"A Week of Overseas Travel is a Must... Nearly 2 Million Won Per Person in Expenses"

Consumer Insight 'Weekly Travel Behavior and Plan Survey'
Travel Duration, Total Cost per Person, Daily Expenses, etc.
Increase Larger than Domestic Travel... Impact of Golden Holidays and High Inflation
Forecast to Re-enter the Era of 20 Million Annual Overseas Travelers

Since the transition to endemicity (periodic outbreaks of infectious diseases), demand for overseas travel has rapidly increased, raising the possibility that the annual number of overseas travelers this year will exceed 20 million for the first time since the outbreak of COVID-19. Although the level has not fully recovered to the pre-pandemic (global pandemic) stage, the average travel duration and expenses spent locally by tourists who ventured abroad have increased compared to before the infectious disease outbreak.

Overseas 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 the market research firm Consumer Insight, which surveys 500 people weekly and 26,000 annually, the average travel duration of adult respondents aged 19 and over who experienced overseas travel in the past six months as of October was 6.29 nights. During the same period, the total expense per person averaged 1,956,000 KRW, and the daily average expense was 268,000 KRW. Compared to the previous month, the travel duration (5.88 nights), total expense per person (1,732,000 KRW), and daily expense (252,000 KRW) all slightly increased.

Compared to the same period in 2019 before the COVID-19 outbreak, all these figures show a much more pronounced upward trend. According to the COVID Travel Index (TCI) developed by Consumer Insight, the overseas travel duration (TCI 118), total expense per person (TCI 133), and daily expense (TCI 115) all exceeded 100. The TCI is an index used to compare differences between pre-COVID-19 and current times. A value above 100 indicates an increase, while below 100 indicates a decrease. Based on this, the average travel duration is estimated to have increased by about 18%, total expense per person by 33%, and daily expense by approximately 15% compared to four years ago.

An industry insider explained, "This year, there were golden holidays including Children's Day in the first half, and in the second half, summer vacation season and Chuseok holidays overlapped, allowing many travelers to plan their schedules more leisurely and travel abroad." They added, "As the number of travelers going overseas increased after a long time, the travel duration also lengthened." They further noted, "Compared to before COVID-19, prices for airfare, accommodation, food, and other travel necessities have generally risen," adding, "The increase in expenses is an unavoidable aspect."

On the other hand, as of October this year, the average travel duration (2.01 nights), total expense per person (231,000 KRW), and daily average expense (77,000 KRW) for domestic travelers over the past three months showed little difference or only a slight increase compared to pre-COVID-19 levels when applying the TCI. This indicates relatively more investment in overseas travel.

With the revival of overseas travel consumption sentiment, the travel industry is closely watching whether the annual number of overseas travelers will reach 20 million again this year. According to the Ministry of Justice and the Korea Tourism Organization, the cumulative number of overseas tourists up to October this year was 18,238,428. The industry expects the number to comfortably exceed 20 million when adding the number of departures in the last month and this month. The number of overseas travel package customers (including packages and airfare) from major travel agencies, which can gauge this trend, is also on the rise. Hanatour's number of customers in November was 143,431, a 219% increase compared to the same period last year. During the same period, Modetour's number of customers also increased by 139% to about 128,000. Modetour also recorded the highest number of overseas package reservations last month since February 2020, when COVID-19 first occurred.

However, the number of overseas travelers this year is 64% compared to 2019, when a record high of 28,714,247 people traveled abroad, and 72% for the cumulative total from January to October. An industry insider said, "Although demand for overseas travel has increased and air routes have expanded, concentration in specific regions such as Japan and Southeast Asia continues," adding, "It will take time for demand to recover in China and long-distance destinations that were popular before COVID-19."