Sharp Price Decline Due to Weakened Demand and Oversupply
Airfares to Guam Drop to 100,000 Won Range, Transpacific Tickets in the 400,000 Won Range
"Concerns Over Airline Profitability and Declining Service Quality"
"Buy a business class ticket to Phuket and get one free."
After the pandemic, the explosive surge in overseas travel demand has undergone an adjustment and is now rapidly slowing down. As a result, a "price collapse" phenomenon has emerged, with business class tickets being sold at prices comparable to economy class. In fact, one travel agency is currently offering round-trip business class tickets to Phuket on a Korean airline for less than 1 million won, with a "buy one, get one free" promotion. The industry expects that the downward trend in air ticket prices will continue for the time being, as oversupply coincides with weakening demand.
Sharp Drop in Airfare Prices... "Signs of Weakened Overseas Travel Demand"
Recently, air ticket prices have plummeted one after another, and within the industry, there is a cautious analysis that this is a "sign of weakening overseas travel demand." Round-trip tickets to Guam on low-cost carriers are being sold in the 100,000 won range, and even on North American routes, full-service carriers have dropped their prices to the 400,000 won range. On some routes, cutthroat competition has already become a reality.
According to travel agency booking sites, Airline A's Busan-Guam route and Airline B's Incheon-Guam route are being sold in the low 100,000 won range, while Airline J's Busan-Guam route is in the mid-100,000 won range. North American routes are no exception. Round-trip tickets on Airline H, a foreign carrier operating the Incheon-Seattle route, were sold in the high 400,000 won range, while Korean carrier K and another foreign carrier U sold tickets in the high 500,000 won range. Considering that just a year ago, tickets to the U.S. West Coast exceeded 1 million won, prices have been cut in half. However, the industry explains that these prices are not always available, but are often offered as "last-minute discounts" by airlines or travel agencies to sell unsold seats.
"Fuel Surcharge Cuts and Oversupply... Price Decline Likely to Continue"
An airline industry official stated, "Since the second half of the year, overseas travel demand has somewhat weakened, so airlines are rolling out a series of ultra-low-price promotions to sell off unsold seats." The official added, "With fuel surcharges being lowered and oversupply in the market, the downward trend in prices is likely to persist for some time." Experts noted, "In the short term, this benefits consumers, but in the long term, it could lead to deteriorating profitability for airlines and a decline in service quality." They advised, "Consumers should carefully compare options and make discerning choices."
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