About startups innovating the local travel and leisure industry

Changes in the local travel and leisure industry
In most non-metropolitan areas, the revitalization of travel, leisure, and tourism and the attraction of tourists are one of the important sources of income that drives the local economy. Therefore, a lot of investment has been made in developing various local tourism resources and providing convenience to tourists. However, recently, the interpretation of travel and leisure has been changing a lot. Looking at consumers in the travel and leisure industry from the perspectives of Experience, Digital, Food, and Work & Stay. , investments need to be made at the local level.

And if you look for good examples of local tourism industries revitalizing over several years, there are common characteristics. Rather than being revitalized by creating large-scale facilities at the local government level, we often see cases of a region being transformed as it is reborn as a “local” content through the self-sustaining efforts of startups that make good use of the local assets of the region. Places such as Gaehang-ro in Incheon and Yeongdo and Jeonpo-dong-gil in Busan have been destinations for tourism for a long time. From this perspective, we would like to talk about local travel and leisure, those who are rewriting the formula for the tourism industry, and startups in the travel and leisure sector.

Content startups utilizing local assets
Food is no longer a secondary element of travel, but has long since become the purpose of travel itself. Momos Coffee in Busan initially grew as a specialty coffee brand that produced world barista champions. However, recently, through its Yeongdo and Haeundae Marine City stores, it seems to be establishing itself as a property tech company that implements the element of experience in its stores throughout the entire process from roasting coffee to delivery to customers. do. And now, as the title of an article suggests, it is playing the role of an important regional asset to the extent that it is not excessive to say, “The brand that became the reason to visit Busan.” The reason Momos Coffee, which is also a member of the Korea Startup Forum, is considered in the category of startups is that it has infinite potential and scalability from a food company to a proptech company to an urban regeneration company.

Batt, an agricultural company in Gangwon-do, famous for its potato bread, is also a startup worth paying attention to. It is famous for generating more than 10 billion won in annual sales through potato bread, but in fact, it is a startup that shows infinite scalability from potato seed development, cafe store business, and experience content business. In fact, potato bread gained popularity on social media (SNS) as a potato-like product, generating major sales through online stores. However, it does not stop there, and the attraction that makes people visit Gangwon-do, the hometown of potato bread, serves as a local tourism asset. This startup, which started as a food company and was thought to stop at online sales, is growing rapidly by producing new culture and content, which is also a reason to look at it again as a local content company rather than a small and medium-sized food company.

Among the startups that provide agricultural company field assets as travel content, there is also a startup called Surfholic. Surfholic, which started in Songjeong, Busan, is a startup that literally deals with everything about surfing. It has been a long time since traveling to Busan itself became a trip to Busan, developing various programs beyond education and equipment rental. Since it is possible to expand anywhere with similar natural environments in Korea and overseas, it is possible to predict growth that will never lag behind that of IT startups that have no physical limitations.

Busan Surfholic Songjeong Headquarters Not only the non-information technology (IT) companies introduced earlier can turn local assets into content. Startups such as Ranking Fish (Ansan), which provides fishing spots where you can easily fish, and Connect Zero (Busan), which provides a taste of fishing app, are also startups that present hidden tourist content in the region. This is also the reason why it is viewed as a startup with growth potential because ordinary areas that cannot be seen as tourist resources can be turned into local assets through fishing content, and the area can be expanded to any region in Korea or abroad.

Ranking Fish

Mobility startups amplifying the travel experience
The area that secondarily expands the various travel and leisure content experiences introduced earlier is the area of ​​mobility. If you thought it was simply a rental car or vehicle reservation service, it would be a big mistake. It is worth paying attention to three startups that offer an easy, inexpensive user experience armed with digital technology. Caplix provides a Jeju Pass app that provides rental car reservations and restaurant information in the Jeju area. It should not be viewed simply as a platform company specialized in the Jeju region. Existing rental car companies, which have inconvenient face-to-face contact points such as vehicle overbooking, face-to-face handover, and accident confirmation, are growing into companies that help with the DX (Digital Transformation) transition of kiosks and apps. Recently, the company has expanded into the Japanese rental car market based on this technology, showing how digital mobility has become an important factor in travel.

