December Worse Than November... Year-End Boom Missing in Hotel Industry

Drive-Thru Expansion and Other Makeshift Measures
Concerns Over Service Identity Damage

Hotel room stock photo.

[Asia Economy Reporters Minyoung Cha, Seungjin Lee] With the nationwide ban on gatherings of five or more people, the hotel industry finds itself in a dilemma. Amid low hotel room occupancy rates and difficulties in operating food and beverage (F&B) services?which had been a strong point during social distancing level 2.5?hotels have resorted to expanding delivery of key menu items as well as drive-thru services as a last-ditch effort.

According to industry sources on the 22nd, major hotels in the Seoul and Gyeonggi areas are devising countermeasures in anticipation of a decline in restaurant customers. Reservations with five or more guests are being individually contacted and canceled. The increased orders for ingredients, placed to accommodate year-end gatherings such as family meetings, breakfast meetings, and year-end parties, have become a headache. According to Hanwha Hotels & Resorts, reservations for groups of five or more account for about 10-15% of the total.

An industry insider said, "Some restaurants popular for year-end gatherings have up to 30% of customers in groups of five or more. This is the first time December has been more difficult than November. We are trying various methods such as delivery to overcome the crisis, but the situation is bleak."

One hotel that remodeled its top-tier suite rooms to accommodate small team dinners has stopped promotions because it is not profitable with groups of five or fewer guests.

Some hotels have launched takeout delivery services and premium home meal replacements (HMR) as a last resort but face many challenges. Lotte Hotel recently expanded its drive-thru lunchbox sales from daytime to late-night hours.

Shinsegae Chosun Hotel sells jjambbong and jajang meal kits and "Peacock Chosun Hotel Kimchi" at convenience stores. Glad Hotel opened "Glad Shop" on Naver Smart Store to sell key hotel menu items as easy-to-prepare meals. While consumers have responded positively to being able to enjoy luxury hotel food at convenience stores, there are concerns that this may undermine the identity of luxury hotels, which provide both service and food together.

This content was produced with the assistance of AI translation services.