South Korea Luxury Hotels Market Share, Size, Growth, Trends: By Type: Business Hotels, Airport Hotels, Suite Hotels, Resorts, Others; By Category: Chain, Independent; Market Dynamics: SWOT Analysis, Porter’s Five Forces Analysis; Competitive Landscape; Key Trends and Developments in the Market; 2024-2032

South Korea Luxury Hotels Market Outlook

The South Korea luxury hotels market size reached a value of more than USD 2.6 billion in 2023. The South Korea luxury hotel industry is expected to grow at a CAGR of 5.60% between 2024 and 2032, reaching a value of USD 3.6 billion by 2032.

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Key Trends in the South Korea Luxury Market

Improved Online Advertising and Marketing, Along with Rising Disposable Incomes are Majorly Driving the Luxury Hotel Market in South Korea

The development of a strong brand identity and a rise in online advertising spending are two benefits that the world's luxury hotel industry tremendously benefits from. More visitors are preferring to enjoy a luxurious lifestyle while on vacation or over the holidays because they find it to be wonderfully relaxing and peaceful. This is becoming more popular among the elderly and newlyweds, who regard their vacation as a once-in-a-lifetime opportunity. All of this might be connected to how the main demographic and potential guests perceive luxury hotels. Additionally, high disposable income, ease of online booking services, and high living standards further motivate people to spend on such recreational activities and hobbies, thereby bolstering the growth of luxury hotel market.

Expansion of the Travel and Tourism Sector Due to the Global Popularity of BTS

The expansion of the travel and tourism sector as well as shifting standards of living have fueled market trends for luxury hotels to increase steadily. Luxury hotel demand varies by property type and is impacted by elements including location, size, and on-site properties. A big aspect driving the demand for luxury lodgings is the hosting of sporting events by a city or nation. Luxury hotels are frequently booked by sports teams and fans travelling from various locations to see the competition, which causes a spike in reservations. The boy band BTS performed for thousands of fans free of charge at the Busan Asiad Main Stadium with some of their greatest hits. The prices of hotels spiked as soon as the official notification came out. The installation of online hotel booking apps such as Yanolja spiked during BTS' concert as thousands of fans from around the globe went to attend the concert in Busan, South Korea.

Provision of High-End Tailor-made Services and Surge of Pet-Friendly Hotels to Propel the Luxury Market Growth in South Korea

In addition to offering luxurious accommodations, luxury hotels also provide a variety of other amenities, such as a spa, a gym, a bar, and other services that are specifically customised for and comfort of their guests. To set themselves apart from the competitors, a few of these hotels additionally provide personal loungers and a private garden or space on the beach. Progressive trends in the luxury hotel sector are the result of rising leisure travel preferences and changes in living standards.

Moreover, with the country’s booming pet market, many luxury hotels are now transforming into pet-friendly hotels. Many offers residence-style accommodation with various facilities such as a kitchen, providing a home-like ambience with pet trays, bowls, waste bags, pee pads, and other necessary items free of cost. With the increasing number of single-person households in South Korea, the percentage of pet adoption by the unmarried population is increasing steadily.

Sustainable Practices in Luxury Hotels to Augment the Market Growth

Several luxury hotels in South Korea are now keeping up with consumer demand for living in a sustainable way. Hence, hotels such as the JW Marriott in Seoul provide visitors with an unrivalled vantage position from which to see Seoul because it is situated in the city's famed shopping and entertainment area, Dongdaemun. They attempt to cut energy and water consumption with the Leadership in Energy and Environmental Design Gold certification, accelerate our development, and evaluate their performance. Similarly, InterContinental Seoul COEX in Gangnam has access to business, recreation, and the DFS Casino with views of the Han River. They track, measure, and analyse their carbon footprint while enhancing the visitor experience.

Market Analysis

Based on type, the South Korea luxury hotels market can be segmented into business hotels, airport hotels, suite hotels, and resorts, among others. On the basis of category, the luxury hotel market of South Korea is divided into chain and independent.

• Hotel Lotte Co., Ltd.

• Grand Hyatt Seoul

• Conrad Hotels & Resorts

• Hanwha Hotels & Resorts

• Oakwood Premier

• Pyeongchang Alpensia Resort

• Josun Hotels & Resorts Inc.

• ACCOR SA

• Others

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Market Share by Type

The South Korea luxury hotels market is bifurcated into business hotels, airport hotels, suite hotels, and resorts, among others. Travel and tourism in South Korea have skyrocketed ever since BTS became a global sensation. People have started listing South Korea as their dream destination, shifting their preference from European countries and other western destinations which has greatly aided the growth of the luxury hotels industry in South Korea. 

The government and several corporate entities organise some national and international events. Such gatherings frequently feature well-known and renowned guests, and the hosts go over and beyond to ensure that everything is perfect for their stay. In these situations, people only choose luxury hotels because of all the perks they provide. This might potentially boost the market share of luxury hotels during the forecast period.

Market Share by Category

Independent hotels primarily benefit from being more individualised and frequently catering to a particular target market. On the other hand, they are more costly and elite. Independent hotels take pleasure in their individuality, as opposed to chains, which are constructed with the objective of providing a standard luxury, including uniform style and quality standards wherever a visitor stays worldwide.

Independent hotels focus on the individual guest, attempting to anticipate their wants, and going above and beyond when it comes to customer service. To keep track of their guests' interests and better adapt their offerings, especially for frequent visitors, they typically construct guest profiles. They have a competitive advantage because of this customised approach and knowledge of their customer's preferences. Chain hotels, on the other hand, have exceptionally high standards of service, but they often take a more standardised approach to providing for their guests, attending to their needs as they occur and making sure to provide professionalism and high-quality service throughout the chain hotels. Chains hotels provide more affordable prices and an impression of dependability that will entice a larger target market and drive the growth of the luxury hotel market in South Korea.

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Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.