Caplix’s Jeju Pass Busan tour staff is running a mobility business called Tourzi in the last mile area. Through ultra-small electric vehicles, ambiguous travel routes of 5 to 10 km are solved at a reasonable price, and electric bicycles are provided for distances of 1 to 3 km, helping travelers travel. Because it grows mainly in local areas where public transportation is weak, expansion is possible for similar local travel destinations. In travel, movement is not a means. It has become established as a travel process itself, and although it involves revisiting the same place, it can also take the quality of the trip to a different level depending on the method of transportation and DX experience. This is also a reason to view mobility startups as an important user experience in travel and leisure.

Tour staff’s electric car

Startups taking lodging into the realm of experiential content
If we can provide an efficient experience connected to good local content through various mobility methods, lodging is a very important area that expands the scope of consumption through expansion of stay time. Accommodation does not stay here, but lodging itself is emerging as an experience content, and the main characters are Dajayo in Jeju Island, Mr. Mention in Busan, and Romantic Commentator in Gangwon-do. Dajayo, which provides lodging services by renting out empty houses on Jeju Island for a long period of time, is already a well-known example, and is a company that is making various innovative attempts under the regulatory sandbox.

However, there are two other areas that I am paying attention to in the travel industry. The first is to reflect the location and characteristics of empty houses in the area to create a space where there are no similar homes. This is a capability that can be applied not only to lodging spaces, but also to spaces for various purposes. This is also the reason why it is predicted that a proptech-like move will be possible. Second, lodging is the place where people stay the longest, and various experience elements can be applied differently to each lodging, making it possible to enrich the user experience. This may result in additional charges for the experience.

Dajayo’s empty house project Mr. Mention started as a one-month living project and is expanding into an accommodation reservation management service based on IT technology. We are seeing many cases where people who stay for a long time, such as a month, spend more in the area and go viral, so if you are a local government that is concerned about helping local merchants become self-reliant by attracting local consumption, it is a good idea to strategically create partnerships. It seems necessary.

Mr. Mention’s One Month Living Project Lastly, romantic commentators have recently been creating new value in Gangwon-do. Although it has a business structure that looks similar to Dajayo, the business model structure is different. In the process of renovating an empty house, we invest the amount of the renovation cost to attract investors and provide accommodations like a membership. Additionally, for some days, revenue is generated by receiving short-term reservations from non-members. Recently, the number of users of subscription and membership services is gradually increasing, and we anticipate an ecosystem where the area of ​​expensive resort memberships, which were a symbol of wealth, is expanded to the area of ​​the common people.

Romantic commentator’s villa joint ownership renovation

A work startup that connects the realms of rest and work.
One of the keywords that has been emerging recently is work. The Holiday, which operates work centers in various regions, is a representative startup. I have seen statistics that the consumption of work-oriented people is slightly higher than that of general travelers. This may be because of the value consumption-oriented consumer characteristics. Workplaces, like lodging, lead to consumption becoming local income through expansion of stay time, and from a company’s perspective, it seems to be attracting attention as an effective welfare content provided to members.”/>

Innovation in the travel and leisure industry created by local startups
You may have heard of the various startups introduced above at least once. They are focusing on the MZ generation, which has a high level of familiarity with digital, and are reflecting their user experiences and conducting business in a new way with experiential content. More local asset content startups in the food and experience areas will continue to emerge, and mobility that connects these experiences is becoming an important part of travel.

Through the expansion of stay time, it leads to the areas of lodging and work activities that promote local consumption, and a new value chain in the travel leisure industry appears to be forming. Now, what will come next in this value chain? What other content will enrich the areas of travel and leisure in the travel and leisure industry? This is why we closely observe and pay attention to new startups in this industry.

