Increase in Overseas Travelers Yet Travel Agencies Face Profit Decline
Creatrip Team
a year ago
Despite a steady increase in the number of overseas travelers in the first quarter of the year, major travel agencies in South Korea are struggling with declining profitability. Although the demand for international travel is recovering, the reduced reliance on package tours, challenging profit margins, and competition from online travel agents (OTA) are expected to lead to lower-than-expected market performance. For instance, Hana Tour and Modu Tour have reported a decrease in the number of package tour travelers compared to the previous year while general outbound travelers increased. This situation forces traditional travel agencies to seek structural changes, such as developing tailored package deals and enhancing digital platforms to align with changing consumer patterns.
