Hotels - South Korea

South Korea

Highlights

The Hotels market in South Korea is projected to experience a rise in revenue, with an expected value of US$8.21bn by 2024.
Moreover, it is anticipated to exhibit an impressive annual growth rate of 4.00% (CAGR 2024-2029), resulting in a projected market volume of US$9.99bn by 2029.
As for the number of users, the Hotels market is expected to reach 23.49m users by 2029, with user penetration expected to rise from 34.4% in 2024 to 45.7% by 2029.
Additionally, the average revenue per user (ARPU) is expected to be US$460.70.
When it comes to online sales, it is projected that 86% of total revenue in the Hotels market will be generated through online sales by 2029.
It is worth noting that, in global comparison, United States is predicted to generate the most revenue in the Hotels market, with a projected value of US$111bn in 2024.
South Korea's hotel market is thriving with the rise of luxury boutique hotels and increasing focus on providing unique experiences for guests.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Hotels market in South Korea has been experiencing significant growth and development in recent years.

Customer preferences: Travelers in South Korea are increasingly seeking unique and personalized experiences when it comes to accommodation. This has led to a rise in demand for boutique hotels, traditional Hanok stays, and themed accommodations that offer a more immersive and culturally rich experience.

Trends in the market: One of the notable trends in the South Korean Hotels market is the integration of technology to enhance customer experience. Many hotels are incorporating smart room features, contactless check-ins, and virtual concierge services to cater to the tech-savvy preferences of modern travelers. Additionally, there is a growing emphasis on sustainability and eco-friendly practices in the hotel industry, with many establishments implementing green initiatives to attract environmentally conscious guests.

Local special circumstances: South Korea's unique blend of traditional culture and modernity has influenced the Hotels market in the country. Hotels often reflect this fusion by combining traditional Korean design elements with contemporary aesthetics, creating a distinct ambiance that appeals to both domestic and international guests. The popularity of K-pop and Korean dramas has also had an impact on the hotel industry, with themed accommodations and packages tailored to fans of Korean entertainment.

Underlying macroeconomic factors: The growth of the tourism industry in South Korea, driven by an increase in international visitors and domestic travel, has been a key factor contributing to the development of the Hotels market. Government initiatives to promote tourism, infrastructure development, and international events hosted in the country have further boosted the demand for accommodation options. Additionally, South Korea's strong economy and rising disposable incomes have made travel and leisure activities more accessible to a larger segment of the population, stimulating the growth of the Hotels market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.