High Prices and Interest Rates Lead to Vacation Cancellations: "I'll Just Stay Home"

Inflation Rate Slows Down but Still Feels High
More Office Workers Say "I'll Just Stay Home During Vacation"

Amid the persistent impact of high inflation and high interest rates, it is reported that an increasing number of office workers are postponing or giving up their summer vacations.

Joo, a man in his 40s with a middle school daughter and an elementary school son, revealed to Yonhap News that he plans to stay home during the upcoming vacation period.

Joo said that the money spent on his children's education has increased significantly, making it feel extravagant to enjoy a vacation staying at a hotel like before. He added, "During the vacation, I plan to exercise, read books, or watch movies." Instead, he plans to wait until the off-season when travel destination prices are relatively cheaper and take a short family trip on the weekend.

Lee, a 30-something office worker living in Sejong, also said, "These days, even spending just 2 nights and 3 days with my family of four at a famous tourist spot easily exceeds a budget of 1 million won," and lamented, "It seems better to save money and focus on traveling to countries with lower prices, like Southeast Asia, during the winter vacation."

Travelers at the Departure Hall of Incheon International Airport Terminal 1 [Image source=Yonhap News]

Even those who had already planned trips are reportedly canceling or changing their schedules to save costs.

According to the Consumer Price Index trends from Statistics Korea, the consumer price inflation rate last month was 2.7%, down from 2.9% the previous month. However, the accumulated high prices still cause a significant perceived burden on consumers.

When PMi, a data consulting firm, surveyed 3,000 men and women nationwide aged 20 to 69 this month about the expected cost of summer vacation this year, the most common response, at 22.1%, was "200,000 to 400,000 won per person."

Considering that in the same survey last year, the most common response was "400,000 to 600,000 won per person" at 25%, the company explained that this year, there appears to be an increased focus on reducing budgets compared to last year.