Kyowon Tour launched the travel industry’s first-ever Greenland package tour in November 2024, differentiating its product offerings. (Image courtesy of Kyowon Tour)
SEOUL, Feb. 23 (Korea Bizwire) — In a strategic move to increase profitability and attract new customers, South Korea’s travel agencies are rapidly expanding their offerings of premium package tours.
These upgraded travel experiences remove common frustrations found in budget packages, such as mandatory shopping trips, optional tour fees, and guide tipping, instead emphasizing quality and personalized experiences.
Hana Tour, a major industry player, is enhancing its premium package lineup through its “Hana Pack 2.0″ brand. This premium line includes accommodations favored by independent travelers, renowned local restaurants, and excludes enforced shopping stops and optional tours.
Since introducing Hana Pack 2.0, Hana Tour’s internal customer satisfaction scores have significantly improved, rising from 77 points in 2019 to 84 in 2024.
The proportion of customers choosing mid-to-high-end packages increased dramatically from 8% in 2019 to 31% by the end of 2024. Hana Tour plans to launch an even more tailored “Hana Pack 3.0,” incorporating varied themes and customer interests later this year.
Very Good Tour’s premium travel offering, the “Six African Countries Tour,” received an enthusiastic response when it aired on home shopping channel Home & Shopping last July, generating over 2,800 reservation calls within just 65 minutes and surpassing 40 billion won in total sales. The image shows Victoria Falls.(Image courtesy of Home & Shopping)
Modetour similarly boosted its premium offerings with its “Mode Signature” brand, featuring “Signature” and an upgraded “Signature Black” category.
These packages include stays at four-star hotels or higher and pre-paid essentials, eliminating unnecessary shopping stops. Mode Signature’s share of total sales rose from approximately 5% before the COVID-19 pandemic to around 20% by early 2025. Modetour aims to grow this share to 35% by the end of 2025.
Kyowon Tour’s “Travel Easy” platform introduced “Travel Easy Plus,” which recently featured South Korea’s first-ever travel package to Greenland, highlighting its unique positioning in the premium market.
The platform’s offerings include eight specialized categories, one of which—Edu Plus—strategically blends education and travel, leveraging Kyowon Group’s strengths in educational services.
Meanwhile, Yellow Balloon aims to increase its premium “Top Pick” brand offerings from 5% to 15%, while Very Good Tour plans to expand its premium product lineup from 217 to 300 options by year’s end.
Travel companies emphasize that premium packages not only yield higher profits through increased prices and margins but also generate strong customer loyalty and repeat business due to enhanced customer satisfaction.
An industry representative noted, “Growing volumes through low-cost, short-haul tours is no longer meaningful. Offering products with genuine customer satisfaction and higher profitability is now the priority.”
Lina Jang (linajang@koreabizwire.com)
