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Travel Industry Workforce Halved...New Hiring Rush Ahead of Peak Season

Considering Q3 Demand from Summer Vacation, Holidays, and Chuseok
Hana Tour to Select About 100 Internship Positions Linked to Recruitment
Modetour and Norangpungseon Plan Additional Internship Recruitment
Kyowon Tour Switches to Rolling Hiring... Employee Numbers on the Rise

Domestic outbound travel agencies specializing in overseas trips for Korean nationals are ramping up their workforce expansion. This is to fill the labor shortage ahead of the third quarter (July to September), considered the peak season for overseas travel due to summer vacation, holidays, and the Chuseok holiday. They plan to recruit up to triple-digit numbers of internship positions linked to hiring or increase the number of recruitment rounds to secure the necessary personnel.


Travel Industry Workforce Halved...New Hiring Rush Ahead of Peak Season Travelers are using travel agency booths at the departure hall of Terminal 1, Incheon International Airport. [Image source=Yonhap News]

According to the industry on the 29th, Hana Tour is currently recruiting internship positions linked to hiring as part of this year's regular open recruitment for new employees. The application period is until the 11th of next month. The recruitment fields include product sales, aviation, and administrative support, among four departments. Hana Tour hired more than 100 new employees through open recruitment last year and plans to select around 100 interns this year as well. These interns will undergo an internship program evaluation, including on-site training and task completion from August to October, followed by executive interviews to determine final hiring.


Modetour has been recruiting internship positions linked to hiring since last month and has selected 17 people. They are currently undergoing practical training. Last year, Modetour conducted three rounds of intern recruitment, and this year, considering market conditions, they plan to add more personnel.


In addition, Norangpungseon recruited about 40 people in March for the first half of the year as internship positions linked to hiring, responsible for roles such as product operation, aviation, management, and sales, and is conducting practical training. They are also considering conducting a similar level of recruitment once more in the second half of the year.


Kyowon Tour conducted double-digit scale open recruitment for new and experienced employees for the first time since its founding in April last year. This year, they switched to rolling recruitment and are currently selecting both experienced and new employees. Separately, in September last year, they signed a business agreement with Cheongju University’s Department of Tourism Management to nurture tourism industry professionals and continue to operate a single-digit scale internship program linked to hiring.


Travel Industry Workforce Halved...New Hiring Rush Ahead of Peak Season

Major travel agencies saw their number of employees reduced to about half during the COVID-19 pandemic. Hana Tour’s workforce decreased from 2,500 in 2019 to 1,288 as of the first quarter of this year. Modetour’s staff dropped from over 1,100 to 593 by the end of last year. During the same period, Norangpungseon’s employees fell from 553 to 298 in 2021 but have recovered to 492 as of the first quarter of this year.


However, it is expected to be difficult for travel agencies to massively replenish their workforce to pre-COVID-19 levels. A Hana Tour official said, "We have naturally reduced staff by reorganizing subsidiaries operating hotels and duty-free businesses and introducing IT and automation systems in our core travel business. While it is true that there is a shortage of hands in the field, we plan to continue hiring at the necessary level, including new and experienced employees, considering market conditions."


A Modetour official also said, "The company’s call center staff, who handled complaints for products sold directly through channels such as home shopping, were outsourced starting last year, reducing the total number of employees somewhat. Going forward, we expect to maintain the current staff size by supplementing personnel as needed."


Norangpungseon is strengthening its internal structure by recovering nearly 90% of its workforce compared to 2019. Recently, they renovated shared lounges and convenience facilities for executives and employees in their headquarters building in Jung-gu, Seoul, creating new rest and workspaces including a cafeteria, open kitchen, gym, and meeting rooms.


Kyowon Tour, which acquired mid-sized travel agency KRT in 2021, has significantly increased its workforce while strengthening related businesses, such as launching the overseas travel specialist brand "Travel Easy" the following year. As of this month, Kyowon Tour has 290 employees, an 87% increase compared to May 2022 and about a 15% rise compared to 2019. A Kyowon Tour official said, "To actively respond to the increase in overseas travel demand, we have been conducting continuous rolling recruitment this year following last year’s large-scale open recruitment. We will continue to grow our size and strengthen competitiveness through talent acquisition."


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