"Without generative artificial intelligence (AI), we would never have discovered hidden gems in Korea, allowing seamless payments in local currency. The combination of AI search and local fintech will break down barriers for foreign tourists and drive them to small cities," said Nuno Guerreiro, Booking.com's Director for North Asia-Pacific.
As the global travel platform celebrates its 30th anniversary, Booking.com is leveraging its 'Hyper-Personalization' technology to globalize local tourism in Korea. The goal is to disperse foreign tourists, currently concentrated in major cities like Myeongdong in Seoul, to boost local economies. This initiative aligns with the South Korean government's push for balanced regional development, aiming for an early achievement of 30 million inbound tourists.
During a press briefing in central Seoul on May 18, Guerreiro highlighted the paradigm shift in the global travel industry and the potential of the Korean market. Having joined Booking.com in 2007 and spent 18 years in various global roles, he has focused on the Asian market for the past seven years. "We aim to expand the appeal of Korean tourism, which is currently concentrated in major cities, to a national level through hyper-personalization technology," he stated.
The global travel industry has experienced unprecedented growth following the pandemic. According to Booking Holdings' first-quarter results, the number of nights booked increased by 6% year-over-year to 338 million. The total booking value rose by 15% to $53.8 billion, while quarterly revenue grew by 16% to $5.5 billion, demonstrating strong growth momentum. With support for over 40 languages and nearly 29 million accommodations, Booking.com's infrastructure has been a solid foundation for its growth.
◆ Hyper-Personalization as a Ticket to K-Small Cities: "Avoiding Crowds with AI"
The Korean market boasts explosive inbound demand, ranking third in Asia for traveler searches from May to August this year. Booking.com is betting on the activation of 'local small city tourism' to distribute this demand nationwide. The dominance of individual travelers (82.9%) chasing K-culture has shifted the focus of the inbound tourism market. Additionally, 67% of all travelers want to discover new 'alternative destinations' using AI to avoid crowds at popular tourist spots.
Hyper-personalization technology is key to overcoming the physical and psychological barriers that travelers face when heading to small cities. Its natural language-based AI search network identifies attractions in these areas, while a seamless payment infrastructure allows global travelers to pay in their local currency using platforms like Naver Pay and Kakao Pay. For instance, travelers from Brazil or the U.S. can book a small hanok accommodation in Gyeongju without facing any inconveniences related to currency exchange or payment refusals. In the first quarter of this year, the growth rate of Booking Holdings' payment platform surged by 24% year-over-year, with 72% of total booking transactions processed on the platform.
In fact, customer data revealed that Gyeongju ranked first as the 'most hospitable city in Korea for 2026,' followed by Jeonju, Seogwipo, and Sokcho, showcasing a boom in regional tourism. The recent increase in long-term stays of over seven days, particularly among active seniors and multi-generational travelers, is also a positive sign for the activation of small city tourism.
◆ High Level of Technology Adoption: The Dominance of 'Connected Trip'
Guerreiro identified 'high-value tourism' and 'hyper-personalized experiences' as key trends for 2026, driven by the remarkable technology adoption in the Korean market. According to Booking.com, 69% of Korean travelers used AI during their trips, 19 percentage points higher than the global average. In the Asia-Pacific region, 95% of consumers expressed optimism about AI usage, and 93% wanted AI features in future travel.
Notably, the success of Booking.com's 'Connected Trip,' a one-stop service established over 20 years ago, is particularly evident in Korea. The usage rate for booking three or more elements, such as flights, accommodations, and activities, is 26% in Korea, significantly higher than the global average of 17%, demonstrating market sophistication.
Guerreiro emphasized, "Our mission goes beyond simply attracting foreign tourists; we aim to lay the groundwork for sustainable growth for local communities. We will actively engage with the Korean government and relevant agencies to turn this vision into reality."
* This article has been translated by AI.
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