The travel sector is experiencing considerable difficulties due to escalating oil prices, which have prompted both airlines and travel agencies to adopt cost-saving measures. Kyowon Tour has announced the implementation of an unpaid four-day workweek for its employees, marking a notable response to increased fuel surcharges following soaring aviation oil prices. Similarly, Teacher Tour and other mid-sized agencies are adjusting their operations to adapt to the economic pressures.
Major Korean airlines, including Jeju Air and T'way Air, have responded by reducing flights; Jeju Air cut 187 international flights from May to June, while Jin Air decreased 176 flights mainly to destinations like Phu Quoc and Guam. Industry experts express concern that prolonged high fuel costs could prolong route suspensions, adversely affecting the upcoming summer travel season.
In anticipation of ongoing challenges, some agencies like Interpark Tour have taken preemptive measures, including disbanding certain teams, such as the package team. Experts warn that if airlines continue route reductions, travel agencies may further narrow their product offerings, potentially collapsing some travel options for consumers.
Industry analysts highlight that these operational hardships, if sustained, could lead to broader industry contraction. Despite seasonal buffers, persistent high oil prices threaten to dampen the recovery of the travel market. Officials are closely monitoring industry responses and government interventions that could stabilize the sector amid ongoing economic pressures.
