"Giving Up Summer Vacation"... Rising Prices and Oil Costs Increase 'Hyupojok' Trends

Rising Exchange Rates Lead to More Giving Up Overseas Travel
Over 10 Million Won for a Family of Four
Round-Trip Airfare to Hawaii Doubles 'Soars'
Domestic Hotel Costs Also Skyrocket

A380 aircraft taking off.

[Asia Economy Reporters Lim Chun-han and Jeon Jin-young] Office worker Kim decided to give up on traveling abroad with his family during the summer vacation. The expensive airfare prices and the exchange rate soaring to 1,300 won made the costs too burdensome. Kim said, "Most destinations cost over 10 million won for a family of four," adding, "I was planning to take my first trip abroad since social distancing, but it looks like I won't be able to go until next year." Although the peak summer vacation season has begun, more people are giving up travel plans due to high oil prices and inflation, choosing to stay home instead.

◆ Soaring Airfare and Rental Costs... Travel Becomes a 'Dream' = According to industry sources on the 1st, round-trip airfare between Incheon and Hawaii from the 25th to 31st of this month ranges from 1.8 million to 2.5 million won. This is about twice the price compared to 2019, before the COVID-19 pandemic. Round-trip airfare between Incheon and London or Paris has risen from the previous 1.5 to 2.2 million won to 2.3 to 3.5 million won. Airfare between Incheon and Bangkok has increased from the 500,000 won range to 900,000 to 1 million won.

Domestic airfare prices are similarly high. During the same period, round-trip airfare between Gimpo and Jeju soared to 250,000 to 390,000 won. Renting a car in Jeju, such as an LF Sonata, from the 29th to 31st costs about 250,000 to 370,000 won. As vacation costs surge, a new term combining vacation and inflation, 'Vacaflation,' has emerged.

Many are actually giving up on traveling altogether. Housewife Im decided to spend this summer vacation in Busan, where her parents live. She originally planned to travel to Singapore but found the prices too burdensome and considered Jeju Island, which was also not cheap. Im said, "When you add up the plane, hotel, and rental car, a family of three spending two nights and three days in Jeju costs well over 2 million won," adding, "This time, I'll just spend my vacation visiting my parents."

Lotte Hotel Jeju exterior view.

◆ Hotel Prices Skyrocket... 'Whatever the Price, It's the Price' = Domestic hotel costs are also soaring. Assuming a family of three stays for one night during the peak season on the 29th and 30th of last month, the cost for a room with two beds was 500,000 to 700,000 won in Jeju, and some places in Busan exceeded 1 million won. Especially, ocean-view rooms at hotels command higher prices. In Jeju, the Shilla Hotel Ondol Terrace Double was priced around 720,000 won on weekends, the Grand Chosun Jeju Deluxe Twin Poolside View was about 750,000 won, and the Grand Hyatt Jeju Twin Room with Mountain View was around 610,000 won.

In Busan, hotels located in Haeundae and Gijang exceeded 1 million won. At the Paradise Hotel Busan in Haeundae, the Junior Double Suite City View overlooking the city was in the 900,000 won range, but the Ocean Terrace room jumped to around 1.1 million won. At the Ananti Hilton in Gijang, the Premier Twin Room was about 760,000 won, but the Ocean View room rose to about 850,000 won. The Signiel Busan's Signiel Premier Family City View Room with one double bed and one single bed was in the 1 million won range, and the Ocean View was around 1.1 million won. In Gangneung, the Skybay Hotel Gyeongpo's Executive Double Room with Ocean View and one queen bed was about 450,000 won, and the Saint John's Hotel Gorgeous Ocean Double Room was in the 500,000 won range. Most prices were 100,000 to 200,000 won higher than off-season weekend rates.

Industry insiders explained that it is natural for hotel room prices to rise during peak seasons and that prices had been abnormally low during the COVID-19 social distancing period. A hotel industry official said, "Hotel room prices are determined by limited room supply and changing demand, so during the low-demand COVID-19 period, prices were abnormally low for two years. Even famous hotel chains sold rooms for prices in the 100,000 won range or less," adding, "As demand increases with the endemic (periodic spread of infectious diseases), price increases are a natural phenomenon in the hotel room pricing system."

Professor Lee Eun-hee of Inha University's Department of Consumer Studies said, "Recently, airfare and accommodation costs have risen significantly, causing many to give up overseas travel and choose domestic trips instead," adding, "Among those who find domestic travel burdensome, staying home for vacation is becoming a trend. It seems people are seeking various alternatives for recharging since they cannot travel."