The Dramatic 'Revival' of Jeju, Once Shunned for Overpricing
Value-for-Money Dominates Car Rentals and Accommodation Bookings
Signals of a Domestic Travel Revival...Systematic Strategy Needed
As high inflation and ongoing economic recession continue, the travel trend focused on "gasimbi" (psychological satisfaction relative to price) is shifting back toward "gaseongbi" (value for money). Whereas travel demand previously headed to destinations like Japan and Vietnam, it is now returning to Jeju Island. During the July-August vacation season this year, Jeju topped the list for airline ticket bookings, surpassing major overseas destinations. Analysts see this as an opportunity for a rebound in the domestic tourism industry.
The Dramatic 'Revival' of Jeju, Once Shunned for Overpricing
According to travel platform Trip.com on August 7, Jeju Island ranked first in airline ticket bookings for July and August this year. It outperformed popular overseas destinations such as Japan (second), Vietnam (third), China (fourth), and Thailand (fifth). Unlike the past few years, when demand for overseas travel surged after the COVID-19 pandemic, this year has seen a clear trend toward "practical consumption" and "value-for-money travel," putting the spotlight back on domestic tourism.
Hong Jongmin, head of Trip.com Korea, explained, "This summer, demand for domestic travel is higher than for overseas destinations," adding, "At the same time, consumers are increasingly focused on satisfaction relative to cost and on enjoying efficient travel close to home, which is drawing renewed attention to Jeju."
Value-for-Money Dominates Car Rentals and Accommodation Bookings
This shift in consumer behavior is evident across all travel spending categories. According to rental car booking data for Jeju, compact and practical vehicles such as the Avante and K3 accounted for the highest share at 27%. This was followed by SUVs (21%), midsize cars (19%), subcompacts (11%), and electric vehicles (9%). This reflects a trend toward practical choices based on reasonable pricing and fuel efficiency. The trend was similar for accommodation bookings. Globally, bookings for three-star hotels surged by 80% year-on-year, far outpacing the growth of four- and five-star accommodations.
The trend of preferring "practical" vacations and choosing domestic over international travel is also evident in other statistics. According to a summer vacation survey conducted by Lotte Members' research platform "Lime," which polled 1,900 men and women in their 20s to 60s nationwide for about a week starting July 8, seven out of ten respondents planned to travel domestically.
The survey found that among those planning a trip, 74.1% said they would travel within Korea, up 5.2 percentage points from the previous year. Only 25.9% planned to travel abroad, with most of those choosing nearby Southeast Asia (30.8%) and Japan (30.4%). Just 14.6% said they would travel to Europe.
Signals of a Domestic Travel Revival...Systematic Strategy Needed
Experts say this trend could signal a new rebound for the domestic travel industry. As domestic travel, which has been neglected in recent years, regains attention, there is growing consensus that local governments and the central government should seize this opportunity strategically. In particular, if regional content development and infrastructure improvements are achieved, this could become a turning point for sustainable revitalization of domestic tourism.
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