Prices are rising horribly. Even things that used to be consumed without thinking are now not readily available. It seems that the cost of using all products and services has risen since COVID-19. Except for travel.
However, in the case of domestic travel, unlike last year when the fear of the corona virus was severe, this year, as travel sentiment recovered, the price range also recovered to a certain level. In particular, some 5-star hotels survived for nearly two years while maintaining their selling prices by providing additional benefits such as F&B and late check-out. This means that it has succeeded in maintaining its business while maintaining its high-end image. It seems to have great implications for overseas travel, especially package tours.
Overseas travel has only just resumed, but price competition has already become a concern. Even last year, most predicted that ticket and travel product prices would rise after the coronavirus, but the market ridiculed it. In fact, low-cost competition is an old debate in the travel industry, but this time it seems to be more sensitive. This seems to be due to the reflection of the industry’s expectations for the overseas travel market that will be opened after the corona virus. This is because many people thought that this time was an opportunity to break away from the image of ‘package = low price, low quality’.
However, if you look at some products from Saipan and Europe that have been released in the past few months, they are still, or even cheaper, than ever before. It may be viewed as a part of travel agency marketing, but from the perspective of the industry as a whole, it does not seem to be a welcome thing. Recently, there was a controversy over low-priced marketing in the blind community blind for office workers. It started when an employee of travel agency A shot down travel agency B. The gist was ‘Company B slaps prices with belated promotions every time’. Then the employee of Company B asked, ‘What is the appropriate price?’
The fair price of package tour products seems to vary depending on the point of view. It may be the price that consumers want, it may be the price that considers the time and manpower invested, or it may be the price that considers the quality. There are various viewpoints, but in order to create a healthy travel industry ecosystem, it seems to be necessary to refrain from blindly setting low prices solely to receive consumer choice. Rather, I expect the industry to advance so that it can become an atmosphere of competition based on content rather than price. Because the price and value of a product are determined by the providers, there is no need to cut the flesh.
Reporter Lee Seong-gyun [email protected]
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