Travel Agencies Rush Early Ticketing Ahead of Fuel Surcharge Hike

Culture|
|
By Kim Sun-young
||
"Book now and pay less"… Travel agencies go all-out with advance ticketing ahead of fuel surcharge hike - Seoul Economic Daily Culture News from South Korea
"Book now and pay less"… Travel agencies go all-out with advance ticketing ahead of fuel surcharge hike

South Korea's travel industry is accelerating efforts to lock in long-haul travel demand ahead of a steep increase in fuel surcharges. With rising airfare costs becoming increasingly apparent, travel agencies are deploying "early ticketing" strategies to sell off existing package products before higher rates take effect.

Major travel agencies including Norang Pungson and Hana Tour are actively encouraging early ticketing for long-haul package products to reduce the burden of fuel surcharge increases, according to industry sources on Wednesday. Since fuel surcharges are applied based on the ticketing date rather than the departure date, products departing in April or May can still benefit from pre-hike rates if tickets are issued within March.

Norang Pungson is expanding customer recruitment for Europe, North America and Australia packages through a "last chance" promotion running through the end of this month. Hana Tour is also issuing tickets this month, with customer consent, for products departing in May. The moves represent an unusual departure from the industry's conventional practice of issuing tickets closer to departure dates, pushing the timeline forward by more than two months.

Rising international oil prices are driving the urgency. As of the afternoon of the 23rd, West Texas Intermediate (WTI) crude was trading in the upper $98-per-barrel range, continuing its upward trajectory. Heightened tensions in the Middle East have fueled the oil price surge, and international flight fuel surcharges applied to tickets issued from April 1 are expected to jump two to three times compared with the previous month.

The financial impact is substantial. Based on Korean Air's rates, fuel surcharges for long-haul routes reach up to 300,000 won ($220) one way, amounting to approximately 600,000 won per person for a round trip. For a family of four, the additional cost could exceed 2 million won. The hike stems from Singapore jet fuel (MOPS) average prices surging from tier 6 to tier 18 within a single month — the largest increase since 2022. Industry officials are leaving open the possibility of further increases if elevated oil prices persist.

However, the early ticketing strategy does not always work smoothly. Package products involve groups traveling on the same itinerary, making it difficult to apply early ticketing selectively to only some customers. Travel agencies are addressing this by working to fill departure groups quickly and then issuing tickets simultaneously under the same conditions. A growing number of agencies are also proactively confirming early ticketing intentions with existing reservation holders to secure early group confirmations.

Operational complications have also emerged on the ground. When customers request early ticketing, conflicts can arise with individual airlines' ticketing policies. Processing outcomes can vary within the same product depending on the route and carrier. Cancellation fee structures add another variable. While round-trip fuel surcharges for long-haul routes have risen to as much as 600,000 won, cancellation fees for group package airfares remain capped at around 300,000 won — prompting some customers to consider a "ticket first, cancel later" approach.

"Demand to advance both reservations and ticketing timelines has clearly increased as the burden of rising airfares due to higher oil prices becomes a reality," an industry official said. "Travel agencies are responding by intensifying their strategy to expedite ticketing, particularly for existing products."

Related Video

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.