Motivation for the Advancement of the Startup Idea
□ External Background and Motivation
Recovery and Changes in the Tourism Industry
After the COVID-19 pandemic, inbound tourism to Korea is recovering rapidly, with an increasing demand for personalized travel experiences. The Korean tourism industry is expected to see 30.7% growth in domestic tourism in 2021 and 31.7% growth in outbound tourism in 2022. In the Asia-Pacific region, international tourism spending is projected to increase by 148.3%. Over 52% of global travelers prefer longer stays, with 25% staying for more than 10 days. However, challenges such as a lack of tourism infrastructure and high costs remain, and proactive measures are needed.
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Technological Background – Digital Transformation and the Tourism Industry
Digital transformation is reshaping the tourism industry's value chain and driving innovation. Digital technologies are being incorporated into all aspects of tourism services, including bookings, information provision, transportation, and activities. However, the level of digital transformation in domestic tourism companies is still lower than in foreign counterparts. The government is promoting policies to become a digital leader, and the introduction of digital technologies in the tourism industry is essential for strengthening global competitiveness.
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Need for Innovative Technologies and Platforms
AI and big data-based integrated platforms are gaining attention for maximizing consumer convenience in accommodation, leisure, transportation, and other sectors. AI technology analyzes users' travel schedules and preferences to offer personalized services, addressing the increasing demand for personalized travel, especially among the MZ generation. We are developing a service using AI-based chatbots and exclusive databases that recommends local places tailored to user preferences. This platform suggests authentic local places known only to locals, offering personalized experiences to drive MAU (Monthly Active Users) growth.
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We are developing a service using AI-based chatbots and exclusive databases that recommend local places tailored to user preferences. This platform offers personalized experiences by suggesting authentic places known only to locals, aiming to grow MAU (Monthly Active Users) and meet the demand for global personalized travel.
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Global Expansion and Sustainability
This platform plans to expand globally, starting in Korea and extending to countries such as Thailand, Vietnam, Singapore, and Japan. By uncovering hidden locations and unique experiences in each region, it aims to provide authentic travel experiences beyond simply listing popular tourist spots. Through government support and investment, we aim to enhance the platform's capabilities and ultimately expand into a B2B business model, achieving digital innovation and sustainability in the tourism industry.
□ Internal Background and Motivation
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Global Experience and Strengths of the Co-founders: The co-founders, originally from Ukraine and Russia, have extensive global experience, having worked as the European branch heads of MyMusicTaste and at Sony Music Entertainment. They have traveled to many countries, exploring unique spaces and travel routes, and provided ideas to transform these into services. In particular, Sophie, the CEO, experienced unique places in Korea that only local artists and industry professionals knew of, which solidified the need for a differentiated service.
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Problem Awareness from the Perspective of Foreign Travelers: The founders experienced firsthand the issues foreign tourists face when visiting Seoul, such as language barriers and advertising-heavy information on Naver Maps and Kakao Maps. Based on this, they decided to develop a service optimized for foreign tourists, focusing on providing "genuine local experiences."
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The First Step in Product Development and Commercialization: In December 2023, the founders invested personal funds to launch the first prototype via outsourcing, focusing on improving the foreign user experience and personalizing travel. Incorporating user feedback, they founded the company on February 21, 2024, to begin platform development and commercialization. The service slogan, "Your Travel Buddy," emphasizes helping foreigners experience local culture in a friendly way.
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Long-term Vision and Global Expansion: The founders plan to expand services from Korea to major Asian countries such as Thailand, Vietnam, Singapore, and Japan, discovering unique places and cultures to enhance their global competitiveness. The goal is to provide special experiences that can only be accessed through this service, going beyond just information provision. Through technology and content advancement, they aim to establish themselves as trusted local travel companions for foreign tourists.
Purpose of Advancing the Startup Idea
The tourism market is rapidly evolving with digital transformation and changes in travel trends, and our startup aims to strengthen its competitiveness through continuous advancement.
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Differentiating from Advertising-Centered Platforms: We aim to differentiate our service by offering hidden local attractions and unique experiences, avoiding the advertising-heavy information provided by competing platforms. We plan to secure user trust by providing high-quality, verified information through collaboration with local experts and communities.
