With the summer vacation peak season just around the corner, accommodation prices in Donghae during the peak period had been running three to four times their off-season rates as recently as last week.
But after Donghae introduced its "summer accommodation rate peak system" — capping prices at twice the off-season rate — businesses moved swiftly to lower their prices. Hotels that had been charging 70,000 won ($47) in the off-season were listing rooms at 250,000 to 300,000 won during the peak period as recently as last weekend, but are now adjusting back to reasonable levels.
As of Tuesday, some accommodations that normally charge 50,000 won per night were still listing peak-season rates of 150,000 won — in violation of the city's new standard. Whether Donghae will enforce the cap strictly remains to be seen, given that 150,000 won a night at a coastal city during peak season is not easily argued to be excessive.
Donghae has been waging its war on price gouging for years — well before the practice dragged other local governments into crisis — and has consistently pursued verifiable alternatives.
Even during the 2018 Pyeongchang-Gangneung Winter Olympics, when inflated accommodation prices drew nationwide criticism, nearby Donghae held its prices steady.
The city said it is rolling out the summer accommodation rate peak system to prevent excessive price hikes during the summer season and establish a culture of fair pricing. Under the system, participating businesses must declare their peak-season rates in advance, with a ceiling set at twice the off-season price.
This year, 88 accommodation businesses in the city are taking part and will offer rates within that framework. Participating establishments, whose standard rates range from 40,000 to 700,000 won, may charge no more than twice their off-season rate during the peak period.
The Constitution Day holiday weekend served as an important test for both enforcement authorities and businesses that had tried listing inflated rates. Many travelers planning trips to Donghae were taken aback by the prices posted.
According to Yanolja Group and others, motels in Donghae that normally go for 50,000 won were widely listed at more than 200,000 won during the Constitution Day holiday, while pensions normally priced at 700,000 won appeared at more than 2 million won. Since the city announced the new cap, businesses have been pulling those prices back down.
The peak system applies to registered accommodation businesses under the Public Health Control Act; unregistered platforms such as Airbnb are excluded. A list of participating establishments is available on the Donghae city website, and the city plans to supply hygiene products to those that take part.
Meanwhile, ahead of the full summer season, Donghae conducted voluntary self-inspections at 135 accommodation businesses from July 1 to July 10.
The inspections focused on the cleanliness of bedding and bathrooms and the hygiene of air-conditioning units. Most businesses were found to be in compliance with sanitation standards, and the process helped raise awareness of hygiene management among operators.
Yun Hye-gyeong, head of Donghae's prevention and management division, said the peak system — under which businesses voluntarily set and pre-register reasonable rates — is expected to help eliminate price gouging and foster a healthier accommodation culture. "We are continuously working to make Donghae a tourist city that visitors feel safe staying in and want to return to," she said.
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