Norang Pungseon, Q1 Sales 500 Million Won... "Establishing New Performance Base with OTA Launching in Q2"

[Asia Economy Reporter Yoo Hyun-seok] Direct sales travel specialist company Norangpungseon announced on the 17th that it will improve profitability through proactive business structure optimization amid the travel industry crisis caused by COVID-19.

On the same day, Norangpungseon disclosed that its consolidated sales for the first quarter of this year amounted to 500 million KRW. During the same period, consolidated operating loss and net loss were 3.2 billion KRW and 2.6 billion KRW, respectively.

A Norangpungseon official stated, “We are efficiently reorganizing our business structure in preparation for the time when the travel industry can fully normalize,” adding, “To capture the travel market that will change after COVID-19, we are establishing a new growth foundation centered on our own OTA (Online Travel Agency) platform scheduled to launch in the second quarter.”

He continued, “Although performance has declined compared to the same period last year, we are strengthening our fundamentals through proactive cost structure optimization and continuing stable management,” explaining, “With increased rental income from our office building and continuous reduction of operating expenses, profitability is expected to improve significantly after the end of COVID-19.”

Norangpungseon plans to open its self-developed ‘Norangpungseon OTA Integrated Platform’ in the second quarter of this year. The OTA integrated platform is a travel platform where customers can simultaneously book and pay for travel services such as flights, hotels, tours, activities, and rental cars according to their travel preferences, including independent travel and package tours.

Meanwhile, Norangpungseon is expanding the development and sales of various new travel products suitable for the COVID-19 situation. Prioritizing customers’ safe travel, it is selling various types of travel products such as independent travel, package tours, and hotel vacations in partnership with home shopping companies and others.