Korean domestic travelers have shifted their accommodation preferences decisively from traditional pensions and stays at friends' or relatives' homes to hotels. Amid persistent high prices, travelers are increasingly favoring practical three-star or lower hotels over expensive properties with elaborate amenities.
According to a survey by travel research firm Consumer Insight released Wednesday, hotel usage among domestic travelers reached 30% last year, ranking first among all accommodation types. The figure represents a nearly 1.8-fold increase from 17% in 2017, based on annual surveys of 26,000 respondents conducted over nine years from 2017 to 2025.
The rising preference for hotels stems from price increases and poor cost efficiency at traditional vacation accommodations.
At the core of this shift lies the high fees and "fatigue" associated with pensions and camping facilities.
Data from accommodation platform ONDA showed that in the first half of last year, the average price per guest at pensions was approximately 150,000 won, while pool villas averaged 240,000 won. Glamping and camping sites also recorded average fees of around 145,000 won.
When factoring in food preparation costs and additional barbecue charges, actual spending often exceeds 300,000 won. Analysts attribute the declining appeal to travelers having to handle cleanup tasks such as dishwashing and recycling despite paying premium prices—a deterrent for those seeking "true rest."
Cost has become the dominant factor in travelers' accommodation decisions. The survey found that 22% of respondents cited "cost" as the most important consideration when choosing lodging.
The Travel Corona Index (TCI) for cost stood at 135, the only category to show increased importance compared to pre-pandemic levels, with the largest gain among all surveyed factors. This contrasts with declining or stagnant importance for previously key indicators such as "distance and transportation" (21%), "room environment" (17%), and "surrounding scenery" (14%).
Within the hotel market, a clear shift toward budget options is evident. While four-to-five-star hotels and three-star or lower hotels each held 12% market share in 2017, three-star or lower hotels reached 16% last year, surpassing the 14% share of higher-rated properties.
This trend reflects the growing prevalence of small-group travel for one or two people, combined with a strengthening food tourism trend where travelers prefer dining at local restaurants rather than cooking at their accommodations, driving demand for cost-effective hotels used primarily for sleeping.
Traditional accommodations have struggled amid hotels' advance. Using 2025 as the baseline (100), the TCI for condominiums and pensions stood at just 74 and 83 respectively, indicating demand declines of 17% to 26%.
"As we entered an era of high prices, travelers have come to prefer hotels with minimal necessary functions over expensive accommodations with extensive amenities," an industry official said. "Unless pensions and camping facilities secure price competitiveness, the concentration of demand toward hotels will accelerate."