'Travel Bubble' Introduction... Growing Expectations in Travel and Aviation Industries

Government May Introduce Travel Bubble as Early as July

Passengers are waiting to board the Asiana Airlines 'A380 Korean Peninsula Tour Flight' departing from Incheon Airport on the 24th. The Asiana Airlines 'A380 Korean Peninsula Tour Flight,' carrying 298 passengers, took off from Incheon International Airport at 11 a.m. that day, flew over Gangneung with views of the East Sea, passed Jeju Island with views of Hallasan Baengnokdam, and returned to Incheon at 1:20 p.m. This is a special sightseeing product. Photo by Airport Photo Journalists Group at Incheon Airport

[Asia Economy Reporters Donghyun Choi and Jehun Yoo] The travel industry is increasingly optimistic about a recovery in business conditions. With higher COVID-19 vaccination rates and the government’s announcement to introduce a ‘Travel Bubble’ (safe travel zone) in July, travel demand is expected to surge.

Hana Tour, which began a five-day workweek this month for about 400 employees, is currently considering additional staffing. A Hana Tour representative said, "We are preparing internally with the goal of having all employees return to normal attendance by October. Although travel demand has not yet increased noticeably on the ground, expectations are high due to the rise in vaccinated individuals and the introduction of the Travel Bubble."

On the day the Travel Bubble was confirmed, Chamjoeun Travel immediately launched related travel packages. One such package is a 5-night, 7-day trip to Paris, France, departing next month on the 12th, exclusively for vaccinated travelers. Lee Sang-ho, CEO of Chamjoeun Travel, described the Travel Bubble as "a much-needed relief in a drought," adding, "The travel industry, which has struggled with zero sales for over 16 months since February last year, now holds hope for a rebound with the normalization of overseas travel within this year."

Interpark Tour ended its unpaid leave program, which began last November, and all tour division staff are currently working. Various products targeting revenge travel demand are being prepared. An Interpark Tour representative stated, "Since the beginning of the year, we have been pre-selling overseas travel packages in preparation for the post-COVID era," adding, "We plan to proceed while adhering to quarantine guidelines, focusing on nearby and safe countries such as Singapore, Guam, and Taiwan."

The airline industry is also welcoming the news. International passenger demand dropped by more than 90% compared to 2019 due to COVID-19, causing airlines to accumulate losses amounting to billions of won. Jeju Air resumed its Incheon-Saipan route on the 8th after about a year. Other airlines are also reportedly preparing to resume operations.

However, given that the COVID-19 pandemic remains ongoing, there is considerable caution about whether the Travel Bubble will proceed smoothly. Singapore and Hong Kong, which previously established Travel Bubbles, repeatedly postponed them due to successive COVID-19 resurgences. An industry insider said, "The situation could be fluid depending on whether COVID-19 resurges," and predicted, "Even if implemented, the recovery in demand will be limited."