The hard-hit travel industry in Korea does not expect any relief as trip reservations have dwindled to nearly-zero amid the coronavirus pandemic. Reservation rates for Hanatour and Modetour, Korea’s top two travel agencies, fell more than 99 percent in April and May compared to the same period last year.
“There are no cancellations for overseas trips anymore because there were no reservations in the first place. Most customers have already canceled their trips and there are no flights that can go abroad, so we are not expecting a peak season for this spring,” an official from the travel industry said.
“In Korea, the spread of coronavirus is slowing down, but it is getting worse around the world, so there is no way out of it. If it continues throughout the summer, the domestic travel industry will be wiped out,” said a travel industry expert who requested anonymity to speak frankly.
The coronavirus pandemic has also shocked the hotel industry, with the Korea Hotel Association estimating March losses at 580 billion won due to the sharp drop in reservations. Luxury hotels have not been spared either, with the Grand Walkerhill Seoul which stopped operations for a month on 23rd March, and Park Hyatt Seoul has also closed its facilities through 8th June.
For the hotels still in business, the average room reservation rate is less than 10 percent on weekdays and 15 percent on weekends. Last March, hotels nationwide averaged a 70 percent average room occupancy rate.
“As people refer to Jeju Island as a coronavirus-free area, the number of reservations has increased for the long weekend getaway and honeymoon trips. It is good to see how airlines are increasing domestic routes such as Jeju Island … However, it will take much longer for demand to recover, as the social distancing campaign is still in progress,” a Lotte Hotel official said.
