In 2018, the average expenditure of individual overseas travel fell by KRW 50,000 from the previous year. The reasons for the change were due to shortened travel period and reduced airfare. Although the period and total cost were reduced, the average travel cost per day increased by 20,000 won, which wasbecause Korean travelers' interests had shifted from 'sightseeing' to activities involving 'fun/play' and 'foods.'
In 2018, the average cost per individual overseas trip taken within the past 1 year was KRW 1,480,000, a KRW 50,000 drop from 2017 [Table 1]. The travel time was shortened by 0.6 days from 7.2 days to 6.6 days, and airfare decreased by KRW 90,000 from KRW 730,000 to KRW 640,000. However, the cost per day excluding airfare was KRW 130,000, KRW 20,000 more than the previous year. Total travel costs have been reduced because of shorter travel period and airfare savings, but the cost of stay has rather increased.
When grouping overseas travel destinations into Asia, North America, Europe, and South Pacific, ▲ the total costs of Asia were KRW 970,000 (+KRW 10,000) on average, showing not much difference from last year. The airfare was reduced by KRW 40,000 to KRW 410,000, but expenses for local activities increased by KRW 10,000 per day, offsetting airfare savings. ▲ Airfare to North America was KRW 1,450,000 (-KRW 40,000 won), staying similar to the previous year's, but the total expense increased by KRW 180,000 to KRW 3,080,000. This was because travelers had spent KRW 30,000 more per day, for admission tickets, local traffic, and food and beverage. ▲ For Europe and South Pacific, travelers' total costs decreased (-KRW 90,000 for Europe; -KRW 70,000 for South Pacific) with their shortened travel schedule (-1.7 days for Europe; -0.6 days for South Pacific) and big savings on airfare (-KRW 150,000 for each), but the costs of travelers' stay per day increased by KRW 20,000 for each region.
The price of air tickets not only became lowered but also took a smaller portion out of the total overseas travel expenses, from 48%(KRW 730,000/KRW 1,530,000) in 2017 to 43%(KRW 640,000/ KRW 1,480,000) in 2018. The reason for the change was attributed to LCC and ticket purchase channels. In addition to expanding LCC service in Asia/South Pacific region such as Japan, Vietnam, Guam and Saipan, the spread of use of air price comparison services such as SkyScanner and special price alarming applications helped lower the airfare. The changes in travelers' activities from sightseeing to direct local experience brought the reduction of airfare portions out of the total expenses.
The results are based on the survey conducted by Sejong University`s Tourism Industry Research Institute and ConsumerInsight's Consumer Trend Research Lab since 2016 (conducted in September every year, on overseas travels taken from September in a previous year to August in a year that the survey was taken). The survey was done on ConsumerInsight`s 800,000 IBP (Invitation Based Panel), with the completes of 20,741 respondents. In terms of sampling, sex, age, and area were proportionally allocated according to population composition ratio, and data was collected via email and mobile.
[Table1] Overseas individual travel expenditure per 1 person