Consumer Insight 'Weekly Travel Planning Survey'
Comparison of Travel Types and Travel Agency Usage Intent Trends
Upward Trend Since the Second Half of Last Year After COVID-19 Impact
Group package overseas travel, which was hit hard by COVID-19 and strengthened social distancing measures, is making a comeback. As suppressed travel demand is stretching its wings, consumers are opening their wallets due to the advantage of being able to experience verified products with good 'cost-effectiveness (performance relative to price)'. Offline comprehensive travel agencies with sufficient know-how in group package overseas travel are expected to demonstrate their competitiveness in earnest.
As the peak summer vacation season begins, international travelers visiting Incheon International Airport Terminal 1 are moving toward the departure hall. Photo by Jinhyung Kang aymsdream@
According to the 'Weekly Travel Behavior and Plan Survey' conducted by market research firm Consumer Insight, which surveys 500 people weekly and 26,000 people annually, the proportion of respondents who prefer group packages for overseas travel increased from 24.7% in 2020, when COVID-19 occurred, to 28.7% in the first half of this year. Preference for group package travel rose to 31.9% in 2017 but gradually declined afterward, dropping to 23.6% in 2021 due to the pandemic. Then, as overseas travel began in earnest from the second half of last year when mandatory self-quarantine upon entry was exempted, it turned upward again.
The situation changed for individual travelers who arrange their own schedules for airfare, accommodation, meals, and experiences. Preference increased from 51% in 2017 to 58.4% in 2020 but fell to 54.3% in the first half of this year. Preference for airtel and aircartel products, where only airfare, accommodation, and rental cars are booked through travel agencies, also decreased from 10.1% last year to 9.2% in the first half of this year.
An industry insider said, "Although demand for overseas travel is rapidly increasing after the endemic phase, the supply of air tickets and accommodations has not yet recovered to pre-COVID-19 levels. From the travelers' perspective, since booking is complicated, they are likely to find it easier to use group packages that are composed and sold in bulk."
In fact, the number of travelers who used Hana Tour's group package products to go overseas last month was about 112,000, a 19% increase from the previous month. This is 24% higher compared to the average monthly number of travelers sent abroad in the second quarter (April to June) of this year. Hana Tour expects the number of travelers sent abroad in August and September, which include summer vacation and the Chuseok holiday, to increase even more.
According to Consumer Insight, consumers who recently traveled overseas considered itinerary/course (24.8%) and product price (21.2%) as the most important factors when choosing a comprehensive travel agency that sells group package products. Next were travel agency brand/reputation (11.6%). The intention to use by company was in the order of Hana Tour (27.0%), Mode Tour (12.4%), Norangpungseon (8.0%), Chamjoeun Travel (7.6%), Interpark Tour (4.6%), and Lotte Tour Development (2.6%).
A Consumer Insight official said, "Group package travel has the advantage of providing verified courses, restaurants, and accommodations guided by professional guides at relatively reasonable costs. It is highly likely that a 'rich get richer, poor get poorer' market will form, centered on a few comprehensive travel agencies that maintained their business base or were able to invest in marketing during the COVID-19 period."
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