Insights into South Korea ------------------------------------------ Hyun Soo Co-founder Allstay South Korea #WIT2016 #reimagine @webintravel 2016 Korean Online Travel Industry Report Hyunsoo Cho, Allstay co-founder About allstay u Accommodation meta-search service in Korea u Mobile & private accommodations u Funded by Venture Republic(Japan), Tidesquare(Korea) u Launched on Oct 2015 u 350,000 downloads (Aug 2016) u 240,000 MAU (Aug 2016) u Reached BEP since June Allstay in WIT u Startup battle in WIT Tokyo(2015) u Bootcamp panel in WIT Seoul(2016) u Bootcamp panel in WIT Tokyo(2016) u Bootcamp session in WIT Singapore(2016) • Gold sponsor in WIT Seoul?(20xx) Contents u Market insights u Flight u Accommodation u Tour & Activity u Wrap-up Market insights #Growth #Mobile #Local Market insights u Growth of outbound travelers Unit : 10,000 2012 2013 2014 2015 Outbound 1,374 1,485 1,608 1,931 Growth(%) 8% 8% 8% 20% u Growth updates u Increased 17% (y to y, Aug 2016) u Keep breaking record both in outbound and inbound Market insights u Mobile shopping behavior u 76% of customers use multi device u 51% of customers search mobile before purchase u 38% of revenue is coming from mobile(travel) Only Mostly Mobile = Mostly Only mobile mobile PC PC PC (Source : Nasmedia, 2016) Market insights u Local Kings Local OTA Search & Messenger E- Commerce Flights #OTA #LCC #META Flights u TOP10 Airline BSP ranking (Aug 2016) Unit : Rank Name of Travel agency 2016.08 2015.08 Growth(%) 1 Hana tour 2 Interpark 3 Modoo tour 4 Yellow balloon 5 Sejoong 6 Online tour 7 Redcap tour 8 Tidesquare 9 Very good tour 10 Hanjin tour Flights u LCC leads FIT trend u 6 players (Air Busan, Esta Air, Jeju Air, Jin Air, Tw a y Air, Air Seoul) u Expanding to international flight ó global LCC enter Korean market 35 over 30% 30 25 Major 20 LCC 45% 15 55% 10 5 0 2013 2014 2015 2016 LCC penetration in short international flight LCC penetration in domestic flight(2016) Flights u Meta – next battlefield u 30% of OTA flight sales are made via Meta service u Big local and global players are entering Accommodation #OTA #PrivateAccommodation #META Accommodation u Global vs Local Local Hotel OTAs Global OTAs Local Motel OTAs Accommodation u Motel/Pension is big, still local driven 15~20x bigger than Domestic hotel market 30000 25000 20000 15000 10000 5000 0 Hotel BNB Pension Motel Number of accommodation in Korea Accommodation u Meta is still new but getting hot No.1 player, successful partnership with Naver Aggressive TV marketing on 2016, growing very fast The first local meta, focusing on local partners Tour & Activity #Chaos #Startup #Differentiation Tour & Activity u No dominant player Tour & Activity u Differentiation is Key Inventory Instant & Mobile Booking Coverage Wrap-up u Korean industry is fast growing with FIT & Mobile u Flight u OTA to META u LCC does matter u Accommodation u Global OTA is taking over hotel industry u Private accommodation will be big u Tour & Activity u Most intensive competition u Inventory and instant booking will be Key Thank you #WIT2016 #reimagine @webintravel .