Wedding Postponed and Event Canceled... Hotel Industry Sighs
[Asia Economy Reporter Yuri Kim] Since the implementation of Level 4 social distancing measures in the Seoul metropolitan area, scheduled events at hotels have been consecutively canceled, and most weddings have been postponed, leaving banquet halls empty. Food and beverage establishments such as buffets are also seeing a large number of cancellations for reservations after 6 p.m., causing significant damage during the peak summer season.
◇ "Banquet hall events from 30 to 0"
According to the hotel industry on the 16th, a luxury hotel A in Jung-gu, Seoul, has had all 30 scheduled events for this week and next week canceled. Of the seven planned weddings, only three proceeded, and the remaining four were postponed. A hotel official stated, "With the sudden restriction allowing only up to 49 people within the family for ceremonies, more than half of the planned weddings were postponed, and the remaining three are proceeding reluctantly." A representative from Hotel B said, "Most weddings have been postponed," adding, "During the Level 4 social distancing period, there are essentially no weddings."
Since gatherings of three or more people are restricted after 6 p.m., cancellations are also occurring at buffets and similar venues. A representative from Hotel C explained, "For reservations of four people, there have been inquiries about splitting tables into groups of two, but since this is not allowed in principle, cancellations are being processed." A representative from Hotel D lamented, "The hotel bar had not been able to operate properly due to the 10 p.m. closing restriction, but with the easing to midnight, we thought business would pick up, but now the situation has deteriorated again."
◇ "Cautious about summer peak season promotions"
Regarding accommodations, inquiries about cancellations continue, but actual cancellations remain minimal, according to the hotel industry. A representative from a hotel in Jeju said, "When cancellations occur, they are quickly filled by other reservations," adding, "Unless there are group bookings, the impact is not significant." A hotel representative in Sokcho also said, "The number of cancellations is similar to that of a normal peak season," and "It seems people are still observing the situation."
However, complaints have been raised about cancellation penalty policies varying by hotel or booking method, forcing some to proceed with their vacations. When customers book directly through the websites of luxury hotels in the metropolitan area, they can generally receive a 100% refund without penalty from three days to one day before the reservation date, but bookings made through accommodation apps or platform operators must follow each site's policies.
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E, an office worker who planned a summer vacation in late this month, said, "Since the trip includes children, I wanted to cancel, but seeing that the cancellation penalty for accommodation had already exceeded 50%, I decided to go ahead with it," and pointed out, "It is necessary to improve the situation where individuals bear cancellation penalties without clear standards even under Level 4 social distancing."
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