Up to 9-Day Lunar New Year 'Golden Holiday'... Travel Demand Rebounds After Cancellation Due to Muan Disaster

Travel Agencies See Increased Bookings for Short-Distance Destinations Like Japan
Expecting a Rebound After High Exchange Rates and the Muan Disaster
Major Domestic Tourist Hotels and Resorts Fully Booked

Before the Lunar New Year holiday last year, Incheon International Airport Terminal 1 was bustling with travelers about to depart. Photo by Kang Jin-hyung aymsdream@

The government designated the 27th of this month as a temporary holiday ahead of the Lunar New Year holiday, showing signs of recovery in travel demand. With the possibility of taking up to six consecutive days off until the Lunar New Year holiday and up to nine days of a golden holiday if annual leave is taken until the 31st of this month, consumers are rebooking overseas trips that were canceled due to the internal unrest at the end of last year and the Muan Jeju Air disaster, which had frozen consumer sentiment.

According to the industry on the 14th, Modetour recorded a 140% surge in new travel bookings departing during the Lunar New Year holiday period (January 25 to January 30) over five days from January 8 to January 12, immediately after the government announced the temporary holiday on the 27th, compared to the five days before the announcement (January 3 to January 7). This also represents a 25% increase compared to the same period last year (January 8 to January 12).

During this period, Norangpungseon reported that its booking rate increased by 2.5 times. The company explained that while Northeast and Southeast Asian regions such as Japan (40%), Vietnam (20%), and China (18%) accounted for a high proportion, interest in long-distance destinations such as Western Europe (8%) and Australia (7%) also noticeably increased. Kyowon Tour also saw a 44.5% increase in overseas travel product bookings during the same period.

Recently, the travel industry faced soaring won-to-dollar exchange rates and the Muan Jeju Air disaster last month, causing cancellation rates for travel bookings to spike ahead of the peak overseas travel season during this Lunar New Year holiday. However, news of the temporary holiday designation has led to a surge in new bookings. Still, the booking levels have not yet fully recovered to those of previous Lunar New Year holidays. A Kyowon Tour official stated, "This Lunar New Year holiday booking rate is about 80.5% compared to last year’s Lunar New Year holiday." Modetour also explained that their booking rate is about 92% compared to last year’s Lunar New Year holiday.

Therefore, the travel industry plans to actively conduct marketing to boost travel demand. Modetour will offer up to a 100,000 KRW discount coupon for bookings of remaining seats on products departing from the 22nd of this month to the 1st of next month. A Modetour official said, "We plan to conduct additional promotions after monitoring the recovery trend, including increases in booking rates."

Domestic travel demand has already recovered to previous levels. Currently, major tourist destinations’ famous resorts and hotels are nearly fully booked for the Lunar New Year holiday. Hanwha Hotels & Resorts reported that the average booking rate for resorts located in major tourist spots such as Seorak Sorano, Haeundae, Gyeongju, and Geoje Belvedere from January 25 to 29 is 99%. During this period, Sono Hotels & Resorts also reported that resort booking rates at major tourist destinations such as Hongcheon, Gyeongju, and Jeju are close to 100%.

Phoenix Hotels & Resorts’ Phoenix Pyeongchang has already completed reservations for all rooms during the Lunar New Year holiday period. A Phoenix Hotels & Resorts official said, "Jeju Phoenix Island currently has an average booking rate of about 78% for the period," adding, "Jeju Phoenix Island is expected to close with a booking rate exceeding 90% before the Lunar New Year holiday period."

Paradise Hotels & Resorts announced that the booking rate for Incheon Paradise City during the Lunar New Year holiday is 92%. A Paradise Hotels & Resorts official said, "Including Paradise Hotel Busan, the average booking rate is about 80%," and added, "We expect to easily surpass a 90% booking rate before the Lunar New Year holiday." Legoland Korea Resort in Chuncheon, Gangwon Province, also reported about a 10% increase in booking rates for the Lunar New Year holiday after the temporary holiday designation. A Legoland official said, "We expect all rooms to be booked by the Lunar New Year."

The distribution industry also expects a consumption stimulation effect from the temporary holiday designation. Although some speculate that domestic consumption may fall short if overseas travelers increase due to the extended holiday, it is forecasted that domestic consumption will revive since sales on holidays have generally been higher than on weekdays. Outlets located outside the city may see an increase in family outings during the holiday period, and the duty-free industry is also expected to benefit from increased sales due to the rise in overseas travelers.