Jongsu Kang, Chairman of the Regional Subcommittee of the Korea Startup Forum (Co-CEO/Founder, Calls Dynamics)
After experiencing four startups and two sales while in school, he founded Calls Dynamics in his hometown of Busan. A residential-business complex for local startups called Urban Creators Unit was built in Seoul, serving as a hub for various local startups. By creating a store called a local restaurant, it serves as a base for discovering and investing in DX startups and food startups in the self-employed market.

Jongsu Kang emphasizes⁣ the importance ⁣of balancing‍ innovation with authenticity in travel experiences.‍ How can startups effectively ​leverage ​technology⁤ without ⁣compromising ⁤the cultural⁢ integrity ‌of destinations?

## Open-Ended Questions for Discussion Based on the Travel Startup Article

This article presents interesting insights into the evolution of​ the travel and leisure industry,⁢ particularly focusing on the impact of local startups. ⁢ Here are some open-ended questions to spark discussion ⁢and ⁣encourage diverse perspectives:

**Section 1:⁣ Local‌ Accommodation ‌& Experiential Travel**

* **Dajayo, Mr. Mention, and Romantic Commentator present unique⁢ models for lodging. Which approach resonates most with you and why? What‌ are the potential challenges and opportunities for each model?**

* **The​ article emphasizes the importance⁤ of “experiential content” in‍ accommodation. How can ‍startups effectively​ integrate unique ​local experiences into their offerings without simply mimicking existing tourist attractions?**

* **How can local governments best partner with ⁣startups like ⁢Mr.⁣ Mention to promote sustainable tourism and support local⁣ merchants?**

* **Beyond lodging,⁣ what other ⁣areas of the travel ​industry could benefit from the “proptech-like” approach discussed in the‍ article?**

**Section⁤ 2: The Rise of ⁣”Workcations”**

* **The ⁢article highlights the growing trend of “workcations.” What​ are the underlying ​reasons for this‍ shift, and ⁣how do you see it evolving in the future?**

* ⁢**How can ​startups like The Holiday ⁣cater to the specific needs ⁢and preferences of “workcationers” beyond simply providing​ workspace?**

*‍ **What are the potential ‍benefits and downsides of businesses offering “workcation” packages as a form of employee welfare?**

*⁢ **Could “workcations” lead to a decentralization of work‍ and a reevaluation of traditional office spaces?**

**Section 3:​ The Future of Travel & Leisure Innovation**

* **The article suggests‌ that a new value chain ⁣is​ forming in the travel⁣ and ​leisure industry. What other forms of innovation do you‍ anticipate seeing in this sector?**

* **How⁣ can startups and established‍ players in‌ the travel industry collaborate to create ⁢more⁢ sustainable and inclusive experiences⁤ for travelers?**

* **What role will technology,​ such as AI and VR, play‌ in ‌shaping the future of travel?**

* **Considering the ‌increasing focus on digital experiences,‍ how can travel startups ensure ‍they are offering authentic and⁤ meaningful connections‌ with local cultures and communities?**

**Engaging with Jongsu Kang’s Perspective**

* **Jongsu ‌Kang mentions his passion ​for supporting⁤ startups in his hometown of Busan. What are the unique ⁤challenges and opportunities for entrepreneurs in regional areas, compared to metropolitan⁢ hubs?**

* **How can the Urban⁢ Creators ⁢Unit and initiatives like the ‍local restaurant model be replicated in other regions to empower local startups and foster innovation?**

*⁤ **Based on‍ his experience with Calls Dynamics, what advice would Jongsu Kang give to aspiring entrepreneurs ‌in the travel⁢ and ⁢leisure sector?**

These⁤ questions encourage critical thinking, exploration of various perspectives, and ⁢discussion⁤ about‌ the future of a rapidly​ evolving⁤ industry.