Hana Tour Expected to Be the Biggest Beneficiary in Travel Industry Recovery Period
[Asia Economy Reporter Park Jihwan] Hanwha Investment & Securities predicted on the 30th that during the unprecedented rapid recovery period, demand will be heavily concentrated on large companies in relation to Hana Tour.
Ji Inhae, a researcher at Hanwha Investment & Securities, stated, "Although it was not a disease like COVID-19, the period of sharp decline in outbound travel was during the 2008-2010 global financial crisis," adding, "Outbound travel decreased by -11% and -23% in 2008 and 2009, respectively."
Afterwards, during the recovery period in 2011, it increased by 34%. Since then, the 7-year compound annual growth rate (CAGR) has exceeded 10%.
More importantly, during the 2010 recovery period, the market share of large companies rose by the largest margin of 4 percentage points. Researcher Ji explained, "To accommodate the surging demand, sourcing of airline ticket hard and soft blocks must precede, and large companies have advantageous conditions."
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Researcher Ji forecasted, "In the rapid recovery phase after COVID-19, all travel demand will be concentrated on large companies that have endured financial difficulties and recessions so far, especially those large companies that can smoothly secure supply from airlines, and companies that can respond agilely and safely in times of crisis."
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