Naver, Hotel Shilla to collaborate for AI and cloud

South Korean leading luxury hotel and retail operator Hotel Shilla has entered into a strategic partnership with internet giant Naver Corp.

The collaboration, ratified by a memorandum of understanding (MOU) signed on Sept. 8, aims to usher in a new wave of digital transformation in the hotel industry.

With an objective to amplify customer benefits both online and offline, Hotel Shilla will integrate Naver Pay into its Duty-Free point system. The hotel brand is set to adopt Naver’s cutting-edge hyperscale AI and cloud technologies across its online platforms. 

A cornerstone of this alliance is the deployment of HyperCLOVA X. Launched on Aug. 24, HyperCLOVA X will serve as a catalyst for Hotel Shilla's drive to modernize its hotel and duty-free operations.

The partnership will also see the adoption of  ARC eye, Naver's digital twin solution, further enhancing operational efficiencies and the customer experience.

For personalized services and recommendations, Hotel Shilla will utilize Naver’s AI-based product recommendation system, AiTEMS.

Starting Sept. 18, benefits from Naver Plus and Shilla Internet Duty Free Shop memberships will be unified. Members spending over 200,000 won ($150) at Shilla's online duty-free shop will be eligible to receive up to 8% in Naver Pay points, marking a strategic move to boost customer loyalty.

Furthermore, Naver Pay’s versatile payment system will find application across Hotel Shilla’s businesses, encompassing online and offline duty-free shops. Plans are also underway to introduce Naver Pay QR codes for on-site payments at various Hotel Shilla and Shilla Stay locations.

Write to Ji-Eun Jeong at jeong@hankyung.com