Deachul Seo Senior Researcher at Yanolja Research / [email protected]
The sharing accommodation industry, primarily represented by Airbnb, is experiencing significant growth in South Korea. In particular, Seoul has seen an average annual growth rate of 23% in the number of listings over the past decade. As of March 2024, approximately 16,687 listings are registered in Seoul, marking a 45% increase compared to the same month last year. This represents a nearly 90% recovery of the pre-pandemic peak of 18,531 listings in January 2020.
Travelers choose Airbnb as an alternative accommodation not only because of its affordability. Staying at a local s home, rather than a hotel that provides standardized service, allows tourists to experience the unique culture of the destination. This offers a distinctive appeal to those seeking a differentiated experience. Additionally, shared accommodations can be a reasonable choice, as they provide a variety of options that fit the purpose and nature of the trip, such as long-term stays or family vacations.
Monthly trend of Airbnb listings in Seoul 
Distribution of Airbnb listings by district (March 2024)
Most Airbnb accommodations in Seoul are concentrated in areas adjacent to major tourist spots such as Myeong-dong, Gwanghwamun, Gangnam, and Hongdae. However, compared to the pre-pandemic period, the growth in regions outside these dense areas has become more pronounced. When comparing Airbnb listings from March 2019 to March 2024, the districts with the highest growth rates among Seoul s 25 districts were Dobong-gu, Geumcheon-gu, Dongjak-gu, Gwangjin gu, Gwanak-gu, Gangdong-gu, and Gangbuk-gu. These seven districts saw an addition of 1,049 new listings compared to 2019, with an average growth rate of 166%. Gangnam-gu also registered 221 new listings, showing a stable growth rate of 15.7%, despite already having a high number of listings before the pandemic. Meanwhile, Dongdaemun-gu, Jongno-gu, and Seodaemun-gu showed relatively low growth rates, within 5%. Yongsan-gu and Jung-gu, although popular among foreign tourists, saw a decrease in the number of listings. Overall, areas adjacent to tourist spots appear to have limited growth due to a high base effect and market saturation.
Change in listings by district (March 2019 vs March 2024)
When searching for rooms on the Airbnb platform, you could easily access reviews posted by former guests. These reviews also indicate the guests nationalities. An analysis of 187,255 reviews from 4,454 accommodations in Seoul revealed that guests came from over 120 different countries. The nationalities of the guests were as follows: Korea (32%), the United States (10%), China (9%), France (3.4%), Singapore (3.2%), Germany (3%), Australia (2.8%), Japan (2.3%), the United Kingdom (2.3%), Hong Kong (1%), and others (31%), with the top 10 countries accounting for approximately 70% of the reviews.
Over time, there was a noticeable increase in the frequency of Korean reviews starting in early 2020. This is likely due to the pandemic restricting international travel for Koreans, leading to increased use of Airbnb for domestic travel. Meanwhile, as the influx of international visitors resumed with the recovery from the pandemic, the number of foreign-language reviews began to increase from early 2022.
Proportion of guest nationalities (March 2024) 
Trends in review posting by country 
There were regional differences in the characteristics of Airbnb usage between locals and foreigners. The proportion of local and foreign guests per property was estimated based on Airbnb reviews posted as of May 2024. The results showed that areas with a high proportion of foreign guests included major tourist areas like Mapo-gu, Seodaemun-gu, Jung-gu, Jongno-gu, and Yongsan-gu. In contrast, regions outside these tourist areas had a higher proportion of local guests. This suggests that different factors may influence the choice of an Airbnb property between locals and foreigners. Foreign travelers prefer properties near various attractions with ample transportation options. On the other hand, while locals may also choose Airbnb for travel purposes, their reasons for using the service could be more diverse, including domestic business trips, short-term stays, or renting spaces for gatherings. Therefore, locals are not limited to accommodations near tourist attractions.
Property locations preferred by Korean and foreign guests
After their stay, guests can rate their experience based on seven categories ( Overall Experience, Communication, Accuracy, Cleanliness, Check-in, Location, and Value for Money ) on a scale of 1 to 5. When a property accumulates three or more guest reviews, the average score for each category is displayed at the top of the review page.
