A clear shift toward independent travel over packaged tours is reshaping Korea's tourism market. Free Independent Travel (FIT), where individuals book their own flights and accommodations and design their own itineraries without a guide, is establishing itself as the mainstream of the travel industry.
Hana Tour (039130.KS) said Thursday that FIT users in the first quarter of this year totaled 1.48 million, the highest figure since related statistics began being compiled. After standing at around 1 million in the second quarter of last year, user numbers rose to 1.1 million in the third quarter and 1.36 million in the fourth quarter, with the upward trend continuing into this year. Growth also reached 29% year-on-year.
The shift has been particularly pronounced in short-haul destinations such as Japan and China. Japan's share, in particular, climbed to around 40%, driving the performance. Another notable feature is that travel demand has spread beyond major cities like Tokyo and Osaka to smaller regional towns. Industry observers attribute this to the rise in standalone purchases of flights and hotels, combined with improvements in online booking environments.
"Travel as Taste-Based Consumption"…Market Restructured by MZ Generation and AI
Behind the spread of independent travel lies a "taste-based consumption" trend centered on the MZ generation. As travelers increasingly view trips as experiential content, demand has grown for designing personalized routes rather than following fixed itineraries.
According to a February survey by Consumer Insight, 65% of those with overseas travel experience chose independent travel. The share, which stood at 56% in 2017, has resumed an upward trajectory since COVID-19 to establish itself as the market mainstream. By contrast, group packages have fallen to around 20%. More than 70% of accommodation bookings are now made through online platforms, and direct flight purchases exceed 80%, showing rapid changes in the distribution structure.
Travel agencies are responding as well. AI-powered customized itinerary recommendation services are a prime example. Features like Hana Tour's "H-AI," which designs routes reflecting user preferences and connects directly to booking, are expanding and enhancing convenience. Social media-based marketing has also become a key channel for boosting booking conversion rates.
"Packages Are Transforming"…Fighting Back with Hyper-Segmentation and Premium Strategies
As traditional package products shrink, the travel industry is turning to selection-and-focus strategies. Hyper-segmented products targeting specific age groups or tastes are a prime example. Themed travel aimed at those in their 20s and 30s, along with products centered on gourmet food, alcohol, and hobbies, are being launched one after another.
"Spectator travel," which combines sports viewing with tourism, has also emerged as new demand. Products maximizing fan experiences—such as itineraries for watching Major League Baseball and soccer games on the U.S. West Coast in person—are drawing attention. Travel agencies are moving away from packages centered on simple transportation to differentiate themselves with content-driven travel.
"As travel purposes and methods become more segmented, the shift to an FIT-centered structure is inevitable," an industry official said. "This is the time to create new revenue models through supply chain expansion and technological advancement."
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