Domestic Travelers Surge... 'Value for Money' Opportunities Abundant Online

Airfare, Accommodation, and Fuel Costs Surge
MZ Generation-Targeted Jeju Package Products Grow 190%

[Asia Economy Reporter Kim Cheol-hyun] Sales of domestic travel products are surging. In particular, demand is expected to increase further during the summer vacation season when family travelers increase.

According to 'Preview of 2022 Summer Vacation Trends' recently announced by Yanolja, the domestic accommodation reservation rate during the peak summer season in July and August this year rose 117% compared to the same period last year. This is interpreted as an increase in 'U-turners' who enjoy vacations domestically instead of overseas travel, which is highly uncertain due to factors such as high oil prices, high exchange rates, and differences in country-specific reopening policies.

By region, Gangwon, accessible by car from the metropolitan area, ranked first with a 26.5% accommodation reservation rate. It was followed by Jeju Island (19.8%), Gyeonggi Province (19.1%), Busan (18.6%), and Seoul (16.0%) in popularity. Unlike last year, when 52.8% of total reservations were concentrated in Jeju Island and Gangwon, this year the reservation rates were relatively evenly distributed across regions.

By accommodation type, the entire hotel category showed the highest growth, increasing 126% compared to the previous year. In particular, 4- and 5-star luxury hotels (102%) saw a significant rise. It appears that travel demand to enjoy a hotel vacation at premium hotels instead of overseas travel continues. Additionally, as the popularity of camping, which spread after COVID-19, continues, outdoor accommodations such as glamping and caravans grew by 107%.

At TMON, sales of Jeju package products grew 190% in June compared to the previous month. Compared to June of the previous year, it also grew by 170%. Ahead of the full-fledged summer vacation season in July and August, the ongoing trend of high inflation and high oil prices has caused airline ticket prices to skyrocket, leading to demand turning back domestically, concentrating on Jeju Island, a representative domestic travel destination.

Package products with increasing sales on TMON are composed around themes different from existing packages, such as dolphin tours, horseback trekking, extreme sports, and night view snaps. Also, hot place bus tours are very popular, satisfying the diverse tastes of the MZ generation (Millennials + Generation Z) and riding the upward trend.

In response, TMON announced that it plans the 'Jeju ALL IN TMON' promotion to propose reasonable Jeju travel for customers considering summer vacations. It sells over 2,600 products including airline tickets, accommodations, rental cars, admission tickets, restaurants, packages, and themed tours. Notably, 'golden-priced' airline tickets can be purchased at discounted fares based on departures during the July peak season.

Daily Hotel, operated by Yanolja, is also conducting the peak season campaign 'This Summer, Me!' The main content is providing benefits worth up to 2.84 million KRW through the 'Premium Summer' promotion throughout July. For Daily Hotel Gold members, up to 2 million points are given weekly by lottery. Points can be used for payments at domestic and international accommodations. Additionally, a coupon pack worth 760,000 KRW applicable to domestic accommodation reservations until September will be given on a first-come, first-served basis. New members can receive additional rewards worth 70,000 KRW, including a maximum 30,000 KRW discount coupon for domestic accommodations.