"With Costs Rising, Will Demand Finally Drop?... 'I'd Rather Enjoy Close Destinations'—Japan and China See Surging Travel Demand"

Short-Haul Destinations Preferred Due to Airfare and Local Expenses
Long-Haul Packages to Europe and the Americas Lose Momentum

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Although the burden of airfare has increased due to the sharp rise in international oil prices following the Middle East war, demand for overseas travel itself has not declined.

Instead, demand is shifting away from long-haul destinations like Europe and the Americas, where airfares and local expenses are high, toward short-haul package tours to countries such as Japan and China, where overall travel costs are relatively low.

According to the travel industry on May 21, the number of outbound package travelers handled by the three major travel agencies—Modetour, Hanatour, and Yellow Balloon Tour—in April rose by 5 to 10 percent compared to the same period last year. The term "outbound travelers" refers to the number of people sent abroad on package tours.

Trends varied by region. The number of outbound travelers to Japan increased by 30 to 40 percent and to China by about 30 percent year-on-year, while the numbers for Europe fell by around 15 percent and for the Americas and South Pacific by about 40 percent.

Short-haul demand was concentrated on Japan and China. Modetour saw a 47 percent increase in its April package travelers to Japan and a 31 percent increase to China compared to a year earlier. Hanatour also recorded increases of around 30 percent for both Japan and China. At Yellow Balloon Tour, Japan accounted for 27 percent, China for 25 percent, and Vietnam for 25 percent of total outbound travelers, indicating a continued high share for short-haul destinations.

In April, international fuel surcharges for flights rose to level 18, significantly increasing the cost of long-haul routes. For Korean Air international departures from Incheon, the one-way fuel surcharge reached as high as 303,000 won. On a round-trip basis, this adds approximately 600,000 won to the ticket price. Package tours to Europe and the Americas also involve longer stays, adding to costs for accommodation and meals.

In May, international fuel surcharges soared to an all-time high of level 33. Although they will drop by six levels to level 27 in June, they are still considered high.

An industry official commented, "Rather than a decline in overseas travel demand, the trend is shifting toward closer destinations due to increased airfare and local expenses. Even if fuel surcharges decrease somewhat, the overall cost burden for long-haul travel remains significant, so the preference for short-haul package tours to Japan and China is likely to continue for the time being."

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