When Monthly Household Income Rises 8%, Hotel Bingsu Prices Increase by 50%

Hotel Bingsu Price Exceeds 100,000 Won for the First Time
Hotel Says Business Is Close to 'Zero (0)'
"Hotel Should Set Price Limits Themselves"

The price of premium hotel bingsu in South Korea has surpassed 100,000 won. With the formation of a ‘concrete demand base’ centered on the MZ generation (Millennials + Generation Z), price increases are expected to continue in the future. As a reflection of our society born from the premium consumption trend, experts suggest that both consumers and sellers need to restrain themselves in terms of supply and demand.

Jeju Apple Mango Garden Bingsu to be introduced by Four Seasons Hotel Seoul starting next month.
[Photo by Four Seasons Hotel Seoul]

According to the industry on the 19th, the Four Seasons Hotel will sell bingsu made with premium Jeju-grown apple mangoes for 126,000 won starting next month on the 1st. This is the first time since the hotel industry began offering high-priced bingsu in 2011 that the price has exceeded 100,000 won. Previously, the Four Seasons Hotel sold the ‘Golden Jeju Apple Mango Bingsu’ with a gold rim for 96,000 won last year, the most expensive in the industry.

Other hotels are also expected to start selling bingsu at higher prices than last year. Considering that hotels raised bingsu prices by about 30-50% compared to the previous year last year, prices this year are expected to exceed 100,000 won across the board.

Lotte Hotel sold apple mango bingsu for 88,000 won last year, Shilla Hotel for 83,000 won, and Westin Chosun for 72,000 won. These hotels are reportedly coordinating prices and plans to sell bingsu as early as the end of this month.

The high-priced bingsu, known as a small luxury trend, is credited to Hotel Shilla as the originator. It started in 2011 as part of a win-win initiative with Jeju apple mango farms. At that time, this relatively high-priced bingsu, priced around 42,000 won, gained steady demand and popularity, prompting competing hotels to enter the market, according to industry sources.

The hotel industry explains that since apple mango bingsu originated from the initial purpose of coexisting with related farms, the profit margin is virtually ‘zero (0)’. A hotel industry official said, "For quality maintenance, sales were limited to about 200 units per day last year," adding, "To make a profit, a certain sales volume is necessary, but with high prices and sales limits amid high inflation, there is practically no profit."

However, recent price increases are said to be excessive even considering inflation rates. Compared to household income, the rate of increase is even more pronounced. According to Statistics Korea, the average monthly income of urban workers for a three-person household was 6.72 million won last year, up only 8.4% from 6.2 million won the previous year. Meanwhile, the bingsu price increase rate soared up to 50%. As a result, the price of a single dessert bingsu per day has reached a level comparable to the average monthly communication expenses per household (including single-person households) of 128,167 won.

Hotel bingsu price increases are expected to continue in the future. This is because the demand base is firmly established around the MZ generation, and sales volume is also showing an increasing trend. Professor Heo Kyung-ok of the Department of Consumer Life and Culture Industry at Sungshin Women’s University advised, "If consumers participate in consumption despite price increases, there is no law preventing the emergence of 300,000 won bingsu in the future," adding, "To prevent excessive inflation, individuals need to restrain themselves by not buying and not eating."

Voices are also emerging that sellers, i.e., hotels, should limit price increases themselves. It is pointed out that the burden of high inflation should not be passed on to consumers under the pretext of rising costs. Professor Lee Eun-hee of the Department of Consumer Studies at Inha University said, "The trend of bingsu price increases can be seen as a result of riding on the experiential consumption of the young MZ generation," and added, "Hotels need to exercise social responsibility and refrain from excessive price hikes considering the recent difficulties in household economies."

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