As War Breaks Out, "Long-Distance Trips Are Off"... Bookings for This Destination Surge Tenfold for May Golden Holidays
Package Tour Bookings Surge for May
Short-Haul Destinations Like China and Japan Gain Popularity
Shanghai Package Reservations Jump Tenfold
Fuel Surcharge Increase Takes Effect from April
Travel Agencies Rush to Issue Advance Tickets for April
Following the aftermath of the U.S.-Iran war, demand for short-haul travel destinations, particularly to China and other nearby countries, is on the rise. With increased airfares and fuel surcharges making mid- and long-haul trips to regions like Europe less appealing, travelers are instead gravitating toward short-haul destinations that are unaffected by the conflict and easily accessible during holiday periods.
According to HanaTour on March 20, overall package tour bookings for May have increased by 15% compared to the previous year. By region, China, Japan, Southeast Asia, and Europe ranked in that order for booking share. Considering that in May of last year, Southeast Asia led, followed by China, Japan, and Europe, HanaTour explained that the surge in package bookings for China and Japan is particularly notable.
A representative from HanaTour stated, "Last year, China accounted for 16.2% of all overseas travel bookings, up 3.7 percentage points from the previous year," adding, "A double-digit year-on-year increase is also expected this year."
Modetour also reported that overall package tour bookings for May have risen by 35% compared to the previous year, with bookings for China up by 200% and for Japan by 180%. By country, bookings for China accounted for the largest share at 29%, followed by Japan (23%) and Vietnam (16%). A Modetour representative explained, "China's share increased by 14 percentage points year-on-year, marking the largest rise."
Yellow Balloon Tour also saw overseas package tour bookings for May climb by about 32% year-on-year, with demand surging for short-haul destinations such as China, Vietnam, and Japan. Notably, the number of Chinese travel customers through Yellow Balloon Tour in May rose by approximately 50% compared to the previous year, and China's share of total bookings expanded by about 5 percentage points.
Kyowon Tour reported that its overall package tour bookings for May rose by 30% year-on-year. China represented the highest share at 16.1% of total bookings, followed by Japan (14.8%) and Vietnam (11.7%).
Contrary to earlier forecasts that the war at the start of the year would sharply dampen travel demand, short-haul travel is in fact increasing. An industry source explained, "Unlike last year, this May has two separate holiday periods for Children's Day and Buddha's Birthday, resulting in holidays in both early and late May. The 'golden holiday' effect has boosted overall travel demand, with bookings concentrated on short-haul destinations where scheduling can easily be adjusted to fit the holidays."
In particular, China's announcement last November to extend its visa-free policy for South Koreans through this year has led to an increase in flights and related travel products to China, which in turn has driven up Chinese travel bookings. In addition to popular natural attractions like Zhangjiajie and Baekdusan, there has recently been growing demand among younger travelers to visit major cities such as Shanghai and Qingdao.
According to Yellow Balloon Tour, bookings for Chinese travel by region show that demand for the "Shanghai area," which includes neighboring cities such as Hangzhou, Nanjing, Suzhou, and Wuxi, has grown nearly tenfold year-on-year, while Qingdao, Yantai, and Dalian bookings have increased by about fivefold. Yellow Balloon Tour also reported that the number of bookings to Zhangjiajie and Baekdusan, China's representative tourist destinations, rose by 30% and 20%, respectively, continuing their upward trend.
As short-haul destinations like China receive greater attention, sentiment for mid- and long-haul travel, such as to Europe, is cooling. This is due to airlines like Korean Air and Asiana Airlines announcing that, starting from April 1, international fuel surcharges will be raised by more than threefold, significantly increasing the cost of flights. This is the largest increase in fuel surcharges since the current system was introduced in 2016.
Most travel agencies, including HanaTour, Modetour, Yellow Balloon Tour, and Kyowon Tour, are reaching out to customers who booked mid- and long-haul trips to Europe and other regions for April and May, encouraging them to issue their tickets in advance during March—a practice known as "early ticketing"—and seeking their consent. Since fuel surcharges are applied based on the ticketing date, not the departure date, tickets issued within this month for departures in April or May will be subject to the lower, pre-increase surcharge.
An industry official explained, "Normally, airline tickets for package tours are issued just a day or two before departure, so seeking customer consent to issue tickets for trips that are still two months away is unusual," adding, "Even if a cancellation fee is incurred later, it is generally less than the fuel surcharge increase, which is why agencies are proceeding in this way."
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Some travel agencies are also launching last-minute promotions to attract travelers who are on the fence due to the impending fuel surcharge hike. Yellow Balloon Tour, for instance, is running a promotion for popular long-haul destinations through the end of this month. Eligible packages include the 'Spain and Portugal 7 nights, 9 days package,' '10-day Western U.S. package,' and '10-day Australia and New Zealand North and South Island package.' Yellow Balloon Tour explained that any packages ticketed in advance within this month can be booked without the burden of increased fuel surcharges, and customers can secure departure without having to worry about schedule changes.
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