As high prices and prolonged exchange rate fluctuations increase vacation costs, the dynamics of the domestic and international travel markets are rapidly changing this summer. While South Koreans are opting for short, budget-friendly trips to nearby cities like Japan and Vietnam, foreign tourists visiting Korea are focusing on wellness activities such as skin care, body scrubs, and health check-ups to rejuvenate both body and mind.
Asian Travelers Seek Value in Smaller Cities as Major Cities Decline
This summer, the keyword for South Korean travelers heading abroad is summarized as 'L.I.T.E.' An analysis of flight and hotel search data during the peak season of July and August by global hotel search platform HotelsCombined and travel search engine Kayak shows a clear demand for 'light travel' that prioritizes value.
Japan accounted for over 30% of overseas flight searches, ranking first, followed by Vietnam, China, and Thailand. This trend is attributed to the historic depreciation of the yen and high accessibility. Notably, China saw a 6.4% increase in flight searches compared to the previous year, driven by its visa-free policy and reasonable prices.
In hotel searches, a trend toward enjoying the charm of 'small cities' away from major urban centers has emerged. Seven of the top ten locations with the highest search growth were in Japan, with Miyakojima, known for its emerald waters, experiencing a 27% surge in searches compared to last year. Cities like Kobe and Kitakyushu are also gaining popularity as alternatives.
Travelers are also showing a preference for efficiency in their lodging choices. Short stays of one to two nights accounted for 46% of hotel searches. While the proportion of five-star hotels has decreased due to cost considerations, there is a strong preference for three- to four-star hotels that offer a balance of quality and affordability.
Foreign Tourists Embrace K-Wellness for Health and Beauty Treatments
As South Koreans head to overseas small cities, the inbound tourism market is witnessing a surge in 'Karecovery' trends. Data from the inbound tourism platform CreateTrip shows that the purpose of travel for foreign tourists is rapidly shifting from mere sightseeing to wellness and recovery activities, including dermatology, health check-ups, and traditional Korean medicine.
In fact, CreateTrip's total transaction volume in the first half of this year grew by 34% compared to the same period last year, with transactions in the dermatology category skyrocketing by 411%. The average spending per person also increased by 140%, indicating a significant rise in expenditures on beauty treatments.
Notably, the demographics and areas of medical tourism are diversifying. While the beauty medical market was previously dominated by Asian tourists, there has been a significant influx of Western tourists. American tourists accounted for 55% of health check-up bookings and 43% of traditional Korean medicine bookings, expanding their focus to comprehensive health management. Taiwanese tourists continue to show strong interest in dermatology and ophthalmology.
Traditional bathing culture and pharmacies are also becoming popular tourist attractions. The transaction volume for 'one-person scrub shops' offering Korean-style body scrubs increased by 462% compared to last year, and spa bookings rose by 67%. Notably, pharmacy visit reservation products, which became active this year, accounted for 23% of total wellness bookings. Foreigners flocked to pharmacies in downtown Seoul, creating a bustling scene as they sought 'cosmeceutical' products that blur the line between pharmaceuticals and cosmetics.
Increased Interest in Local Tourism Boosts Regional Destinations
This shift in travel trends is positively impacting regional small cities, expanding beyond traditional tourist hubs like Seoul and Jeju.
For domestic travelers, cities like Donghae, Jecheon, Gyeongju, and Namhae are gaining traction, as evidenced by the increase in hotel search rates, reflecting a growing interest in unique local destinations.
Foreign tourist traffic is also dispersing to regional areas. In Busan, a key hub in the Yeongnam region, CreateTrip reported a 301% increase in transaction volume in the first half of this year compared to the previous year. Newly launched dermatology reservation products in Busan accounted for 64% of the city's total transaction volume, emerging as a new inbound tourism strategy. Beauty services such as hair salons (up 144%) and makeup (up 40%) are also experiencing growth.
Gyeongju has seen a 61% increase in transaction volume, particularly in day tour products. Recently, a girl group member from Gyeongju was appointed as a tourism ambassador, and local marketing efforts leveraging the K-pop fandom are expected to further spread foreign tourist traffic beyond Seoul to regional cities.
* This article has been translated by AI.
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