Kang Seung-woo is the Business Desk editor at The Korea Times. Prior to this position, he covered politics, national affairs, finance and sports.
Wyndham sets sights on local cities in Korea
The Ramada Encore by Wyndham Jeju Seogwipo East
By Kang Seung-woo
By Kang Seung-woo
In the supposedly saturated Korean hospitality market, where international and domestic hotel chains have flocked to Seoul and its surrounding areas, Wyndham Hotels and Resorts, the world's largest hotel franchise company, is taking a different approach: going to cities outside the capital region.
Wyndham, which runs the Ramada and Howard Johnson hotel chains, has 42 hotels across the country, with 35 of them located outside Seoul.
Joon Aun Ooi, Wyndham's president and managing director of Southeast Asia and the Pacific Rim
“We are at the forefront of hotel development in Korea and expanding our presence in line with the country's larger strategy to drive both domestic and international travelers into secondary cities,” Joon Aun Ooi, the company's president and managing director of Southeast Asia and the Pacific Rim, said in an interview with The Korea Times.
According to the Malaysian, Korea is a key market for the group, as it is one of the top outbound destinations from China, the world's largest tourism source market. It is also the sixth-most visited country in Asia.
“There is an abundance of growth potential not only in major cities like Seoul, but also second-tier cities that are experiencing a boom in real estate and with demand increasing our hotels caters to this gap with quality accommodation at an affordable price, appealing to both domestic travelers and the surge in Chinese tourists who prefer to stay in mid-scale properties.”
In June, Wyndham opened the 222-room Ramada by Wyndham Daejeon, its 41st hotel in Korea. This follows the March openings of the 592-room Ramada Encore by Wyndham Gimpo Han River and the 467-room Ramada Encore by Wyndham Jeongseon Sabuk in Gangwon Province. In addition, the firm recently opened three Howard Johnson properties on Jeju Island.
“We provide quality accommodation at a very affordable price by providing essential amenities and services in every destination,” he added.
While focusing on building properties outside the capital, Wyndham is set to appeal to Korean customers by offering opportunities for various experiences.
“The majority of tourists are looking for more than one experience ― they want attractions, entertainment and shopping. It is no longer enough to just have a limited offering,” he said.
“Additionally, with the growth of middle-class business and leisure travelers, we are setting our eyes on millennials who are looking for authentic travel experiences. These travelers are cost-conscious, choosing to save on accommodation but willing to splurge on experiences. They are currently not brand loyal, which opens up an opportunity for us to win their loyalty. On top of that with the popularity of Korean pop culture producing a ripple effect, Korea has become a unique and desirable destination to the world.
“This is the most appealing point to Korean customers since they love to experience local cultures, cuisines and outdoor activities.”
The president also said his company is “well-poised to explore and capture the ever-changing customer segment over time.
“Providing a personal touch and understanding what preferences each guest has is a unique advantage that hotels have and the industry has to leverage this a lot more in the years ahead. By offering holistic experience and creating a home away from home in a foreign country,” he said.
“Korea has been able to stay up to speed with the exponential increase in demand for travel and tourists' arrival, and we will continue to leverage on this to meet this continuously growing demand.”