Hana Tour maintained a solid performance in the first half of 2024, recording cumulative revenue of KRW 290.3 billion and operating profit of KRW 22.2 billion, up 0.7% and 1.2% year-on-year, respectively. However, its standalone second-quarter results showed some slowdown due to external headwinds such as the high exchange rate.

In Q2 of this year, Hana Tour's revenue amounted to KRW 115.4 billion, down 3.8 to 4% compared to the same period last year. Operating profit fell to KRW 5.4 billion, a 43.6 to 44% decline year-on-year, while net profit also dropped to KRW 7.1 billion, a decrease of 36.8 to 72%. During the same period, the total number of outbound travelers stood at 894,000 (-2%), and package tour users totaled 450,000 (-2%), each declining by 2%.

The underperformance was attributed to an overall contraction in travel demand caused by factors such as the high exchange rate and rising fuel surcharges. Hana Tour explained that its operating margin declined as it strategically adjusted product prices to reduce the financial burden on customers. Additionally, revenue from the travel intermediary segment recorded KRW 68.3 billion (-9.5%), affected by a decrease in air ticket sales commission income.

On the other hand, the Free Independent Traveler (FIT) segment showed clear growth. FIT users reached 1.11 million, up 10%, with air ticket and hotel sales increasing significantly, centered on Japan and China. Chinese package tour users rose 15% year-on-year, driven by visa exemption policies and local initiatives to attract tourists. Japanese package tours also grew 7%, benefiting from expanded flight capacity and increased demand on Korea-Japan routes originating from China. The importance of online channels also grew, with online sales of packaged products accounting for 36% of gross merchandise value (GMV) in Q2, up 2 percentage points year-on-year.

Hana Tour expects profitability improvement to accelerate, driven by the entry into the peak season in the third quarter and the easing of fuel surcharge burdens.