Travel Agencies Overcoming the 'Dark Age'... "Offering Performance Bonuses and Stock Options"

Norang Poongseon Discusses Payment Plans at General Meeting
Boosts Employee Morale with Performance Improvement
Expands Workforce Including Hana and Modu Tour

Major domestic travel agencies, which went through a 'dark period' due to COVID-19, are boosting employee morale as demand for overseas travel revives. They are focusing on providing performance bonuses based on improved results or offering stock options (stock purchase rights) as motivation, as well as expanding their workforce.

Incheon International Airport Terminal 1 is bustling with travelers preparing to depart. Photo by Jinhyung Kang aymsdream@

According to the travel industry on the 6th, Norangpungseon plans to discuss detailed matters regarding the granting of stock options and payment of performance bonuses to employees at the shareholders' meeting scheduled for the 22nd of this month. This move follows a significant increase in overseas travel package sales and airline ticket issuance performance in January and February this year. A Norangpungseon official said, "As the business conditions, which were sluggish during the COVID-19 pandemic, improve, we expect the first-quarter performance this year to rebound," adding, "We are considering a plan to pay a portion of the profits quarterly as performance bonuses for employees."

Previously, Norangpungseon granted stock options in July 2021. At that time, it was limited to some employees, but this time it will cover all 380 employees. Along with the normalization of the travel industry, the company is continuously recruiting staff. The number of Norangpungseon employees, which reached 553 before the COVID-19 outbreak in 2019, dropped to 298 during the height of the pandemic in 2021, but has since increased by nearly 100.

Modetour also introduced a special performance bonus system this year, planning to pay 33% of the annual operating profit target to employees if the goal is achieved. A Modetour official explained, "We have relaxed the existing performance bonus payment criteria, segmented the targets by range, and decided to operate the system temporarily so that employees can receive more rewards." As business conditions improve, all employees, except those on parental leave, have returned to work.

In addition, Hanatour established a special compensation system in March last year, agreeing to distribute performance bonuses linked to the stock price to employees until March 2024. Based on employees who have worked for two years until maturity, team members will receive a minimum of 7.7 million KRW. Reflecting stock price increases, this amount can be paid up to four times. At the end of last year, some employees in departments related to product sales that contributed to company performance also received performance bonuses.

Investment in human resources is also accelerating. In August last year, Hanatour hired new employees for the first time in three years since COVID-19, and continues to recruit new and experienced employees as needed. A Hanatour official said, "To respond smoothly to the increasing travel demand, we plan to expand the occasional recruitment, which was previously limited to some job categories, to all job categories and manage personnel according to market conditions."