SOUTH KOREA. A study by Incheon International Airport Corporation (IIAC) of 1,000 people above the age of 18 (600 Koreans and 400 foreigners – Chinese & Vietnamese) reveals strong interest among both Koreans and foreigners to travel internationally via so-called ‘travel bubbles’ with lower COVID-19 infection risk, writes The Moodie Davitt Report Senior Retail and Commercial Analyst Min Yong Jung*.
Travel bubbles, also known as travel corridors and corona corridors, are essentially an interim exclusive partnership between countries that have displayed success in containing and combating the COVID-19 pandemic. Singapore’s government has introduced several such corridors and is extending the concept to Hong Kong soon.
The IIAC survey shows a significant increase in those who said yes they will travel if there is a travel bubble – 5 in 10 Koreans and 7 in 10 foreigners would travel under such conditions. The percentage of those who answered yes to travelling before the concept of the travel bubble was just 11% for Koreans and 21% for foreigners.
Q) Would you travel in a travel bubble? (Before = before travel bubble, After = after travel bubble)
Chart: Koreans asked would you travel now – before travel bubble just 11% said yes and 56% said no, while 33% said do not know. Asked the same question on would you travel after the government forms travel bubbles the same people answered 53% for yes and 47% no. Interestingly those who were undecided before the notion of a travel bubble now are able to make up their mind and most answered yes.
Chart: Foreigners asked if they would travel now most replied no (79%). But with a travel bubble the migration from no to yes is significant with the number of yes replies increasing from 21% before to 72% after.
Q) What are your reasons for travelling with a travel bubble in place?
What are potential travellers who are unable to travel at present looking forward to most? When asked their motive to travel, Koreans replied mostly for sightseeing while foreigners selected food and beverage as the biggest reason.
Chart: Koreans replied that sightseeing is the #1 reason (53%) for travelling after a travel bubble. Food and beverage received 37% of responses and response for shopping ranked lowest at 11%.
Chart: Foreigners answered that food and beverage is the number one reason for travel post the formation of a travel bubble to Korea with 35% of responses. Sightseeing is behind F&B but surprisingly the number of responses for shopping was quite low at 16%. Given the size of Korea’s duty free market the study is a concern for travel retail industry stakeholders who urgently need Chinese and Vietnamese travellers to shop in Korea’s beleagured duty free and domestic retail channel.
Q) Why would you travel with a travel bubble in place?
When asked why you are traveling after the formation of a travel bubble most replied that the risk of infection is lower. Infections in Korea, China and Vietnam are all very low and all three countries are respected internationally for controlling the pandemic.
The survey result which reveals that 50% are willing to travel if the risk of COVID-19 is lower shows the impact the coronavirus is having on potential travellers. 39% replied they would like to visit new destinations, while just over 11% said they look forward to visiting their favoured destinations. This suggests an inflow of travellers to new areas outside of the favored destination by the outbound travellers from Korea, China and Vietnam.
Q) Why would you not travel even within a travel bubble?
Chart: Most responses (79%) replied that even with a travel bubble the risk of COVID-19 infection is a concern and they would not travel. This survey result emphasises the need to reinforce measures to decrease public concerns about infection risk and enhance safety measures during travel.
IIAC’s Airport Industry Technology Research Institute Professor Yu-Jin Choi, who conducted the study and survey, tells The Moodie Davitt Report that the findings are positive as it reaffirms people’s desire for outbound travel. Professor Choi believes that although the risk of infection inevitably weighs on people’s minds, measures to enhance safety and lower transmission risk will help to revitalise the travel retail market.
*Note: Korean national Min Yong Jung, formerly based in London and now in Seoul, is Senior Retail and Commercial Analyst at The Moodie Davitt Report. His appointment in June 2019 was the first of its kind in travel retail media. It marked the creation of the Moodie Davitt Business Intelligence Unit, a new division designed to provide a previously unseen level of research and analysis for the travel retail channel.
Do you have research needs related to the Korean and Asia Pacific travel retail and luxury markets? Min Yong Jung can be contacted at minyong@moodiedavittreport.com
