"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 per child and the significance attached to each child are both increasing.

Lotte Hotel Seoul exterior view.

As premium first birthday party packages-which bundle banquet hall rental, accommodation, photography, and experiential programs-become more widespread, concerns have been raised that the gap between social classes in commemorative spending is also widening.

According to the hotel industry on January 11, reservations for first birthday parties at major five-star hotels in Seoul increased by 20-30% in the previous year compared to the year before. At Grand InterContinental Seoul Parnas, the number of premium first birthday events rose by about 30%, with growing demand for small banquets of 10 to 40 people leading to reservation inquiries as early as six months before the event date. The Westin Seoul Parnas is also responding to this demand by offering exclusive packages that include one-night stays, traditional birthday tables, photo tables, projectors, and professional emcees.

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% 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% compared to the same period the previous year. The Westin Chosun Seoul also recorded a 30% increase in reservations during the same period. Industry experts believe that, as the number of newborns decreases, the trend of 'investing more in each child' is spreading, and the pursuit of everyday premium experiences-known as the 'small luxury' trend-is also reflected in the first birthday party market.

This premium demand is also evident in 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 around 10 million won. Despite these high prices, weekend dates often get fully booked as soon as reservations open. As more families choose to have only one child, there is a growing desire to make the first birthday a memorable experience.

Changes in consumption are also evident in the infant and children's products market. According to Lotte Members' analysis of transaction data from about 17 million members, the sales share of premium products-those in the top 25% price range among infant and children's goods-increased from 58.9% in 2024 to 63% last year. In contrast, sales of standard products either stagnated or declined slightly 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 commemorative spending is deepening polarization based on income disparities. According to national statistics, in the third quarter of last year, households in the top 20% 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% (54,000 won). This indicates that the gap between social classes is widening not only in commemorative and leisure spending 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, they also emphasize that, while premium commemorative spending should evolve to enhance family satisfaction, public support for childcare and care services must be provided in parallel to prevent consumption gaps from leading to social discord.