For regional comparison, an analysis of 36,690 Airbnb listings in Seoul during Q1 of 2024 was conducted. The district-level analysis showed that overall ratings for Airbnb-dense areas near tourist attractions, such as Mapo-gu, Jung-gu, Jongno-gu, and Gangnam gu, were lower compared to other regions. For a more detailed comparison, 18,963 properties in Mapo-gu, Jung-gu, Jongno-gu, and Gangnam-gu were classified as dense areas, while 17,727 properties elsewhere were classified as less-dense areas, and their ratings were compared. Both areas scored above 4.6 out of 5 in all seven evaluation metrics. However, the ratings for Overall Experience, Communication, Accuracy, Cleanliness, Check-in, and Value for Money were higher in less-dense areas compared to dense areas. Conversely, the Location score was higher in dense areas. This indicates that while properties in dense areas (i.e., near tourist attractions) receive positive evaluations for their geographic advantages, they score lower in all other service categories compared to less-dense areas.
Scatter plot of listings and ratings by district (March 2024) 
Guest ratings by district (Q1 2024)
Guest ratings by district (Q1 2024)
Ratings of dense areas relative to less-dense areas
As previously noted, dense areas had a higher proportion of foreign visitors, while less-dense areas had a higher proportion of local visitors. This suggests that the difference in evaluation scores between dense and less-dense areas could be due to the different evaluation tendencies of locals and foreigners. To verify this, an analysis was conducted on 4,454 sampled properties to compare the ratings given by local and foreign guests4. The average scores of local and foreign guests were 4.71 and 4.78, respectively, with foreign guests giving higher average scores. In other words, despite foreign tourists tendency to be more generous in their evaluations, the lower average scores for properties in dense areas, which have a high proportion of foreign visitors, indicate that the service quality in these areas could indeed be relatively lower.
What factors determine the overall evaluation of the accommodation? To answer this question, a regression analysis was conducted with Overall Experience as the dependent variable and the other service evaluation categories as independent variables. The analysis revealed that Cleanliness is the most important factor, followed by Value for Money, Accuracy, Communication, Check-in, and Location, in that order of influence. This highlights that the property s hygiene ( Cleanliness ) plays a decisive role in the overall satisfaction of guests. Additionally, the value provided relative to the cost ( Value for Money ) and the transparency of the accommodation s information online ( Accuracy ) are also significant factors in explaining the guests overall evaluation.
On the other hand, Location was found to be the least important. This suggests that while location is a crucial consideration for guests before selecting a property, it is not a decisive factor in their overall evaluation after their stay. In other words, after the stay, the experiences related to the accommodation itself are more important than the location of the property. For Airbnb-dense areas near tourist attractions, the average daily rate (ADR) is generally higher compared to less-dense areas, requiring higher costs. However, if guests find that the cleanliness is poor and the actual property condition does not match the advertised information, their overall satisfaction can decrease despite the advantageous location.
Relative importance of evaluation categories 
Guest reviews contain diverse opinions based on their experiences during their Airbnb stay. Since experiences can vary even for the same accommodation, analyzing reviews helps to comprehensively understand what guests prioritize. An analysis of latent topics found in Korean and English reviews revealed differences in service evaluation perspectives between locals and foreigners.
Both groups commonly mentioned themes such as Host, Facility, and Location, but with notable differences in content. In Korean reviews, the Friendliness of the host was emphasized, whereas in English reviews, the host s Communication ability was a major point of discussion.
Korean reviewers focused on aspects related to the accommodation s interior, such as Internal Facilities, Amenities, and Atmosphere/View. In contrast, foreign reviewers placed greater importance on Local Experience. This indicates that while Koreans prioritize comfort and convenience within the accommodation, foreigners are more concerned with how the accommodation contributes to their overall travel experience. Also, Korean reviews frequently mention the available amenities, interior design, lighting, and the ambiance created by the accommodation. Essentially, Korean reviews resemble those of traditional hospitality industries like hotels, with the frequent mention of Value for Money underscoring the importance of getting quality commensurate with the price paid. This suggests that unlike foreigners, the primary purpose of Airbnb use for Koreans is not focused on local experiences.
