"Extending Summer Vacation Abroad"... Retail Industry Busy with Travel Resumption

Overseas travel packages are stretching out. Lotte Homeshopping will actively expand the sales of popular overseas travel destinations such as Europe and Southeast Asia starting from the 13th. The "Philippines Henann Resort" package has exceeded 1.4 billion KRW in order value. The photo shows a Lotte Homeshopping broadcast selling overseas travel packages.

[Asia Economy Reporter Yuri Kim] As the summer vacation season travel expectations rise, the distribution industry is rejoicing. In particular, with the COVID-19 vaccination population surpassing 10 million and vaccinations accelerating, the previously halted demand for overseas travel is awakening again, making the travel and duty-free industries busy for the first time in a long while.

◆Vaccine Incentives for Domestic Travel Too

According to the hotel industry on the 11th, the summer peak season (July-August) room reservation rate at major tourist destination luxury hotels such as Jeju and Gangwon exceeds 90% on weekends. A luxury hotel official said, "This year, people are preparing for summer vacations faster than usual," and predicted, "The occupancy rate will be close to full for all rooms in July and August."

City hotels are also busy welcoming summer staycation guests. Outdoor swimming pools have opened earlier than usual, and shaved ice menus topped with various fruits such as apple mango, watermelon, and blueberries have been launched simultaneously. Especially notable are promotions offering incentives to COVID-19 vaccine recipients. Shilla Stay has launched a package for those who have completed at least the first dose of vaccination, providing up to 10,000 KRW taxi fare support when moving from the hospital to the hotel on the vaccination day, along with a 'care kit' consisting of a cooling patch and vitamin drinks. They also offer a 20% discount at buffet restaurants. Courtyard Marriott Seoul Times Square Hotel is running a promotion from June 8 to July 11 where vaccinated guests and their companions who book 'room only' can get breakfast for 100 KRW per person. The '100 KRW breakfast' can be used for up to two people.

Swimsuit sales are also on the rise in preparation for summer vacations. According to Shinsegae Department Store, swimsuit sales from March to the 7th of this month increased by 47% compared to the same period last year. Last year, swimsuit sales decreased by 55.4% compared to the previous year due to the impact of COVID-19, but since indoor sports facilities reopened in mid-February, sales have recovered to the same level as the previous year.

In the second year of COVID-19, the hotel industry is focusing on marketing that offers a 'vicarious satisfaction of overseas travel.' They have launched packages featuring exotic food and beverages that allow guests to fully enjoy the feeling of traveling abroad, such as to Hawaii. The photo shows the Hawaiian gourmet promotion at Hotel Seoul Dragon City. Photo by Seoul Dragon City.

◆Overseas Travel Also Stretching Out

Travel products aligned with the 'Travel Bubble' allowing group travel between countries with excellent quarantine measures are emerging one after another. Lotte Homeshopping plans to expand sales of popular overseas travel products such as Europe and Southeast Asia starting from the 13th, as group overseas travel becomes possible as early as July. Lotte Homeshopping said, "We resumed sales of overseas travel products for the first time in the industry in January this year, about a month before COVID-19 vaccines were fully distributed domestically, by introducing 'Vietnam Novotel accommodation vouchers,'" adding, "Since then, the 'Philippines Henann Resort' sold 1.4 billion KRW worth, and the 'Chamjoheun Travel Hope Package,' which includes over 400 overseas travel products worldwide, has reached 15,000 bookings, receiving great response." CJ OnStyle sold out three European travel products including Italy, Eastern Europe, and Spain on the 6th, achieving 52,000 reservations. These products were sold for 390,000 KRW excluding airfare with a validity period of two years.

Chamjoheun Travel confirmed departure on the 12th of next month with six reservations for the France Paris travel product released on the 9th. Interpark Tour also opened a 'Frozen Travel Permanent Hall' introducing airfare, hotels, resorts, and package products in response to the increase in overseas travel demand. Hana Tour plans to launch Guam travel products soon. The industry expects that when overseas travel resumes, the suppressed travel demand will explode, and travel product sales will increase more than twice compared to before COVID-19.