The travel industry is experiencing a resurgence as the shadow of the pandemic recedes, allowing travelers in South Korea to take to the skies once again. Domestic airlines in the country are capitalizing on this opportunity by launching various promotions to cater to the upcoming peak travel demand.
With the transition of the pandemic to an endemic phase, there has been a noticeable surge in the number of people eager to explore destinations, both domestic and international, after an extended period of restricted travel.
A Post-Pandemic Travel Boom
In May, the number of passengers on international and domestic flights using Korean airlines reached an impressive 93.29 million, marking a 23.8% increase compared to the previous year's figures. This significant recovery in demand indicates a return to pre-pandemic travel levels. In fact, the passenger volume in May 2023 reached 85.8% of the volume witnessed in May 2019, showcasing the resiliency of the travel industry and the eagerness of people to embark on new adventures.
The lowering of the COVID-19 crisis level from caution to alert has played a crucial role in boosting confidence among travelers. As restrictions ease, passengers no longer need to wear masks at airports or on airplanes, creating a more relaxed and comfortable travel experience. This positive development is expected to further fuel the surge in air travel demand during the upcoming peak season.
Favorable Factors Driving Travel Demand
The favorable external environment for air travel demand is a result of multiple factors. Stable international oil prices and exchange rates contribute to the overall affordability of travel, allowing passengers to plan their trips with greater financial ease. Additionally, the ongoing relaxation of travel restrictions by authorities adds to the appeal of exploring both familiar and new destinations.
Fuel Surcharges and the Cost of Travel
Fuel surcharges for international flights in July were announced on the 18th, following a "7-step" system. Compared to the previous year when international oil prices were considerably higher, the current fuel surcharge levels are significantly lower. The specifics of fuel surcharges may vary among airlines, as they are internally adjusted based on the distance-based system established by the Ministry of Land, Infrastructure, and Transport in 2016.
Korean Air and Asiana Airlines, two major carriers in South Korea, have imposed fuel surcharges based on the distance traveled. The rates vary depending on the destination, ranging from KRW 14,000 to KRW 107,800 for Korean Air and KRW 14,400 to KRW 84,000 for Asiana Airlines, on a one-way basis. These amounts have been reduced compared to the previous month, taking into account fuel consumption and operating scale.
Expanding Routes to Japan
The increasing air travel demand extends to popular routes for low-cost carriers (LCCs), particularly those connecting South Korea and Japan. The exchange rate between the Korean won and the Japanese yen has reached its lowest level in eight years, with 905.59 won per 100 yen. This favorable exchange rate has prompted domestic airlines to quickly expand their routes to Japan, catering to the growing demand for travel between the two countries.
Jeju Air, one of the prominent LCCs, is set to operate flights on the Incheon-Oita route starting this month and the Hiroshima route from the following month. With these additions, Jeju Air will offer routes to a total of 10 regions in Japan, providing more options for travelers.
Air Seoul is also participating in passenger promotions through their special event called "Blindly Go to Japan." This event offers discounted fares on all routes to Japan, with the total fare starting at a minimum of KRW 54,000 (to Takamatsu). The promotion is available for a limited time and on a first-come, first-served basis for all routes to Japan until the 11th of next month. The travel period covered by this promotion is from the 7th of July to the 31st of August. Jin Air, another domestic airline, is running a promotion where customers can receive discount coupons by entering the keyword "MaeJinAir" on their website's "My Discount Coupon" page. These coupons provide discounts of KRW 10,000 for international flights over KRW 100,000 and KRW 5,000 for domestic flights over KRW 50,000.
Targeting Both Peak and Off-Peak Seasons
Domestic airlines in South Korea are not only focusing on capturing the peak travel demand but also planning for the off-peak season. Jeju Air, for instance, will be selling tickets for travel from October 29th to March 30th next year through their "JJIM Special Fare" promotion. Domestic flights will be available for purchase starting from the 20th, and international flights from the 21st. This approach allows airlines to cater to travelers who are looking to plan their trips well in advance, ensuring convenience and attractive fares throughout the year.
The revival of the travel industry in South Korea is evident as travelers embrace the opportunity to explore both domestic and international destinations once again. With airlines launching various promotions to capture the increasing travel demand, passengers can expect attractive fares, expanded routes, and a more comfortable travel experience.
The combination of favorable factors such as stable oil prices, relaxed travel restrictions, and a strengthened exchange rate further contributes to the appeal of air travel. As the industry moves forward, it continues to adapt to the changing needs of travelers, ensuring that both the peak and off-peak seasons are catered to with enticing offers and promotions.
FAQs
1. What is the current state of air travel demand in South Korea?
The demand for air travel in South Korea has witnessed a significant recovery, with passenger numbers reaching 93.29 million in May, a 23.8% increase compared to the previous year.
2. What factors contribute to the increase in air travel demand?
Stable international oil prices, favorable exchange rates, and the relaxation of travel restrictions are key factors driving the surge in air travel demand in South Korea.
3. Are fuel surcharges for international flights decreasing?
Yes, fuel surcharges for international flights in July are significantly lower compared to the previous year, thanks to stable oil prices and the 7-step system implemented by airlines.
4. How are domestic airlines expanding their routes to Japan?
Domestic airlines are quickly expanding their routes to Japan due to the favorable exchange rate between the Korean won and the Japanese yen. Jeju Air, for example, is adding new routes to regions in Japan to cater to the growing demand.
5. Do domestic airlines offer promotions during the off-peak season?
Yes, domestic airlines in South Korea plan for the off-peak season as well. Jeju Air, for instance, offers special fares for travel from October 29th to March 30th next year, providing attractive options for travelers throughout the year.
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