Big Data Shows... "Signs of Recovery in Overseas Travel Curtailed by COVID-19"

KB Kookmin Card Analyzes Card Sales Amount Over Approximately Three Years Through Q1 This Year

On the 1st, officials are dismantling COVID-19 quarantine-related facilities at the arrival hall of Terminal 1 at Incheon International Airport. Incheon International Airport Corporation has reverted the operation system of the Incheon Airport arrival hall to the "pre-COVID" level in accordance with the government's revised quarantine guidelines, which include easing the use of quarantine transportation networks for overseas arriving travelers. Facilities such as local government quarantine information booths, dedicated waiting and separation areas for overseas arriving travelers, and COVID-19 information signage have been removed. Photo by Moon Honam munonam@

[Asia Economy Reporter Yu Je-hoon] KB Kookmin Card announced on the 7th that an analysis of credit and check card sales in the airline industry showed that travel demand, which had shrunk due to the COVID-19 pandemic, is showing signs of recovery.

Analyzing about three years of card sales data up to the end of the first quarter, Kookmin Card found that quarterly airline sales dropped by up to 85% year-over-year in the second quarter of 2020, but the decline narrowed to around 65% in the fourth quarter of last year, indicating a recovery trend.

The cancellation rate of sales transactions made at airlines also followed the same trend. In 2020, it was 22%, 1.8 times higher than the previous year, but last year it decreased to 17%, about 1.3 times higher. In the first quarter, when the number of COVID-19 cases was at its peak, it further dropped to 16%.

Looking at the proportion of sales transactions by payment amount at airlines, the share of transactions under 300,000 KRW was 63% in 2019, 86% in 2020, and 90% last year, showing that most airline ticket sales were paid under 300,000 KRW. Transactions under 100,000 KRW accounted for 36% in 2019, 61% in 2020, and 65% in 2021, mainly reflecting domestic airline ticket sales under 100,000 KRW.

Regarding the change in the number of sales transactions over 300,000 KRW at airlines, there was a 77% decrease in 2020 and a 79% decrease last year, whereas transactions under 300,000 KRW decreased by 20% in 2020 but increased by 7% last year, indicating active domestic airline ticket payments.

Recently, the recovery speed of airline sales for overseas travel has also accelerated. Weekly airline sales in the first quarter show that sales of transactions over 300,000 KRW, presumed to be for overseas travel, decreased by 89% compared to 2019 in the first week of January but recovered to a 67% decrease by the fourth week of March.

In the past month, when COVID-19 cases exceeded 100,000, the age distribution of customers using airlines was 30% in their 20s, 24% in their 30s, 21% in their 40s, 18% in their 50s, and 7% aged 60 and above, with those in their 20s and 30s accounting for 54% of transactions. Especially, for transactions over 300,000 KRW presumed to be for overseas travel, women in their 20s accounted for 17%, men 10%, women in their 30s 29%, and men 25%, indicating that the 20s and 30s generation is preparing for travel both domestically and abroad.

A KB Kookmin Card official said, "Although airline sales sharply declined due to COVID-19, the rate of decrease is gradually narrowing," adding, "Despite the absolute decrease in sales, the reduction in cancellation rates reflects expectations of an endemic, and we hope that with the swift end of COVID-19, sales in the airline and travel industries will recover quickly."

This content was produced with the assistance of AI translation services.