[Life Chapter 3 Companies] "No Forced Shopping"... Senior Customized Travel 'Kyowon Tour'

Kim Myungjin, CEO of Kyowon Tour Business

"In the case of seniors, unlike young people, 'who they go with' is often more important than 'what they are going to do,' and they tend to prefer trips that include a proper guide rather than completely free schedules."

Kim Myung-jin, the business director of Kyowon Tour, who has been in the travel industry for over 20 years, describes the travel style of the senior generation as "a leisurely trip that appropriately blends learning and experience." On the 10th of last month, we met Director Kim at the Kyowon Tour building in Jongno-gu, Seoul. He previously worked at other travel agencies such as Sebang Travel and Yellow Balloon before moving to the comprehensive package travel agency KRT. After Kyowon Group acquired KRT in 2021, he has been serving as the business director of Kyowon Tour.

During the pandemic, Kyowon Group launched and operates a senior-specialized domestic travel brand called 'Yeohaeng Daum.' Professional storytellers (guides) accompany travelers to provide humanities-based explanations of the destinations, and by excluding shopping schedules often seen in package tours, the brand has gained attention as a 'premium travel product' through its upscale strategy.

Kim Myung-jin, CEO of Kyowon Tour, is being interviewed on the 10th at the Kyowon Tour Building in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

- Kyowon Group is well known for its education business. What prompted the focus on seniors?

▲ Kyowon Group has continuously grown as a leading domestic education company. Due to demographic changes such as a decrease in school-age population and an increase in the elderly population, it was necessary to secure new growth momentum, leading us to actively enter the travel business. Kyowon Group's targeting of the senior generation through the travel business is because the number of seniors who transcend age and are willing to spend and invest generously for themselves, seeking special experiences, continues to increase. The senior generation is characterized by high purchasing power and actively enjoying travel and hobbies with ample free time. We found business opportunities in these aspects.

- Why was the senior travel brand 'Yeohaeng Daum' launched during the pandemic in 2020?

▲ We began preparing for the launch from 2019, before COVID-19 broke out. When the virus spread the following year, overseas travel was effectively restricted, and we anticipated that domestic travel demand would naturally increase, especially among seniors who prefer package tours. Considering the social distancing policies in place at the time, we prioritized customers' health and safety when launching the product. From the moment the trip starts until it ends, we focused on strictly adhering to quarantine guidelines and hygiene management. We designed the product with a relaxed schedule to minimize physical burdens on senior customers, enabling small-group, personalized travel rather than large group tours. This tailored strategy targeting seniors proved successful and quickly established itself in the market. Currently, only domestic travel products are available.

- What are the unique features of Yeohaeng Daum targeting senior customers?

▲ Based on the slogan 'Travel as Travel Should Be,' we emphasize differentiated aspects such as curated travel, storytellers, and culturally rich trips, proposing seasonal themed tours. Seniors tend to prefer slow and comfortable travel, and we focused on creating products that meet these preferences. The core is visiting hidden attractions and travel spots nationwide while experiencing the local traditional culture. A professional storyteller accompanies every itinerary, providing customers with in-depth content such as hidden stories and humanities knowledge about the destinations. Additionally, we offer unique culinary delights and cultural experiences exclusive to the travel locations, delivering a differentiated travel experience. Thanks to this composition, many customers who have traveled with Yeohaeng Daum return for more trips. We also strive to provide high-quality domestic travel information to customers. We publish an offline travel magazine called 'Yeohaeng Daum' quarterly. Considering that the main customer base is seniors, we increased the font size and line spacing. Some customers read the magazine and then book products.

- How do you recruit storytellers?

▲ We receive applications from former overseas travel leaders of Kyowon Tour who have retired from guiding duties, or recruit through the 'Seoul 50 Plus Foundation.' The foundation connects us with middle-aged and older retirees interested in guide work. Ten applicants with diverse backgrounds such as history professors and teachers received storyteller training and signed freelance contracts with us.

- What feedback do you get from senior customers? What aspects do they find satisfying?

▲ Satisfaction with the content provided by storytellers is high. Storytellers always conduct pre-inspections and have the ability to create stories about the culture, history, and geological characteristics of the destinations. Customers also appreciate the 'no shopping, no tipping, no optional tours' policy. Usually, package tours include unwanted shopping stops, but we allow customers to focus solely on traveling. The product price includes transportation, meals, entrance fees, admission fees, and experience costs, so there are no additional expenses during the trip. Customers do not need to carry their wallets, making the travel experience completely hassle-free. Since the endemic phase, the number of so-called senior 'solo travelers' has increased, and their satisfaction is also high.

- How is the growth trend of Yeohaeng Daum?

▲ In 2022, sales grew by 150% compared to 2021. This year, we expect a 110% increase compared to last year. This is because overseas travel demand has relatively increased as the COVID-19 situation has eased. To attract more customers in the future, we plan to continue showcasing products on commerce platforms like Kakao Makers and expand sales channels to home shopping.

- Please share the future goals and plans for Kyowon Tour's senior travel business.

▲ We plan to focus on making our offerings accessible to various customer groups accompanied by seniors. Based on positive feedback from senior customers, we aim to establish a virtuous cycle system linking domestic group travel, family travel, and eventually overseas travel. Recently, just as one-month stays in Jeju Island became popular, long-term overseas stays are beginning to gain popularity, especially among retirees. Even if the number of users for long-term travel like one-month stays is small, it can have the effect of multiple short trips by many customers in terms of sales. Based on this system, we plan to expand our influence in the domestic senior travel market and increase our share in overseas package tours. Additionally, we will continue to expand senior employment creation.