[Click eStock] "Travel Industry Should Be Approached with a Long-Term Perspective... Recommendation to Increase Weight"

Daishin Securities stated on the 29th that the domestic travel industry is expected to continue its sluggish performance until next month. "Unexpected issues with TMON and WEMAKEPRICE have even caused losses," they said, but maintained an "Overweight" investment rating on the travel sector for the long term.

On the same day, researcher Im Su-jin from Daishin Securities said, "When travel payments were not settled by TMON and WEMAKEPRICE, travel agencies notified the termination of all contracts with the two companies," adding, "Based on Gross Merchandise Volume (GMV), TMON and WEMAKEPRICE account for about 2% and 3% of sales channels for Hana Tour and Mode Tour, respectively, with estimated maximum losses of 5.6 billion KRW and 4.2 billion KRW each." These losses are expected to be reflected as one-time expenses in the third quarter of this year.

Demand for package tours, which had been steady until May, sharply declined last month. The main reasons are interpreted as weak domestic consumption, decreased demand on trans-Pacific routes due to high exchange rates, and rising airfares and hotel prices related to the Paris Olympics. Researcher Im said, "In the off-season second quarter, the number of package tour customers typically decreases by 20% compared to the previous quarter, but Hana Tour saw an 18.6% decrease and Mode Tour a 25.6% decrease," adding, "Considering that this year is a recovery period for the package tour industry, the second quarter's customer numbers were disappointing and below expectations."

Researcher Im forecasted, "Due to unexpected losses from the TMON and WEMAKEPRICE incidents, it is difficult to expect strong performance even in the peak third quarter," and "The sluggish industry conditions caused by weak domestic consumption, high exchange rates, and the Olympics will continue until next month." However, "Current stock prices and earnings already reflect nearly the worst environment," and "With the Chuseok holiday effect in September, trans-Pacific and European routes are expected to show a full recovery. If the macroeconomic environment improves, a sharp recovery in package tour demand is anticipated," he added.

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