"Enough Money for Gangwon, Nowhere Near Vietnam"... Overseas Trips Now Seven Times Costlier Than Domestic Travel [Jumoney Talk]

Average Overseas Travel Cost Per Person: About 1.75 Million Won
"Stronger Exchange Rate Means Higher Budgets Than Before"

Editor's NoteWe are living in a time when a single serving of pork belly costs 20,000 won and a bowl of Jajangmyeon is 7,500 won. The 2024 Consumer Price Index stands at 114.18 (2020=100), and in 2025, the ongoing high inflation has further increased the burden on consumers' grocery bills. Through the "Jumoney Talk" (Week+Money+Talk) series, we aim to share stories about consumption that are closely tied to our wallets, reflecting the ever-changing prices.

With overseas travel expenses now exceeding domestic travel costs by more than seven times, an increasing number of consumers are opting for relatively nearby neighboring countries such as Japan and China, instead of long-distance and high-cost destinations, due to the impact of a strong exchange rate and inflation.

Rising Travel Costs Due to Exchange Rate and Inflation

According to the "2025-26 Changes and Prospects in Domestic and Overseas Travel Consumer Behavior" report released this month by travel research agency Consumer Insight, the average total cost per person for overseas travel last year was about 1,754,300 won. This is more than seven times the average domestic travel cost per person, which was 233,300 won.

Overseas travel costs peaked at 2,117,000 won in 2022, then decreased to 1,833,900 won in 2023 and 1,756,400 won in 2024, showing a downward trend. Immediately after the resumption of overseas travel following COVID-19, pent-up demand led people to accept higher costs, but recently, more travelers are choosing relatively shorter and more affordable trips to Asian countries, reflecting the current economic climate.

The main factors increasing the burden of overseas travel are the won-dollar exchange rate and global inflation. On the 13th of this month, the won-dollar exchange rate surpassed 1,470 won during trading hours. The report noted, "There was a time when people would say, 'If you have enough money to go to Jeju Island, you might as well go to Japan,' and even, 'If you have enough money for Gangwon Province, you could go to Vietnam.' These comments reflected the sentiment that, considering the exchange rate and prices, such trips might be worth it. However, the reality today is quite different. The exchange rate now requires a much larger budget than before."

Amid these trends, travel preferences are showing clear regional differences. The report stated, "Interest in high-cost, high-inflation regions such as the South Pacific, the Americas, and Europe has notably declined, with the United States and Canada seeing the largest decreases due to the direct impact of the exchange rate." In Southeast Asia, despite being known as cost-effective destinations, interest has also declined in some countries due to ongoing safety concerns such as crime and fraud.

Relatively Low Costs Are an Advantage... Increased Demand for Nearby China and Japan

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As a result, demand is shifting toward short-haul international routes to destinations like Japan and China, where the financial burden is relatively lower. Short-haul trips are popular among price-sensitive consumers because they involve shorter stays and lower accommodation and local expenses.

According to aviation statistics from the Ministry of Land, Infrastructure and Transport and the Korea Civil Aviation Association, the total number of domestic and international airline passengers last year was 124,793,082, a 3.9% increase from the previous year's 120,058,371. This is also 1.2% higher than the previous record set before COVID-19 in 2019, which was 123.36 million passengers (32.98 million domestic, 90.38 million international).

Looking at international passengers by region, the number of travelers on Japan routes reached 27.31 million, up 8.6% in just one year. Compared to 2019, this is a sharp 44.8% increase. This is attributed to the continued weak yen last year and the expansion of routes to include smaller cities. Whereas travelers used to concentrate on major destinations such as Tokyo, Osaka, and Kyoto, demand is now spreading to lesser-known cities like Yonago and Takamatsu.

The number of travelers on China routes reached 16.8 million, a 22% increase, recovering to 91.2% of the 2019 level. This is seen as a result of China's visa waiver for Koreans, the introduction of visa-free entry for Chinese group tourists from the end of September last year, and aggressive pricing by Chinese airlines. Meanwhile, as passenger demand concentrated on Japan and China, other Asian routes such as Southeast Asia saw a 0.5% decrease to 34.82 million over the past year.

Meanwhile, the report also predicted that interest in long-haul, high-cost destinations such as the United States and Europe will remain low this year. The report stated, "Given the current economic situation, there is a growing tendency to exclude unrealistic destinations (long-term, distant, high-cost) from consideration, and the decline in demand is expected to continue. Travel expenses are now seen as something to be 'adjusted' rather than 'expanded,' with a stronger emphasis on reduction. The best way to reduce costs is to avoid long-distance, long-term, and high-cost countries."