Hana Tour Reports Operating Profit of 34.3 Billion KRW Last Year... "Return to Profit"
Effect of Travel Demand Surge Following Endemic Transition
Modetour and Norangpungseon Also Expected to Rebound After Losses
Major travel agencies have recorded significant performance rebounds last year as demand for overseas travel packages increased with the transition to the endemic phase (periodic outbreaks of infectious diseases) and sales of customized travel products grew.
Hana Tour, the leader in the outbound (domestic travelers going abroad) industry, announced on the 6th that its consolidated operating profit last year was 34.3 billion KRW, turning profitable compared to the previous year’s operating loss of 101.2 billion KRW. Sales increased by 258.02% to 411.6 billion KRW. Net profit also turned positive at 60.7 billion KRW.
On the 5th, four days before the Lunar New Year holiday, travelers are lining up to check in at the departure hall of Incheon International Airport. [Image source=Yonhap News]
Hana Tour explained that "the recovery from the COVID-19 pandemic and the increase in overseas travelers were key factors in improving performance." Last year, the number of overseas travel package customers sent by Hana Tour reached 1.36 million, a 501% increase from the previous year, and the total number of customers sent, including airline tickets, rose 385% to 2.59 million during the same period. Additionally, 'Hana Pack 2.0,' introduced during the COVID-19 period, accounted for 65% of Hana Tour’s package travel product sales last year and gained popularity. Hana Pack 2.0 is designed to allow consumers to fully focus on travel by excluding shopping and optional activities.
A Hana Tour official stated, "We improved profitability by focusing on customized products and services in line with the recovery of the overseas travel market last year," adding, "This year, we plan to continue the upward trend by expanding bundled products such as flights and hotels and strengthening competitiveness across online and offline channels."
Modu Tour, which is about to announce its last year’s performance, is also expected by the securities industry to turn profitable with an operating profit of 15.5 billion KRW, compared to an operating loss of 16.3 billion KRW the previous year. The expected sales amount is 158.7 billion KRW, a 288.7% increase from the previous year. Modu Tour’s number of overseas travel customers sent last year was approximately 1.314 million, up about 327% from the previous year. Furthermore, the sales proportion of the 'Modu Signature' product, which aims for no tips and no options, expanded from 20% of total products in 2019 before COVID-19 to about 30% last year.
In addition, Norang Balloon recorded an operating profit of 6.6 billion KRW last year, turning profitable compared to an operating loss of 20.9 billion KRW the previous year, and sales are expected to increase by 354% to 99.8 billion KRW. Norang Balloon’s annual number of overseas travel customers sent last year was tentatively estimated to have increased by 430% compared to the previous year. A Norang Balloon official said, "The number of customers sent last year recovered about 95% compared to 2019, before the COVID-19 outbreak."
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