"Stop Talent Drain"... Travel Agencies Offer Wage Increases and Performance Bonuses

Hana Tour, 3% Salary Increase... Additional 150,000 KRW Monthly
Modetour, 8% Raise and Short-term Bonus Payment
Norangpungseon Introduces Stock Options and Welfare Points

Major domestic travel agencies have raised employee wages and provided performance bonuses to boost morale. This move comes as overseas travel demand increases with the endemic phase (periodic outbreaks of infectious diseases), improving business performance, and amid a reduction in staff and worsening labor shortages since COVID-19, aiming to minimize turnover to competitors in the same industry.

Incheon International Airport Terminal 1, a travel agency counter
[Image source=Yonhap News]

According to the industry on the 4th, Hanatour increased all employees' wages by 3% through last year's salary negotiations and additionally pays 150,000 KRW monthly. A Hanatour representative explained, "This is intended to compensate for wages that were frozen due to COVID-19." Separately, since the second half of last year when overseas travel fully resumed, they have operated a quarterly performance bonus system. If company-wide goals are met, a portion of the profits is shared with the members. They also established a special reward system granting performance bonuses linked to stock prices until March 2024. Based on employees who have completed two years of service, team members receive a minimum of 7.7 million KRW, and reflecting stock price increases, this amount can be up to four times higher.

Moltour finalized an 8% wage increase and bonus payment plan the day before. Retroactive wage increases for the reference period from April to June will be uniformly applied with this month's payroll, and short-term bonuses amounting to 150% of each individual's regular wage will be paid on the 7th. Yuin Tae, CEO of Moltour, stated, "Although the travel market has not yet fully normalized and external variables exist, this decision was made to encourage the hard work of employees who endured the prolonged COVID-19 period together."

Earlier, Norangpungseon decided at its regular shareholders' meeting in March to grant stock options totaling 858,250 shares to 333 employees. The exercise price is 8,920 KRW, and the employees can exercise these options starting March 22, 2025. They also provide welfare points on occasions such as Lunar New Year, Chuseok, company anniversary, and birthdays. Additionally, Chamjoeun Travel raised wages last year at the highest rate since its founding.

The decisions by these major travel agencies reflect an intention to encourage employees who have patiently endured the company's difficulties during COVID-19. In the first quarter of this year, these travel agencies turned a profit for the first time in three years since COVID-19. Even in the second quarter, typically considered the low season for travel, performance improvement is expected as overseas travel demand increases.

Ultimately, this is a strategic move to prevent workforce outflow. An industry insider said, "As travel sentiment revives, demand is pouring in both online and offline, and related travel agencies are aggressively competing to secure customers. With labor shortages and the urgent need to recruit staff, there has been fierce competition since last year to attract workers from competitors in the same industry."

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