ConsumerInsight compares Overseas Travel Costs and Satisfaction by Country in 2023
- Japan and Thailand offer "Low Cost, High Satisfaction" making them the top value-for-money destinations... Next is Australia
- France, USA, and Hawaii are perceived as "High Cost, Low Satisfaction," indicating low value-for-money
- Decent travel destinations: Switzerland, Italy, and New Zealand, with ‘High-Cost, High-Satisfaction’
- Asia’s average satisfaction is equivalent to top Korean destinations, like Busan and Gangwon
- Strong preference in Asia is attributed to the low value-for-money of destinations in Korea

○ In the assessment of ‘Value-for-money’ (Cost-effectiveness) among overseas travel destinations, Japan and Thailand emerged as the most superior, while France and the USA fell short. These results are based on the cost per day and satisfaction levels of the top 27 most visited overseas destinations.

■ Satisfaction with value-for-money in overseas destinations: Japan, Thailand stand out in Asia

○ The top value-for-money destinations for "low-cost & high-satisfaction" were Japan and Thailand. Japan (ranked 20th in travel cost and 6th in satisfaction) and Thailand (ranked 26th in cost and 12th in satisfaction) had the highest value-for-money index (+14) among 27 countries [Figure, Table]. Following them were Australia (+8), Indonesia (+8), Vietnam (+8), and Spain (+7) in that order.

○ Typical examples of destinations with unsatisfactory value-for-money in terms of "high cost & low satisfaction" include France (-16), followed by the United States (-13), Hawaii (-12), and the United Kingdom (-9). The daily travel expenses in these countries ranged from 350,000 to 450,000 won on average, placing them at the top level (1st to 7th) in terms of ‘high expenses.’ However, the satisfaction level remained relatively low, ranking in the middle to lower range (13th to 20th).

○ The top destinations for "high cost & high satisfaction" were Switzerland, Italy, and New Zealand, in that order. These countries ranked at the highest level for both travel expenses and satisfaction, with minimal differences between them (ranking 2nd and 1st for cost and satisfaction, 4th/4th, and 6th/5th respectively).

■ Overseas travel cost : Total cost of 2.57 million won on average... 300K won per day

○ The average total travel expense for overseas travelers was 2.575 million won, approximately equivalent to 300K won per day. By continent, travelers spent the most in Europe with an average of 4.444 million won, followed by North America (3.557 million won), Oceania (2.239 million won), and Asia (1.446 million won), showing significant regional differences. Traveling Europe, known for its high cost and longer duration, exceeds the total expenses of the most affordable Asian destinations by more than three times.

○ When converted to a daily rate, ‘Hawaii’ topped the list as the most expensive destination, averaging 458,000 won per day, followed by Switzerland (411K won), France (408K won), and Italy and the UK (both at 390K won), primarily comprising European countries. This is due to the high cost of airfare, dining, and accommodation, which are significantly higher than in Asian countries. On the other hand, the Philippines was the lowest at 199K won, followed by Thailand, Vietnam, and Malaysia, all in the early 200K won range.

■ Asia’s average travel satisfaction, at 734 points, exceeds domestic travel

○ Overseas travel is rapidly recovering as pent-up demand is being unleashed. Given the contrasting trends of economic downturn and the surge in overseas travel, it`s expected that there will be a rise in the preference for value-for-money, highly satisfying destinations in Asia in the future.

○ Among the Asian travel destinations commonly visited by Koreans, the daily travel expenses for Japan, Vietnam, Thailand, and the Philippines are approximately 200K won, while for the domestic travel destination Jeju Island, which is known for being the most costly in Korea, it’s around 132K won. This means that traveling to Asian countries is possible at a cost about only 1.5 times higher than traveling to Jeju. ○ In terms of traveler satisfaction as well, Asia has surpassed Korean domestic travel destinations. The average satisfaction score for Korean travelers in Asia is 734 points, nearly matching the satisfaction levels of the top two domestic travel destinations: Busan at 736 points and Gangwon at 735 points. Meanwhile, it surpasses the satisfaction levels of Jeonnam, ranked third at 724 points, and Jeju, ranked fourth at 723 points, by more than 10 points. Compared to the high satisfaction levels of Japan (767 points) and Singapore (763 points), the countries with the highest value-for-money in overseas travel, the lag of Korean domestic travel destinations is concerning. Unless improvements are made to the value-for-money of domestic travel, there is a possibility that the trend of shifting towards overseas travel will further intensify.