The travel intermediaries industry in South Korea is expected to grow at an annual growth rate of 4.9% in the next four years, according to a report by the UK-based research firm BRICdata.
According to BRICdata, the country’s rising average disposable income levels, the growing number of business opportunities, decreasing inflationary forecast, growth of employment opportunities and increasing numbers of corporate and leisure travellers contribute to the growth of the industry.
Factors including the country’s developing economy and fewer restrictions on movement are also expected to drive the growth of the industry.
Rising tourist volumes and subsequent growth is primarily due to the country’s robust economic growth, initiatives taken by the government to promote tourism and tourism-related activities, increasing volume of business activities, and high internet penetration that encourages the growth of buying travel and tourism services online.
In an attempt to establish branches in South Korea, the Ministry of Culture, Sports and Tourism of the Republic of Korea has permitted the establishment of wholly foreign-owned travel agencies in the country, besides lifting of the restrictions for foreign-invested travel agencies.
During 2012-2016, South Korea’s online travel site market will witness significant consolidation, with the entry of foreign operators such as Expedia, Carlson Wagonlit Travel and BCD Travel, the report notes.
In addition, travel intermediaries are offering metasearch engines to their customers in order to provide fast services and in a bid to create a niche for themselves in this competitive arena.
By offering travel applications and enabling users to make bookings from their mobile phones, travel service providers are trying to capitalise on the growing South Korean mobile phone base, the report concluded.
The full report ‘Emerging Opportunities and Growth Prospects in the South Korean Travel Intermediaries Industry, Analyses and Forecasts to 2016’ is available from BRICdata. Click here for more details.