hankyoreh

South Jeolla Province

By Kim Kwang-soo, Busan correspondent in Suncheon

In 2008, three young Americans in San Francisco set up Airbnb (Air Bed and Breakfast) with the idea of putting up spare rooms for rent. It began as a service that allowed travelers from around the world to use Facebook to find available rooms in the homes of ordinary people.

The service was appealing partly because it was much more affordable than staying at a hotel, and also because it offered the “homestay” opportunity through which travelers could experience an unfamiliar culture while staying with a local. Currently, more than 4 million people in 190 countries have used the service, and it is starting to make leading hotel chains nervous.

Now room sharing services that follow in the footsteps of Airbnb are coming to South Korea. These services are in line with the concept of “sharing economy,” or the idea that people can share their resources for mutual benefit. Over the past few years, businesses including BnBHero, Oneday Space, Kozaza, and Hanintel have risen to challenge the hotel industry. Could these sites reach the same stage as Airbnb?

A Hankyoreh reporter used BnBHero to see what room sharing is all about. While BnBHero has a similar name to Airbnb, it is a Korean company that has no connection with them. It began offering services in May 2012 in time for the Expo in Yeosu.

For my travel destination, I chose Suncheon in South Jeolla Province, where the Suncheon Garden Expo Korea was being held. On June 12, I visited the BnBHero website to find a place to stay. I was able to become a member at BnBHero right away by signing in through my Facebook account. When I typed “Suncheon” in the search box and indicated that I wanted to check in on June 13 and check out on June 14, a list of available rooms appeared, complete with pictures and price information.

I chose a room in an apartment where I could stay with the homeowner. One reason I chose it was because it was inexpensive, but I was also influenced by reviews that had been posted by previous guests there. Reviews that spoke of a warm welcome that reminded them of home and the delicious breakfast prepared by the owner won me over.

In order to secure the permission of the homeowner, I sent a message on Facebook explaining what my job is and that I wanted to spend a night to experience room sharing. While hotels and motels generally don’t refuse any customer, room sharing services are based on trust. As such, guests must get the consent of the homeowner before they can stay. While it is possible to request a room immediately, starting out by sending a short introduction is a good way to improve the chances of being accepted.

Before long, I received a reply. The owner said that he would accept my request if I made a reservation. I used my credit card to pay the bill of 33,000 won (US$29.26). The room itself cost 30,000 won, with a 3,000 won commission for the company.

Soon, I got an email confirming my reservation. It was every bit as convenient as Airbnb, which I had used in Sep. 2012 when I spent three days with a family in San Francisco.

One thing that got my attention was the real name confirmation process, which confirms the guest’s identity using their mobile phone number. The idea is that if there is property damage or something unpleasant happens, it will be possible to track the identity of the lodger.

I did experience a minor inconvenience after viewing the homeowner’s greeting and pictures for one accommodation I had selected from the online list. The website was quite slow when I tried to go back to view a different accommodation.

On the afternoon of June 13, I made the approximately three-hour drive from Busan to Suncheon. After checking out the Suncheon Garden Expo Korea for about an hour, I arrived at Fiore Apartment in the Yongdang neighborhood of Suncheon, where I had made my reservation. Around 9 pm, I parked my car in the underground parking garage at P Apartments, which are large enough to house about 1,000 families, and made my way to the 19th floor. I was greeted warmly by the son of homeowner Jung Gyeong-nam (43, female) and office worker Ryu Cha-yeol (43, male). The couple’s son, who is in his last year of high school, said that he lives in the school dormitory but had stopped by the apartment to work on an assignment.

The apartment was about 100 square meters in size with three bedrooms. Because the apartment had only been built about three years ago, the interior was very neat. Inside, it looked about the same as any other apartment.

I was not the only guest. A couple in their 30s had come down from Ansan in Gyeonggi Province with their two sons, who were not yet seven years old.

“Today I was in a performance at the Suncheon Garden Expo Korea,” said Wang Jeong-in (38, male), a member of the Ansan City Choir. “We came down with our children for our fifth wedding anniversary. I was surprised that it was so affordable for all four of us to stay at a place that feels like home.”

While the prices for accommodations with BnBHero are set by the homeowner, a couple with their two young children are able to spend the night at an apartment in Suncheon for around 30,000 to 50,000 won.

There were two bathrooms in the apartment. The owner Jung allowed guest Wang and his family to use their personal bathroom. Jung, the other guests, and I sat comfortably at the table drinking quince tea that she had made herself. Jung put some cherry tomatoes and cookies on the table. We began to swap stories as if we were old friends.

“Our two children, who are both in high school, live in the school dormitory. This meant we had two empty rooms,” Jung said. “The Suncheon city government partnered with BnBHero in March to solve the accommodation issue for visitors to the Suncheon Garden Expo Korea, and they held an information seminar attended by about 200 Suncheon locals. This made me think of the movie ‘Romantic Holiday’ from 2006 in which a woman living in Los Angeles, US, and a woman living in London, England, swap houses during their vacation.”

Drawn by the idea that she could provide a room to someone who needed it for an affordable price while also increasing her own income, Jung registered her apartment on BnBHero with some photos that showed the interior. The first guests arrived on May 17, she said. Other guests started to come, having read the review that the first guests posted after their visit. I was the 18th guest they had hosted. In less than a month, Jung had made about 600,000 won (US$532).

The advantage of room sharing services for travelers is the cheap price of accommodations. The majority of family homes on BnBHero cost about 30,000 won for two people compared with the average 100,000 won it costs to spend the night at major hotels in Suncheon.

“Hotels are expensive, and it is awkward to bring the kids to a motel, so we weren’t sure what to do,” said Lee Hwa-yong, 35, Wang’s wife. “Then we happened to learn about BnBHero online. Bingo, we thought, and we decided to go with that.”

“Many homeowners seem to be hesitant to rent out their entire house out of a fear that an accident could happen,” Jung said. She said that if BnBHero were to put together a system for compensating the homeowner up to 1.2 billion won (a little more than US$1 million) for damages from fires and other accidents caused by the guest as Airbnb has, she would consider putting the entire apartment up for rent when her family goes on vacation.

If room sharing services expand in the future, it is expected that there will be a backlash from the hotel and motel industry, just as there already has been in the US. The guidelines of the Ministry of Culture Sports and Tourism state that, in order to run a city “minbak” (home stay) business, the total area of the building must be no more than 230 square meters. Another issue that crops up here is that once someone gets a permit for a city homestay, they have to pay taxes.

“The sharing economy is good for everyone, as it creates jobs, stimulates the local economy, and helps solve problems related to the environment and transportation,” said Jo Min-seong, head of BnBHero. “The government needs to take swift action to provide systemic support for businesses of this sort. This could involve reducing or eliminating the taxes that need to be paid.”

The next morning, I woke up to birdsong coming from the hill behind the apartment. Jung was preparing our breakfast. Her husband Ryu ushered us to the table and told us to tuck in. Mr. Wang and his family joined me at the table.

Owner Jung had gotten up early in the morning to prepare seaweed soup and ten natural side dishes. The food was made with loving attention, and tasted great. As we prepared to leave, the couple handed us boiled potatoes for the road and waved as we went on our way.

Please direct questions or comments to [english@hani.co.kr]