"Overseas Travel, Average Spending of 1.95 Million Won"… 40% Increase Compared to Pre-COVID Due to High Inflation

Consumer Insight 'Domestic and Overseas Travel Trends' Report

"Overall Increase in Fuel, Accommodation, and Meal Costs"
Average Travel Duration 7.41 Nights as of April

As the endemic phase (periodic outbreak of infectious diseases) arrives, demand for overseas travel is rapidly increasing, and the expenses incurred by travelers have risen by more than 40% compared to before the COVID-19 pandemic. This is interpreted as the impact of changes in the international situation following Russia's invasion of Ukraine and the surge in prices after the reopening of economic activities affecting the tourism market as well.

Incheon International Airport Terminal 1 is bustling with travelers preparing to embark on overseas trips. Photo by Jinhyung Kang aymsdream@

According to the 'Domestic and Overseas Travel Trends' report released on the 8th by Consumer Insight, a specialized consumer research organization, based on a survey of 2,000 men and women aged 19 and older, the average travel duration for those who traveled abroad as of April this year was 7.41 nights, and the total expenses were found to be an average of 1,951,000 KRW. Consumer Insight applied its self-developed 'Travel COVID Index (TCI)' to this survey. The TCI quantifies the difference between the same period in 2019 before the COVID-19 outbreak and the current period, intuitively showing the degree of change during that time. With an index of 100 as the baseline, a higher number indicates an increase, and a lower number indicates a decrease.

Among the survey results, the TCI for travel duration and total expenses were 142 and 141 respectively, showing an increase of more than 40% compared to before COVID-19, marking the highest levels among all indices. A travel industry official explained, "Costs for airline fuel, local accommodation, meals, and leisure activities have risen significantly due to inflation, and labor costs in the tourism industry have also increased compared to before COVID-19, so overall overseas travel expenses appear to have increased." Additionally, Consumer Insight analyzed that the increase in demand for long-distance destinations such as the Americas and the South Pacific, rather than Asia, contributed to longer stays and higher expenses.

Domestic and International Travel Trends [Data=Consumer Insight]

As of April this year, the overseas travel experience rate was 19.4%, recovering to about half of the 39.7% recorded in the same period in 2019. The TCI for this item was 49. The future overseas travel planning rate was also 44.6%, reaching about 82% compared to before COVID-19. However, it is expected to continue rising as it increased by about 20 percentage points from 25.9% in the same period last year.

The domestic accommodation travel experience rate was 66.2% as of April, with a TCI of 102, showing a level similar to before COVID-19. The average duration of domestic accommodation travel was 1.93 nights, and total expenses were 235,000 KRW. The TCI for total expenses was 115, indicating an increase of about 15% compared to before COVID-19. Among accommodation types, 'camping and outdoor camping' had a TCI of 164, increasing by more than 60% compared to four years ago, followed by 'hotels' with a TCI of 132, which rose by more than 30%. Regionally, the TCI increased in Gangwon-do (109) and the Seoul metropolitan area (105), while Jeju Island saw a slight decrease to 98.

Consumer Insight stated, "As demand for overseas travel expands, Jeju Island's market share has decreased," and added, "Due to the impact of high inflation, overall travel costs are expected to increase even in domestic accommodation travel."