Airbnb held a vision forum in Seogwipo-si, Jeju under the theme of ‘Everywhere in Korea: Spaces, content, and people that encourage people to stay in the region’ and shared a blueprint for revitalizing regional travel. This year, the goal was to take a step deeper into revitalizing the local economy and travel ecosystem and participate in ‘regional revitalization’.
Airbnb: “You need a reason to stay in the area”
At the site, specific awareness of the problem and data were presented beyond a simple declaration. Along with the diagnosis that domestic travel shows a repetitive structure centered on specific regions, gourmet food, and hotels, the data pointed out the reason why people cannot stay in the region for a long time. Afterwards, based on surveys and cases from the Asia-Pacific region, it was emphasized that expanding local accommodations and strengthening local experience content were key conditions for revitalizing regional tourism.
Seo Ga-yeon, Airbnb Korea country manager, said, “Airbnb, which made major changes last year, including completely expelling accommodations that did not report their business from the platform, has been thinking deeply about the role it must play as a member of Korean society. As a result, we decided that the direction we want to focus on this year is revitalizing the region. People need a clear reason to stay in a region. When the ‘space’ they want to stay in, the ‘content’ that enriches the space, and the ‘people’ that fill it come together. “It creates a reason to stay in the region,” he emphasized.
This statement was also a message that ran through the entire Vision Forum. This is a proposal to look at the problem of domestic travel not simply in terms of transportation or price, but to look at it again from the perspective of “Why do you need to go and stay in that area?” To this end, Airbnb commissioned Embrain, a market research company, to share the results of a survey of 1,000 adults with travel experience in domestic regions over the past year.
The reality of Korean domestic travel… ‘Gourmet food and hotels, focused on specific regions’
The survey results were quite clear. Koreans’ domestic travel was particularly ‘uniform’ in terms of purpose, lodging, and destination.
What stands out the most is the purpose of the trip. 64.4% of respondents chose ‘gourmet food’ as their number one purpose for domestic travel. Nature and outdoor activity trips followed. On the other hand, participation in experiential programs was only 7.8%, and visits related to local content were only 3.9%. Ultimately, this means that many trips are centered around food rather than unique local experiences.
Accommodation types also showed similar patterns. The hotel/resort occupancy rate was overwhelmingly high at 70.0%, and shared accommodation was only 19.7%. The areas visited were also concentrated in specific tourist destinations such as Gangwon, Busan, and Jeju. An interesting exception was the preference for the Daejeon area among those in their 20s. Daejeon was ranked at the bottom overall based on visit preference, but ranked high among people in their 20s.
Manager Ga-yeon Seo emphasized, “In the case of Daejeon, the so-called ‘bread pilgrimage’ centered around the famous bakery Seongsimdang served as anchor content that moved the region. Like this, one attractive content unique to the region can change people’s footsteps and encourage them to stay.”
“It’s expensive, it’s far, and there’s nothing to do”… Reasons for hesitating to travel domestically
Why do domestic trips keep taking us to similar places? Looking at the survey results, the reason is relatively clear. Respondents ranked high travel prices (27.9%), travel distance and time required (27.8%), and lack of attractions and experience content (13.4%) as the first, second, and third priorities, respectively, as reasons that make them hesitate to travel domestically.
Ultimately, the underlying perception was that ‘it costs money, but the perceived value is low.’ If the focus is repeated on famous areas, specific restaurants, and specific hotels, prices rise, traffic congestion worsens, and consumers feel fatigued. This is why the incentive to choose domestic travel again is weakening.
Accommodation issues were also identified as a major constraint on domestic travel. 87.5% of respondents answered that accommodation conditions are important when planning a trip, but 92.5% of respondents said they had difficulties in the actual accommodation reservation process. Specific reasons included ‘low cost-effectiveness due to high rates compared to facilities’ at 54.1%, and ‘lack of rooms on weekends and peak seasons’ at 46.3%.
Because of these limitations, some travelers choose to stay in distant outlying areas or choose to reduce their trip to a day trip instead of staying overnight. There have also been cases of giving up on the trip itself. Ultimately, as the time spent in the area decreases, local consumption opportunities such as dinner or night tours also decrease.
The answer is ‘local accommodation’ and ‘local content’
With awareness of this problem, the alternatives that Airbnb emphasized at the Vision Forum are ‘local accommodation’ and ‘local content’. In order to revitalize the region, structural barriers that block regional travel must be resolved, and the key pillars of this are accommodation and content.
