthday party reservations. At the Chinese restaurant Dorim, sales from first birthday parties between January and September last year rose by 34 percent compared to the same period the previous year. The Westin Chosun Seoul also recorded a 30 percent increase in reservations during the same period. Industry experts believe that as the number of newborns declines, the trend of "investing more in each child" is spreading, and the small luxury trend of pursuing everyday premium experiences is now reflected in the first birthday party market as well.

This premium demand is also evident in the pricing. The cost of a first birthday party at a luxury hotel starts from several million won for small-scale banquets of around 10 people, while large banquet halls for more than 40 people are priced at around 10 million won. Despite the high prices, weekend dates often get fully booked as soon as reservations open. As more families have only one child, there is a growing demand to make the first birthday a "memorable experience."

Changes in consumption are also clear in the infant and children's products market. According to an analysis by Lotte Members of transaction data from about 17 million people, the sales share of premium products-those in the top 25 percent price range among infant and children's goods-increased from 58.9 percent in 2024 to 63 percent last year. In contrast, sales of general products stagnated or slightly declined during the same period.

First Birthday Party. (This photo is not directly related to the article.) Pixabay Pixabay

Some have expressed concerns that the spread of premium-focused celebratory spending is exacerbating polarization based on income disparities. According to national statistics, in the third quarter of last year, households in the top 20 percent income bracket spent an average of 344,000 won per month on entertainment and cultural activities, about 6.4 times more than households in the bottom 20 percent (54,000 won). This indicates that the gap between social classes is widening not only in spending on celebrations and leisure but also in expenditures related to children.

Industry experts expect the consumption structure of investing more in each child to continue for the time being. However, there are also calls for public support, such as childcare and care services, to be provided alongside the development of premium celebratory spending that enhances family satisfaction, so that the consumption gap does not lead to social discord.