Luxury Hotels Seek Ways to Cater to Budget-Conscious Customers
With the implementation of the Improper Solicitation and Graft Act, also known as the Kim Young Ran Law, luxury hotels are now finding ways to attract even more budget-conscious customers and steer clear of their upscale image, Korea JoongAng Daily reported.
For example, the Grand Intercontinental Hotel in Samseong-dong, Gangnam, Seoul, launched a premium version of the GS25 convenience store in the connecting corridor to COEX Mall. This is reportedly the first time that a convenience retailer has been installed in a five-star hotel.
A spokesman for the Grand Intercontinental Hotel said, "We noticed many "staycationers" - people who vacation or spend the holiday in their home country - bought food or drinks from outside the hotel instead of using room service or the mini bar."
The GS25 is designed differently from other stores by having wooden walls and also provides a slightly different set of products such as sparkling wine, imported beer, and character items specifically prepared for Chinese tourists.
The Conrad Hotel in Yeouido, on the other hand, established a downsized cafe "10G" in the corner side of its hotel lounge in March. Hotel cafes are usually used as locations for business meetings and are considered expensive due to being part of the luxury hotel package. 10G offers much cheaper sandwiches and beverages than most cafes in luxury hotels.
A Conrad Hotel spokesman said, "Our goal is to provide a resting place for people who wish to enjoy small moments of luxury in life, by providing them products and services of hotel quality at a reduced price."
JW Marriott Dongdaemun Square Seoul launched a pop-up cafe in August called "What the Truck." It sells desserts and beverages made by the hotel chef in the food truck, but the prices are definitely cheaper than those from the restaurants inside the hotel.
A spokesman from the Marriott Hotel said, "The intention was to create a lighter image and send a message to people that hotels can be visited casually without worrying about the paycheck. The tactic seems to be working because there are more people stopping by the hotel in curiosity of the truck."
Another important factor for presenting lower prices is the increasing number of Chinese tourists in South Korea. An individual working in the hotel industry said, "Although Chinese tourists are big spenders when it comes to shopping, they have a tendency to budget tightly on lodging expenses. As business hotels already have an advantage in terms of low costs, price cuts in buffet might create a synergy to attract more Chinese tourists."
