Korean hotels introduced half-day packages for their survival

Due to the Covid-19 outbreak, Korean hoteliers are facing a severe financial crisis. To cope with the issue, they have broken their exclusiveness. Many hotels in Korea have started working on a new strategy to attract maximum customers. The strategy involves half-day packages for the customers to get their luxury deals in minimum input.

InterContinental Seoul COEX has started working on this strategy and introduced packages that don’t require overnight stay from the customers. Instead, they allow customers to get their exclusive facilities like the swimming pool by availing half-day deals. This half-day deal comprises of 12-hours that start from 8 in the morning. 

Another hotel named Millennium Hilton Seoul is also offering the same deal, but the duration is 8 hours instead of 12 hours. 

These day-deals are not much preferred by the Korean luxury hotels community. The two top of the list hotels, Grand Hyatt Seoul and Vista Walkerhill Seoul once experienced this day-deal strategy before, but they didn’t get the response as expected. However, due to the outbreak, hotels have already bear heavy losses, and they try to attract maximum community through these offers to balance their loss. 

According to the hotel associations, before this lock-down situation, there was a 63.3% occupancy rate in the hotels due to foreigners. However, this year, the rate has dropped to 10%. For example, one of the hotels has filled only 70 rooms out of 700 rooms with guests. 

One of the hotel industry experts said, “Hotels in areas like Jeju amd busan, which are resort areas, are most likely to recover the loss during the vacation season. However, the hotels in Seoul will have to bear the loss due to the negligible number of foreigners. So far, these half-day deals have somehow attracted young tourists to enjoy the luxuries at discounted rates.”

Unexpectedly, people love this new strategy, and InterContinental Seoul has extended their day-use offer till the end of August, which they have planned only for a limited period before. A hotel industry official said, “Although the luxury image of high-end hotels means a lot to them, this is the time to work with some new market strategies to overcome the loss that they have bear in the past few months.”

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