HVS has conducted a survey about the COVID-10 pandemic and its unprecedented impact on the South Korea hotel market.

The survey is divided in two sections, how the properties in South Korea is reacting in response to drop of overall demands throughout contingency plans and viewpoint of how experts in the hotel operations are recognizing sign of recovery of pandemic as well as their outlook of the market in the future.

Survey Questions

Contingency Plans

• The level of effectiveness for each contingency measure
• Other contingency measures being undertaken
• Contingency measures being undertaken from the Corporate Office to support Hotel Owners
• The period of implementing the contingency measure
• Implementing promotions to drive Rooms & F&B sales
• Implementing new F&B business models
• Experience of increase in staycation business

Sign of Recovery & Market Outlook

• An indication to sign of recovery
• A recovery period by each market segment
• Group booking status
• A recovery period by each source market
• The market's dynamic between pre- and post-COVID-19

Key Takeaways

• Almost 80% of the sample hotels are fully opened
• Contingency measures are planned for an average of 6.4 months. Most respondents answered 6 months.
• 50% of respondents'’ corporate offices offer to defer FF&E programs and PIPs
• Designing room package for staycation driving sales for both rooms and F&B was found most effective among initiatives properties are currently implementing.
• Most hoteliers believe that a travel ban lift is a priority to welcome new and return business.
• Leisure demand is expected to partially recover the fastest in less than four months in comparison to other segments. 85% respondents expected the full recovery of leisure demand to be achieved in less than 12 months.
• 65% of properties witnessed cancellations of group bookings due to COVID-19.
• Most respondents’ outlook for the Domestic market is a fast recovery within 6 months, followed by short haul market including China.
• As a direct impact of COVID-19, lower performance in both occupancy and average rate is expected by most of respondents.

Respondents

Respondents by Hotel Positioning

Source: HVS

Over 90% of the properties in the survey sample are in the 5-star positionings.

Respondents by its Opening Status

Source: HVS

It is found that almost 80% of the survey sample are fully opened for operation. Almost 35% of the properties responded to the survey are located within Seoul and over 70% of the properties responded to the survey are in Seoul and its metro area. All hotels in the sample survey are branded hotels.

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