Summer Vacation a Pipe Dream?... Soaring Airfare and Accommodation Costs Increase the Number of 'Travel Give-Up Tribe'

Soaring Airfare Prices Burden Travelers
July Fuel Surcharges Hit Record High

Travelers are coming and going at the departure hall of Incheon International Airport. [Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] # Office worker Mr. Oh (27) had planned to go to Hawaii for his summer vacation but gave up on the plan. Although he decided to travel abroad as the skies opened up following the end of social distancing measures, the soaring airfare prices became a burden. Before the spread of COVID-19, the round-trip airfare to Hawaii was under 1 million KRW, but it is currently trading between 1.5 million and 2 million KRW. Mr. Oh said, "I wanted to go abroad for vacation, but with the rise in airfare and accommodation costs, I decided to postpone it," adding, "I also looked into Jeju Island, but it was just as expensive."

As the first summer vacation season after the end of social distancing approaches, demand for travel continues. However, many are reconsidering their trips due to increases not only in airfare but also in accommodation and food expenses. With vacation costs rising, a new term combining vacation and inflation, 'vacaflation,' has emerged. Some people express concerns about the costs and either postpone their travel plans or choose to stay home.

According to the 'May Consumer Price Trends' recently released by Statistics Korea, international and domestic airfares rose by 19.5% and 10.2%, respectively, compared to a year ago. Passenger ferry fares also increased by 9.2%. The rise in petroleum prices appears to have significantly impacted transportation costs.

Accommodation fees are also on the rise. Statistics Korea reported that in April, hotel accommodation fees and domestic group travel expenses increased by 5.4% and 20.1%, respectively, compared to the same month last year. This is expected to place a considerable financial burden on travelers during their vacations.

Travelers are moving through the duty-free area at Incheon International Airport. [Image source=Yonhap News]

Online communities are also filled with posts expressing concerns about the soaring travel costs. One netizen said, "I want to travel abroad, but airfares are too expensive. I used to enjoy going overseas, but I couldn't because of the COVID-19 situation. I was really craving travel, but seeing the airfare prices, I can't just go. I don't know when airfare prices will stabilize."

University student Mr. Moon (25) also said, "I was planning to travel around Europe for two weeks before graduation, but the airfare has risen so much that it's burdensome. I even considered living in Jeju Island for a month, but the cost of living there makes it hard to decide. For now, I'm working part-time to save money."

Meanwhile, with the fuel surcharge set to increase next month, travelers' burdens are expected to grow further. The fuel surcharge is a fee airlines charge separately on fares to compensate for losses due to rising oil prices. When the fuel surcharge increases, the total airfare consumers pay also rises.

Next month, Korean Air's international fuel surcharge will rise by three levels to level 22, with fees ranging from 42,900 KRW to 339,300 KRW depending on one-way distance. Asiana Airlines will also apply level 22 next month, charging between 46,900 KRW and 267,300 KRW based on one-way distance. Level 22 is the highest level since the distance-based fuel surcharge system was introduced in July 2016.

Meanwhile, the government recently lifted aviation regulations that had been restricted due to COVID-19. The Ministry of Land, Infrastructure and Transport lifted the restrictions on the number of aircraft arrivals per hour and the no-fly hours at Incheon Airport, which had been in place since April 2020 to prevent overseas COVID-19 inflow, after two years and two months.

As a result, airlines can now supply flights according to demand without limits on the number of additional flights, and the hourly aircraft arrival capacity at the airport has recovered from 20 to 40, the pre-COVID-19 level.

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