Overseas Package Tours 'Clear' Again This Year... Double-Digit Recovery in Chinese Bookings

Number of Travelers Sent by Major Travel Agencies in Q1
Record High Since COVID-19
Continued Popularity of Southeast Asia and Japan... Recovery of Chinese Preferences Among Middle-Aged and Older Adults
Steady Reservations for Q2 Including Family Month

Major travel agencies that recorded their highest performance since the COVID-19 pandemic last year are continuing their upward trend, fueled by the steady increase in demand for overseas travel packages. The number of travelers who used package tours to go abroad in the first quarter of this year reached the highest level since the pandemic. With reservations pouring in mainly for short-distance destinations such as Southeast Asia and Japan ahead of the Family Month in May, and the demand for China, a popular destination among middle-aged and older travelers, rapidly recovering, the outlook for the second quarter is also positive.

Incheon International Airport Terminal 1 is bustling with travelers preparing to embark on overseas trips. Photo by Jinhyung Kang aymsdream@

According to the travel industry on the 12th, Hana Tour's number of overseas package travelers in the first quarter of this year was about 580,000, an increase of 105% compared to the same period last year. This is about 30% higher than the 440,000 travelers in the fourth quarter, which had the highest number last year. Although the recovery rate is about 60% compared to the same period in 2019 before the outbreak of COVID-19, the company expects to quickly return to normal track due to the expansion of flight routes and diversification of popular regions.

The regional preferences of Hana Tour users in the first quarter were Southeast Asia (52.7%), Japan (27.3%), China (6.8%), South Pacific (6.0%), Europe (5.7%), and the United States (1.5%). In particular, China recovered to a double-digit share of 10% last month, up 3.9 percentage points from the previous month, as travelers visiting Baekdusan and Zhangjiajie increased with the arrival of spring. A Hana Tour official said, "Reservations for overseas travel packages in the second quarter, including May with many holidays, are steadily increasing."

Modetour's number of overseas travelers in the first quarter was about 531,000, an 80% increase compared to the same period last year. The recovery rate compared to the same period in 2019 before the pandemic is about 73%. The regions most visited by Modetour users were Southeast Asia (57%), Japan (19%), China (10%), South Pacific & Americas (8%), and Europe (5%), with short-distance destinations Southeast Asia and Japan accounting for 76% of all regions. The package reservation rates for the second quarter increased by 54% in April, 54% in May, and 40% in June compared to the same period last year. Woo Jun-yeol, Vice President of Modetour, forecasted, "International flights during the summer period this year have recovered to 98% of pre-COVID-19 levels, so the trend of increasing overseas travel will continue."

Norangpungseon saw its overseas travel package reservation rate in the first quarter increase by about 60% compared to the same period last year, and about 10% compared to the same period in 2019. The reservation rate for the second quarter also rose about 70% compared to the same period last year and about 20% compared to the same period in 2019. Notably, the number of reservations to China, along with popular regions such as Japan, Vietnam, Thailand, and Europe, recovered to about 98% of the 2019 level for the January to March period this year.

Accordingly, Norangpungseon reorganized its products for Zhangjiajie and Baekdusan, which are popular among middle-aged and older travelers, and to enhance customer service, established a dedicated lounge at the entrance of the Zhangjiajie Grand Canyon last month. This lounge provides a resting space, beverages, and local travel information for customers using Norangpungseon's Zhangjiajie package products.

In addition, Kyowon Tour Travel Easy recorded a 45% increase in the number of package travelers in the first quarter compared to the same period last year, and a 42% increase compared to the same period in 2019. Demand increased mainly for short-distance destinations with excellent accessibility such as Japan, Vietnam, Thailand, and Taiwan. In the second quarter, the reservation rate for China reached 10%, ranking third overall after Vietnam (19%) and Japan (16%), which is noteworthy. A Travel Easy official said, "After the transition to endemic, China is joining the short-distance travel market that was previously dominated by Japan and Vietnam, which is expected to disperse demand. With the summer season approaching, major airlines are increasing or resuming flights on China routes, so demand for China will increase further."