Korean Travel Industry Turns to Ultra-Luxury Packages to Boost Profit Amid Sluggish Demand (Image supported by ChatGPT)
SEOUL, June 3 (Korea Bizwire) — Faced with a decline in group tour bookings, South Korea’s travel industry is doubling down on ultra-premium travel packages—some costing tens of millions of won—in a bid to attract high-end travelers and shore up profitability.
Major agencies such as Lotte Tour Development, Hana Tour, and Modetour are expanding their luxury offerings, which include small-group or customized itineraries, business-class flights, five-star accommodations, and bespoke experiences. Despite their steep price tags, demand for these upscale trips is growing, with many packages selling out soon after launch.
Lotte Tour reported that 6,037 travelers used its premium brand HIGH& in 2024, more than double the previous year’s business-class Europe package customers. One standout offering: a luxury golf tour priced at ₩44.9 million per person (₩179 million per team), sold out to amateur golf enthusiasts. Another group has already booked the same package for April 2026.
Hana Tour’s bespoke luxury brand Zeus World offers fully customized itineraries with private guides. The top-tier package—a long-term Mediterranean and Eastern European tour—costs ₩95 million per person. The company saw a 16% increase in bookings and a 31% rise in sales for its premium offerings in the first quarter of 2025 compared to a year earlier.
Less Crowds, More Cash: The Rise of Bespoke Luxury Travel in Korea (Image courtesy of Pixabay/CCL)
Modetour, which operates Mode Signature, said its premium product sales accounted for 31% of total sales in April—up 16 percentage points from a year ago—and aims to raise that to over 40% by year-end. In March, it launched a new brand, Highclass, featuring themed luxury tours for groups of six or more. An 8-day France and Switzerland itinerary priced at around ₩35 million includes gourmet dining and a Swiss watch tour.
This strategic pivot comes as travel agencies contend with shrinking outbound customer numbers. While overall international departures from Korea rose slightly by 5% this year, tour operators saw a 4% to 20% decline in group bookings in the first quarter, as more travelers opted for independent travel amid domestic uncertainty and global incidents.
However, the premium sector remains resilient. Industry officials note that luxury travelers are less sensitive to economic fluctuations and more focused on exclusive, hassle-free experiences.
“People are increasingly willing to spend more for guaranteed quality and ease of travel,” said a travel industry source. “Premium packages are no longer niche—they’re becoming a key driver of revenue recovery.”
Tour operators agree. Lotte Tour credited its HIGH& brand for achieving record-breaking travel revenue in 2024, while Modetour noted that its high-margin luxury sales helped offset broader market risks in a challenging first quarter.
Lina Jang (linajang@koreabizwire.com)
