Travel spending is on the rise again after a decline caused by soaring oil prices. According to a sample survey of South Korean credit and debit card payment data, estimated payment amounts for travel brands in June rebounded as international oil prices stabilized, following a slump after the war in the Middle East—which had followed a record high of 5.35 trillion won in March of this year. This coincides with the decline in international flight fuel surcharges—which had soared to Level 33 in May following the U.S.-Iran ceasefire agreement—marking their second consecutive month of decline. By sector, online travel agencies (OTAs) recorded the highest transaction volume at 1.7951 trillion won, surpassing airlines (1.3603 trillion won) by more than 430 billion won; both airlines (14.3%) and hotels/lodging (13.5%) posted double-digit growth rates. The top five brands by transaction volume from January to June were Korean Air, Agoda, Nol Universe, Korea Railroad Corporation, and Trip.com, in that order.
As expected, people in their 30s were the main drivers of this growth. At most major brands—with the exception of Korean Air—people in their 30s spent the most, establishing themselves as the core customer base of the travel market. The brand with the highest proportion of customers in their 30s was Nol Universe (36.4%); when combined with the proportion of customers aged 20 or younger (21.3%), those in their 20s and 30s accounted for more than half of the total spending. By household type, single-person households accounted for the largest share at both Korea Railroad Corporation and Trip.com, demonstrating that demand for “solo travel” aligns with spending by those in their 30s. This suggests that people in their 30s—rather than those in their 40s, who have greater financial resources—are the backbone of travel spending.
◇Agoda’s Total First-Half Payment Volume Closely Trails Korean Air
Foreign-owned OTAs were the primary destination for spending by people in their 30s. When the total payment volume from January to June is converted into an index with Korean Air set at 100, Agoda scored 94.4, hot on the heels of the nation’s top airline, followed by Nol Universe (61.8), the Korea Railroad Corporation (55.3), and Trip.com (43.3).
The driving force behind this pursuit differed by generation. Agoda had the highest share of payments from people in their 30s at 34.7%—meaning one in three customers was in this age group—while Korean Air was the only top brand where those in their 40s (27.3%) outnumbered those in their 30s (25.8%). Korean Air’s share of users aged 20 and under was only 8.0%, showing a gap compared to Agoda (12.4%). This suggests that the younger the generation, the more likely they are to book flights and accommodations through OTAs rather than traditional brands.
Foreign OTAs have already far surpassed domestic OTAs in scale. The combined payment volume index of Agoda and Trip.com stands at 137.7, which is 1.4 times that of Korean Air, and Agoda’s payment volume alone exceeds the combined total (90.6) of domestic platforms Noluniverse and Yogiyo (28.8). As travel spending grows, centered on people in their 30s, the profits are flowing to foreign platforms.