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Global Expansion Readiness: We plan to introduce multilingual support and a user-friendly interface in preparation for global expansion. We will enhance accessibility by supporting languages such as English, Chinese, and Japanese, and improve user experience through a personalized recommendation feature.
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Maximizing Intuitive and Efficient Information Delivery: By using AI and big data technologies, we will leverage an exclusive database and interactive interface to maximize the intuitiveness and efficiency of information delivery. The aim is to provide personalized travel experiences with a reliable recommendation system.
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Expanding Services to Major Cities and Global Markets: Starting with Seoul, we aim to expand services to major cities such as Busan, Daegu, and Gwangju, and set the stage for entry into global markets such as Southeast Asia. By offering differentiated curation and unique content, we will provide region-specific experiences to global users and secure a competitive edge.
Conclusion
Through technological and content innovation, our goal is to optimize user experiences, build a differentiated competitive advantage in both domestic and international markets, and become a global platform contributing to the digital transformation of the tourism industry and the revitalization of local economies.
Market Analysis of the Startup Idea
□ Changes and Recovery in the Domestic Tourism Industry
Post-COVID-19 Recovery and Changes in the Tourism Market
The domestic tourism market is recovering rapidly after the COVID-19 pandemic. As of March 2023, the cumulative number of foreign visitors reached 1.71 million, recovering to 45% of the level in 2019. Tourists from Oceania and North America have shown a 90% recovery rate, driving new demand, while Japanese tourists are at a 66.8% recovery rate and tourists from Southeast Asia and the Middle East at 79.9%. Chinese tourists have shifted from group tours to individual travel and experiential demand. Tourists from the U.S., Singapore, Netherlands, France, and other countries continue to visit Korea, contributing to the recovery.
□ Tourism Industry Recovery and Domestic Economic Activation
The recovery of the tourism industry has had a positive impact on the domestic economy. For example, foreign tourists visiting Jeju Island in 2023 spent 43 billion KRW on credit cards, a 65% increase compared to August 2019. This increase shows the potential for foreign tourists to contribute to the revitalization of regional economies and the expansion of the domestic market. Wellness, local content, and digital transformation are emerging as key drivers for the sustainable growth of Korea’s tourism industry.
□ Government’s Tourism Industry Activation Strategy
The government is pushing forward the "Korea Tourism Export Innovation Strategy" with the goal of attracting 20 million foreign tourists and achieving tourism revenue of 24.5 billion USD by 2024. Through the creation of smart tourism cities and digital transformation, the government is enhancing convenience for foreign tourists by providing tourism data platforms and AI-based personalized services. Policies emphasizing sustainability, such as the development of vegan tourism and eco-friendly tourism products, are also being implemented.
The tourism budget for 2024 has been finalized at 13.115 trillion KRW, a 6.6% increase compared to the previous year. This reflects the government’s commitment to supporting the sustainable growth of the tourism industry, focusing on wellness, local content, and digital transformation.
□ Digital Transformation and Changes in the Tourism Industry, Platform Success Stories, and Global Expansion
Digital Economy Transformation Brings Innovation to the Tourism Industry
A survey found that 69.1% of Koreans prefer personalized tourism information using big data and AI. Digital platforms are replacing the role of traditional travel agencies, playing a central role in the value chain of tourism product planning, booking, and information provision. The COVID-19 pandemic and the advancement of IT technology have accelerated digital transformation, and large platform companies like Google and Coupang have entered the travel market, intensifying competition.
□ Strengthening Platform-based Tourism Industry
Domestic platforms like ‘Yogiyo’ and ‘Yanolja’ are leading the tourism industry through technological innovation and global expansion. ‘Yogiyo’ has grown into a unicorn company and expanded its market by acquiring a stake in an overseas airline reservation company. ‘Yanolja’ has strengthened its market dominance by attracting investment from SoftBank’s Vision Fund and acquiring small- and medium-sized hotel systems and international hotel management companies.
□ Importance of Integrating Technology with the Tourism Industry
The integration of 4th industrial revolution technologies such as big data, cloud computing, IoT, and digital twins is accelerating the digital transformation of the tourism industry, enabling the creation of new experiential tourism products and services. This technological fusion is driving innovation in the tourism ecosystem and promoting sustainable growth.
