Trying to Send Mom and Dad Away but 'Surprised'... 3 out of 10 Are MZ Generation, A Package Tour with a Twist

Expanding Customer Base with Reasonably Priced Premium Products
Strengthening Major Travel Agency Brands and Products
Accelerated Targeting of Younger Demographics Expected

Premium package tours are becoming the 'new normal' in the travel industry. Until before COVID-19, premium products were considered the exclusive domain of middle-aged and older consumers with spending power, but recently, demand for these products has been increasing among the MZ generation (Millennials + Generation Z) as well. Major travel agencies are also strengthening their premium products to expand their consumer base.

According to the industry on the 17th, Kyowon Tour Travel Easy launched Travel Easy Plus (Travel Easy+) in June to target the premium travel market. An analysis of reservation data (June 25 to July 25, based on reservation date) showed that 27.1% of all reservation customers were from the MZ generation.

The increase in demand for premium packages among young people who seek cost-effectiveness (performance relative to price) is attributed to multiple factors. First, the number of premium products at accessible price points has increased, and second, the number of young people looking for travel products that allow them to focus solely on travel after the endemic phase (periodic travel of infectious diseases) has grown.

The night sky of Mongolia, emerging as a preferred travel destination for MZ generation travelers
[Photo by Kyowon Tour]

Although the main customers for premium products are still middle-aged and older people aged 60 and above, the travel industry sees MZ generation interest as essential to securing potential demand. A Travel Easy official said, "Before COVID-19, there was a strong perception that only middle-aged and older people preferred premium products. Recently, the MZ generation has shown great interest in products that allow them to enjoy high-quality travel in places like Mongolia and Thailand." They added, "We lowered product prices so that customers can experience elegant travel at an affordable price. We are advocating for 'masstige' (mass prestige) to attract younger customers."

Major travel agencies are also expanding related brands by offering premium products at reasonable prices. Previously, Hana Tour and Modu Tour introduced and operated 'Hana Pack 2.0' and 'Modu Signature,' respectively, and last month, Norangpungseon launched the premium package travel brand 'TOP PICK.' Lotte Tour Development also launched the 'HIGH&' brand in May to strengthen the premium travel product category, including business class packages, in celebration of its 53rd anniversary.

They are not targeting young customers solely with price as a weapon. They propose products that include configurations difficult to experience with independent travel or group customers with similar interests and tastes, and remove all elements that made travel inconvenient by promoting no-tip, no-option, and no-shopping policies.

On the 13th, one day before the Chuseok holiday, the departure hall of Terminal 1 at Incheon International Airport was bustling with crowds heading overseas during the holiday period. Photo by Jo Yongjun jun21@

The travel industry expects that the main target for customer acquisition competition through premium products will shift from seniors to the MZ generation in the future. An industry official said, "The MZ generation seeks new and special experiences, so they have a high preference for products specialized in experiences and gourmet food, while the senior generation tends to prioritize accommodations and flights as they prefer comfortable and pleasant travel." They added, "As premium travel demand among the MZ generation is expected to increase further, we plan to continuously expand the product lineup to satisfy their tastes."