5 Million Won Cruise Package Consultations Up
Expansion of European Premium Products
High Inflation and Exchange Rates Increase Near-Distance Choices
Overwhelming Formation of Japan Travel Products
As the endemic phase (periodic outbreaks of infectious diseases) fully sets in, suppressed demand for overseas travel has exploded, leading to a clear polarization in travel styles. With more people wanting to enjoy luxurious trips after a long time, home shopping channels have started offering high-priced luxury products that were previously hard to find. Meanwhile, demand for nearby travel destinations with more reasonable prices, such as Japan, which has become more attractive due to the weak yen, has also surged, resulting in a rapid increase in related products.
Expensive but Unique Destinations ‘Popular’
According to CJ OnStyle on the 5th, the luxury cruise package priced over 5 million won recorded a cumulative consultation count of 11,000 as of the 14th of last month. This represents about a 27% increase compared to 2019, before the COVID-19 pandemic. This product allows customers to enjoy up to 10 days on a super-luxury cruise visiting the Western and Eastern Mediterranean, Alaska, Dubai, and more, with buffet meals, onboard performances, spa massages, swimming, and duty-free shopping.
Lotte Home Shopping expanded its business class package, which was previously limited to Southeast Asia, to include Europe-exclusive products. These premium packages use business class seats for all itineraries and only include stays at hotels rated 4 stars or higher. The 10-day Greece package costs at least 6.59 million won, and the 11-day Italy package costs at least 6.79 million won. Both products have exceeded 1,500 cumulative consultations.
Travel Cost Burden, Japan Rapidly Rising
Due to high inflation and exchange rates increasing travel costs, Japan and Southeast Asia have emerged as popular travel destinations. According to CJ OnStyle, last month’s overseas travel package sales were most popular in the order of Thailand, Malaysia, Japan, Vietnam, and Taiwan. The Kyushu package had over 1,000 reservations last month, and the Thailand sunset yacht tour attracted more than 1,200 customers within an hour. At GS Shop, the number of broadcasts for nearby travel products increased from 18% last year to 50% this year, and consultations rose from 29% to 41%. Among the scheduled products, Japanese package tours accounted for about 90%, with Hokkaido product broadcasts recording approximately 2,000 consultations and sales of about 900 million won.
At Lotte Home Shopping, consultations for nearby travel products such as Japan and Southeast Asia accounted for about 70% last month. The top five countries by consultation volume were Japan, Eastern Europe, Taiwan, Australia, and Southeast Asia. The most popular product was the Hokkaido package, which recorded 3,000 consultations in one hour. This product is a practical package that covers key tourist spots such as Shikisai no Oka, Farm Tomita, and the Sapporo Beer Festival. Hyundai Home Shopping’s analysis of travel product consultations from May to June showed an 86% increase for Japan and a 15% increase for Southeast Asia compared to April. Based on consultation numbers, the most popular destinations were Vietnam, Japan, and China. The Vietnam Da Nang package, which includes all-suite room accommodations and access to various facilities and services such as swimming pools and spas, received 9,400 consultation inquiries.
Dual Strategy of High-End and Cost-Effective
Gmarket also saw year-on-year sales growth last month for travel and airline tickets across Japan (3200%), Southeast Asia (475%), Guam and Saipan (240%), the US and Canada (210%), and Europe (158%). Similarly, 11st recorded a 62% increase in overseas airline ticket sales, an 820% increase in overseas hotel sales, and a 284% increase in overseas package sales compared to the previous year.
With overseas travel demand exploding and diverse travel preferences emerging, the industry plans to implement a dual-track strategy that strengthens both high-end and cost-effective travel products. CJ OnStyle will sell a premium South America aurora travel package this month. On the 6th and 9th, they will broadcast Kota Kinabalu packages; on the 7th, Zhangjiajie in China; and on the 13th, Bangkok and Pattaya packages. Lotte Home Shopping has scheduled broadcasts for Europe and Japan travel products. GS Shop and Hyundai Home Shopping are expanding their Japanese travel product lineups.
An official from the distribution industry said, "The response to high-priced package products is even stronger than before the COVID-19 pandemic. Sales of nearby travel products such as Japan and Southeast Asia have also increased significantly, as these regions have relatively lower travel costs. We expect high overseas travel demand to continue for the time being, so we plan to diversify our product offerings with luxury and cost-effective options."
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