Manager Seo Ga-yeon said, “Respondents cited improving price competitiveness and service quality as tasks to strengthen domestic travel competitiveness, followed by ‘development of unique content and experiences for each region’ (42.4%),” and added, “One of the reasons for choosing shared accommodation was ‘because I want to experience local daily life in the local neighborhood’ (22.2%). This confirms the trend of recognizing accommodation as a base for experiencing the region, rather than just a place to sleep.”
He continued, “Awareness about remodeling empty houses and old houses was also positive. 85.7% of respondents answered that regionally regenerated accommodations using empty houses, etc., are helpful in revitalizing tourism. This means that old spaces in the region are not just objects of maintenance, but can become new assets. From this perspective, Airbnb is also planning to participate in the project to revitalize empty houses. We plan to start the project from the Jeju area.”
“The problem is supply, not demand”… Vacancies in domestic shared accommodation
One of the most impressive aspects of this survey was the gap between supply and demand surrounding shared accommodations. Although Koreans have already fully experienced the benefits of shared accommodations through overseas travel, they feel that there is a lack of options at home.
77.8% of respondents responded that there is a shortage of shared accommodations in the country. On the other hand, 92.9% of respondents answered that they would be willing to use it if various types of shared accommodations were sufficiently supplied in Korea as they are overseas. If there were enough options, 83.1% expected that the overall travel experience would be improved, including reducing the stress of preparing for travel and visiting new cities.
Manager Seo Ga-yeon said, “Many Koreans have already fully experienced the price competitiveness of shared accommodations and local stays through overseas travel,” and added, “If local accommodations that reflect the charm of each region are supplied at a reasonable price, we will be able to change the standardized domestic travel structure and contribute to revitalizing the local economy.”
89% of travelers in Asia Pacific have visited non-city cities… Looking at the cases of Australia and Japan
Sharon Chan, head of communications for Airbnb’s Asia-Pacific region, introduced related cases along with the high demand for regional travel in the Asia-Pacific region.
According to Airbnb, 89% of travelers in the Asia-Pacific region visited non-city destinations in the past 12 months. Plans for regional travel within the next 12 months were also high. In the case of Korea, it was also emphasized that the proportion of domestic travelers in regional travel reaches 90%. A critical awareness was raised that the key to revitalizing regional travel lies not only in attracting foreigners, but also in ‘how to enable Koreans to experience the region again.’
General Manager Sharon Chan emphasized, “The demand for local experiences is so strong that nine out of ten regional travelers in Korea are domestic. If the content is solid, Korea, like other Asia-Pacific regions, can revitalize regional travel.”
Manager Seo Ga-yeon said, “As everyone is only recommended similar places through AI apps and algorithms, the same places are highlighted every time. We need a new phase that goes beyond algorithms and helps people directly explore and visit new areas.”
In the presentation that day, overseas cases such as Australia and Japan were also introduced. What they have in common is that even small areas can be attractive as destinations by combining accommodations, content, and stories.
Sharon Chan, General Manager, said, “In the case of Australia, 80% of respondents said they wanted to visit a small town they had never been to before. For example, many users showed interest in the Westonia region of Australia, which had a population of only about 250, but the problem at the time was a lack of accommodation. To solve this problem, Airbnb created and provided a guide providing local accommodation information, and users responded greatly, saying they did not know such an option existed.”
He continued, “Japan’s Funagata region was able to regain vitality through the success of the empty house project. There are about 9 million empty houses in Japan, and Airbnb focused on the possibility of converting them into local tourist accommodations. We successfully revitalized the region by carrying out a project to preserve and remodel old traditional houses and introduce them as new spaces in collaboration with celebrities.”
Next, the case of Australia’s wine tourism was also mentioned. He said that it was designed not only to present accommodations, but also to introduce local wine regions, nature, and experiential content so that lodging and local activities can be consumed together.
You can make money even outside of the accommodation… Stay effect spreads to local economy
As accommodations become available, not only does demand for one night increase. Director Sharon Chan explained that based on statistics from the Asia-Pacific region, the more dispersed travel is, the greater the benefits to the local community.
He said, “The average spending per person, excluding accommodation costs, was calculated to be $169 (about 250,000 won) in Korea, and $157 (about 230,000 won) on average in the Asia-Pacific region. Additionally, 87% of guests received local recommendations from their hosts, and 97% responded that these local recommendations influence actual spending. This means that lodging serves as a ‘local consumption platform’ that connects to local commercial districts.”
He continued, “In fact, the picture emphasized by Airbnb is also in line with this. We are continuously designing a structure in which travelers stay in local accommodations, use local restaurants, cafes, and experiences through host recommendations, and their consumption is returned to the local area. Revitalizing local travel is ultimately not a matter of increasing one accommodation, but how to design the length of stay and consumption flow in the area.”
IT Donga Reporter Kim Dong-jin (kdj@itdonga.com)