Korean: key topics and representative reviews
Conversely, English reviews often include references to cultural characteristics or local experiences near the accommodation. Keywords like experience, traveling, and Seoul are frequently mentioned, indicating that foreign reviews reflect not just the internal evaluation of the property but also their local travel experiences in Seoul. Additionally, Location is a frequent topic in English reviews. For example, keywords related to tourist spots such as Hongdae and Myeong-dong, as well as restaurants and public transportation, are often mentioned, showing that the proximity to attractions, dining options, and transport facilities is important in evaluating the accommodation. Thus, reviews reveal that the expectations of local and foreign guests regarding accommodations are distinctly different.
English: key topics and representative reviews
An analysis of low-rated negative reviews reveals that the primary complaints are related to the cleanliness of the property, the inaccuracy of the property s description, and the host s unresponsiveness7. Cleanliness concerns frequently include mentions of the hygiene and cleaning standards within the accommodation. This is a consistent issue found in both Korean and English reviews. Cleanliness is the most fundamental aspect of an accommodation s evaluation, directly affecting overall satisfaction with the stay, and thus, requires urgent improvement.
In foreign reviews, there were many mentions related to Accuracy. For example, guests often expressed disappointment when the actual condition of the accommodation differed significantly from the photos displayed on the booking site. This usually arises when exaggerated promotions fail to meet the heightened expectations of guests.
Unpleasant communication experiences with the host were also evident. Instances include guests arriving at the check-in time but being unable to contact the host, resulting in long waits outside, or delays in the host s response to requests for supplies. Particularly for foreign guests, communication issues often arise due to language barriers. Difficulties occur when hosts do not understand guests requests, or when hosts impose excessively strict house rules, preventing guests from having a comfortable stay.
Airbnb has become an attractive option for individual travelers by offering a variety of accommodation choices and localized experiences. It goes beyond merely providing lodging, enabling travelers to directly experience local culture and lifestyles. The unique spaces and personalized hospitality provided by individual hosts create unforgettable memories for travelers. However, due to the nature of shared accommodation, there can be significant variations in service quality, such as basic hygiene, customer service, and the fidelity of accommodation information, between properties. This uncertainty factor could potentially lead to customer disappointment.
Addressing the uncertainty in service quality will open up opportunities for repeat visits from those who seek the unique advantages of Airbnb. To achieve this, Airbnb should clearly provide guidelines for service quality improvement to individual property operators and ensure thorough quality management. This will help establish Airbnb as a more reliable accommodation platform. The success of Airbnb is directly linked to the success of its hosts, so hosts should carefully analyze customer reviews and actively address the needs and complaints highlighted by guests. Hosts are also tasked with the crucial responsibility of taking notice of guests requests during their stay. From the guest s perspective, renting an Airbnb is not only about accommodation but also about experiencing the local culture. In fact, many positive reviews left by foreigners often mention the host by name, indicating how personal the lodging experience was for them.
As inbound tourism grows in post-pandemic Korea, Airbnb has the potential to support the increasing accommodation demand from international tourists. Qualitative growth for Airbnb would be timely. Exploring additional measures to improve services for international tourists would be especially beneficial. For example, enhancing training programs for hosts can raise awareness of the importance of service quality, and would ultimately provide memorable local experiences for tourists.
Recently, young international travelers seeking to actively experience local culture are expanding their destinations to new areas beyond the city center, such as Seongsu-dong, which is emerging as a new cultural hub for Korean youth. Additionally, areas traditionally sought out by tourists are becoming relatively saturated, indicating a gradual expansion of traveler demand to outer districts. In these new areas, Airbnb can leverage its strengths to meet the needs of individual travelers wanting to experience local culture. Developing and promoting unique local experiences in each region can create added value and potentially increase the duration of travelers stay. Ultimately, this can play a crucial role in growing the inbound tourism market.
*To reference this article please use the below citation: Deachul Seo (2024). Analysis of Seoul Airbnb Quality and Satisfaction Through Customer Reviews, Yanolja Research Insights, Vol. 16."
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