Conclusion
Digital transformation and government support are essential for enhancing the global competitiveness of Korea’s tourism industry. The strategy combining technological platform innovation with regional economic revitalization will be the core growth engine for Korea’s tourism industry.
Improvement Tasks for the Startup Idea
Current Status and Improvement Direction
Currently, our Version 1 service is optimizing design and functionality by collecting user feedback to improve UX/UI and create a stable operating environment. Our goal is to provide an intuitive and accessible interface while improving the app's speed and expanding server capacity. Currently, the service is offered only in English, but we plan to expand language support using AI translation technology to include Chinese, Thai, French, and other languages, enhancing accessibility for global users.
Recommendation Function and Community Enhancement
Location recommendations are being improved based on user evaluations and data. To increase the trustworthiness of recommended locations, we are introducing a rating system and will add a community space for user interaction. This will foster communication among users and enhance service loyalty.
Expansion of Map Services and Global Market Entry
The current location service based on Google Maps will be enhanced using Naver and Kakao APIs, and we are expanding the service to major cities beyond Seoul. We are preparing a differentiation strategy to compete with local platforms in high-growth markets like Southeast Asia.
Convergence and Creation of High-Value Products
As the digitalization of the tourism industry accelerates, it is important to create high-value products and services through the integration of other industries. To achieve this, we aim to provide unique and differentiated content by responding to technological trends and collaborating with small businesses and local communities.
Conclusion
Based on these improvement tasks, we are committed to continuous innovation and technological development to offer a competitive service in the global market.
Improvement Tasks Based on Customer Requirements
Version 1 received positive feedback for targeting foreign tourists, offering the service in English, and providing clear targeting and useful information. Users were satisfied as they could gather both the atmosphere and detailed information about locations, and the database-building process helped establish strong ties with small businesses and networks within local commercial districts.
However, there were also issues such as functional limitations in UX/UI, cumbersome registration procedures, and map errors that hindered the user experience. To address these, we are developing Version 2, which is set to launch in March 2024 on iOS and Android platforms. The new version will manage data encryption and integrate a chatbot interface through GPT, allowing users to receive customized information based on categories and current location intuitively. This will significantly enhance user convenience.
We also plan to add a feature for transitioning to Google Maps after checking specific location details to increase accessibility, eliminate registration barriers to maximize MAU, and simplify the search process for users to easily find the information they want. These efforts focus on improving user experience and enhancing service loyalty while strengthening platform competitiveness.
Improvement Tasks Compared to Competing Products and Services
□ Domestic Platform Analysis
Daytrip offers itinerary planning and recommendations based on famous tourist sites and landmarks, making it a suitable platform for beginner travelers. It excels at simplifying travel plans focused on historical sites and popular places but falls short of offering hidden local spots or unique experiences. While useful for users who prefer mainstream experiences, it is less capable of meeting the demands of users seeking differentiated experiences.
□ International Platform Analysis
Grab, a super app based in Southeast Asia, integrates ride-hailing, food delivery, and travel bookings, maximizing user convenience while maintaining a high market share. However, it focuses primarily on popular attractions, lacking in offering localized, unique experiences and curated content, which could weaken its competitiveness in specific markets.
Chope, a global platform headquartered in Singapore, leads restaurant reservation services in Southeast Asia. It excels in providing efficient dining experiences through a simple reservation system but faces challenges. Chope is primarily focused on restaurant bookings and lacks additional features like food exploration, personalized recommendations, and local culture and experience offerings, making it less attractive to users expecting more than just reservations.
TripAdvisor, a global platform with reviews and ratings for over 8 million accommodations, restaurants, and attractions, offers a vast selection based on user-generated content. However, its advertisement-centric structure risks lowering the reliability of information, and the overload of information may detract from the user experience.
□ Our Strategy and Improvement Tasks
We are focused on overcoming the limitations of competing platforms by enhancing the provision of local-specific experiences and unique curation. Our strategy is to provide verified, high-quality information and collaborate with local experts and communities to build trust.
To strengthen competitiveness in specific regions and markets, we will offer differentiated curation services and local experiences while providing customized content instead of excessive information, thereby improving the efficiency of information exploration. This will enhance the user experience and differentiate us from global platforms.