WiseApp, Retail, and Goods: Aggregated Data from 8 Major Companies
9.329 Trillion KRW Last Month... Twice the Amount of December 2019
Domestic Platform Interpark Tops with 226.2 Billion KRW
Amid the endemic phase (periodic outbreaks of infectious diseases) and a sharp increase in demand for overseas travel, it has been revealed that the monthly payment amount by Korean nationals using services such as accommodation, leisure, and activities through major online travel agencies (OTAs) is approaching 1 trillion KRW. This figure has more than doubled compared to just before the outbreak of COVID-19.
From Labor Day to Children's Day, the golden holiday stretch continued, and on the 3rd, Incheon International Airport Terminal 1 was bustling with travelers preparing to go abroad. Photo by Jinhyung Kang aymsdream@
According to WiseApp, Retail, and Goods, an application (app) and retail analysis service, the estimated total amount spent by domestic overseas travelers on overseas travel services through eight major OTAs last month was 932.9 billion KRW. This represents a 76% increase compared to 529 billion KRW during the same period last year. Furthermore, it has more than doubled compared to 428.4 billion KRW in December 2019, before COVID-19 cases were reported in Korea, setting a new monthly record.
WiseApp, Retail, and Goods stated, "With the significant increase in overseas travel demand following the endemic phase, the estimated payment amount on online overseas travel and leisure platforms has risen sharply," adding, "With the golden holidays in May and June and the upcoming summer vacation season, the use of services through these platforms is expected to continue increasing."
OTAs attract travelers by offering the advantage of easily checking and booking accommodation and leisure products worldwide, providing a wide range of options by price. Compared to traditional travel agencies that rely heavily on package tours and other conventional methods, OTAs are recovering faster from the impact of COVID-19. While major domestic travel agencies such as Hanatour, Modetour, Norangpungseon, and Chamjoeun Travel, which recently announced their first-quarter results, have returned to profitability after more than three years, they have only recovered about 60% compared to pre-COVID-19 levels, contrasting with the rapid recovery of OTAs.
Monthly Estimated Payment Amount Trend of Online Travel Agencies (OTA) [Photo by WiseApp, Retail, Goods]
Among major OTAs, the platform with the highest estimated payment amount by Koreans last month was Interpark, recording 226.2 billion KRW. It was the only domestic OTA to rank among the top and took first place. Following were global OTAs Agoda (225.5 billion KRW), Airbnb (219.6 billion KRW), Trip.com (101.6 billion KRW), Hotels.com (72.1 billion KRW), Booking.com (42.6 billion KRW), MyRealTrip (27.4 billion KRW), and Expedia (17.9 billion KRW).
An Interpark representative stated, "Our strategy to proactively respond to the reopening demand for overseas travel by offering differentiated travel products and services such as accommodation, packages, activities, and content from the customer's perspective has been effective."
Meanwhile, this survey result was calculated based on payment records made by Koreans aged 20 and over using credit cards, debit cards, bank transfers, and small payments on the respective platforms.
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