Travelers head to the departure gate at Haneda Airport in Tokyo, Japan. Yonhap News
Demand for short-haul package tours has surged despite higher airfares driven by soaring international oil prices amid the Middle East conflict, industry data showed. While demand for European and American packages with high airfare and lodging costs has weakened, travelers have flocked to nearby, more affordable destinations such as Japan and China.
According to the travel industry on the 20th, the number of package travelers sent abroad by three major travel agencies — Mode Tour, Hana Tour, and Yellow Balloon — rose 5 to 10 percent in April from a year earlier. “Songchulgaek” refers to the number of travelers sent overseas through travel agency package products. While overall package demand grew, results varied sharply by region. Travelers heading to Japan increased 30 to 40 percent year-on-year, and those to China rose around 30 percent. In contrast, travelers to Europe fell about 15 percent, while those to the Americas and the South Pacific dropped roughly 40 percent.
Demand for short-haul products was particularly concentrated in Japan and China. At Mode Tour, the number of package travelers to Japan in April jumped 47 percent year-on-year, while those to China rose 31 percent. Hana Tour also saw both Japan and China grow around 30 percent. At Yellow Balloon, short-haul destinations accounted for the majority of overseas package customers, with Japan making up 27 percent, China 25 percent, and Vietnam 25 percent.
Long-haul products to Europe and the Americas saw weak demand due to the burden of airfare. The international fuel surcharge rose to level 18 in April, increasing pressure on long-haul routes. Korean Air’s fuel surcharge for international flights departing Incheon reached up to 303,000 won one-way in April. On a round-trip basis, this added roughly 600,000 won on top of the base ticket price. In addition, European and American packages typically involve longer stays than those to Japan and China, raising lodging and meal costs as well.
Airfare pressure intensified further in May. The international fuel surcharge climbed to level 33 in May, the highest on record. In June, it will fall six notches to level 27. However, long-haul routes will still carry fuel surcharges in the 400,000 won range one-way. Even though airfare burden eases by about 110,000 won one-way compared with May, analysts say the price competitiveness of European and American products is unlikely to recover quickly.
“Rather than overseas travel demand itself weakening, more travelers are choosing nearby destinations due to cost concerns,” a travel industry expert said. “Even if fuel surcharges come down, long-haul products are weighed down by both airfare and high local prices, so the trend of demand concentrating on short-haul packages such as Japan and China is likely to continue for the time being.”
AloJapan.com