Travelers turn to domestic vacations as Iran war raises airfares
Published: 08 Apr. 2026, 12:38
![Travelers at Incheon International Airport on April 5 [NEWS1]](https://koreaseafood.online/data/photo/2026/04/08/0a8be9cd-210c-4458-b2c4-5742f8b84138.jpg)
Travelers at Incheon International Airport on April 5 [NEWS1]
Travelers are turning to domestic destinations as the Iran war hikes airfares and continuously shakes the dollar-won exchange rate.
“Compared to before, direct flights to Bangkok operated by low-cost carriers have decreased significantly, and even the remaining tickets seem to be about 2.5 times more expensive,” said Kim Na-young, a resident living in Geumjeong District, Busan. Kim originally planned to travel to Bangkok, Thailand, in April to see a favorite celebrity, but recently canceled the plan because plane tickets had risen too much.
Kim was not the only person to change plans due to rising airfare. Kim Yeon-su had been planning a trip to Europe for May, but also changed plans after the round-trip airfare rose by more than 1 million won ($676).
“With the rising exchange rate already making currency exchange more burdensome, the increase in airfare ultimately led me to give up the trip,” Kim Yeon-su said. “I’m now looking into hotels in Korea to instead enjoy a 'hocance.'" Hocance is a portmanteau of hotel and vacance, the French word for vacation, referring to a hotel staycation.
The Korean won closed on Tuesday at 1,504.2 against the U.S. dollar in daytime trading as of 3:30 p.m. The exchange rate, which had been in the 1,300 won range in the middle of last year, hit 1,400 won starting in September and has recently remained in the 1,500 won range.
![A photo showing aircraft parked on the apron at Incheon International Airport on March 22 [NEWS1]](https://koreaseafood.online/data/photo/2026/04/08/5ab6d486-e291-4081-af30-c8293d1c2b8d.jpg)
A photo showing aircraft parked on the apron at Incheon International Airport on March 22 [NEWS1]
At the same time, international oil prices have risen significantly, causing fuel surcharges on international airline tickets in April to increase by as much as three times compared to the previous month. A fuel surcharge is an additional fee imposed on fares by airlines to offset the burden of rising fuel costs.
Demand among domestic travelers for long-distance international trips has declined, while domestic travel and short-haul overseas travel to destinations such as Japan have increased.
The travel and home shopping industries are sensing these changes and are also witnessing changes in consumer demand, responding by rapidly restructuring their product offerings.
In fact, not a single long-haul travel package to destinations such as Europe and Australia was scheduled last month, according to Shinsegae Live Shopping, while typically around 10 such travel packages are lined up per month on the channel.
Lotte Home Shopping also reported that the number of overseas travel consultations in March fell by 10 percent compared to the usual level following the outbreak of tensions in the Middle East on Feb. 28.
![Visitors look at information on domestic travel destinations at the 2026 Naenara Travel Expo held at COEX Magok in Gangseo District, western Seoul, on March 19. [YONHAP]](https://koreaseafood.online/data/photo/2026/04/08/edfc23bf-c36b-4110-a61d-282a74edd8d7.jpg)
Visitors look at information on domestic travel destinations at the 2026 Naenara Travel Expo held at COEX Magok in Gangseo District, western Seoul, on March 19. [YONHAP]
At the same time, travel platform Yeogi Eottae said its domestic travel-related revenue in the first quarter of this year increased by double digits compared to the same period last year.
“With high exchange rates and high oil prices combined with geopolitical instability, demand for long-distance travel has dropped significantly, and even bookings that can be canceled are being canceled,” a Shinsegae Live Shopping representative said.
“Instead, domestic travel programming increased by 18 percent last month, and short-haul overseas travel rose by 33 percent, and we are continuing to develop new related products.”
The increase in domestic travel demand among travelers due to the high exchange rate has been ongoing since last year.
Overseas travel experience rate among domestic travelers in the fourth quarter of last year stood at 4.8 percent, similar to 4.7 percent in the same period the previous year, according to the Korea Tourism Organization. On the other hand, the domestic travel experience rate reached 51.9 percent during the fourth quarter of last year, up by 4.0 percentage points from 47.9 percent a year earlier.
![Travelers check in at Incheon International Airport on April 5. [NEWS1]](https://koreaseafood.online/data/photo/2026/04/08/d0bf787d-7b85-4daa-8244-b4147c9b4ff9.jpg)
Travelers check in at Incheon International Airport on April 5. [NEWS1]
However, experts noted that if global geopolitical and financial instability continues, it could dampen momentum across the entire travel industry, both domestic and international.
“As the peak summer season approaches, the cost burden from rising exchange rates and oil prices will dampen consumers’ willingness to travel,” Lee Hoon, the dean of the Graduate School of International Tourism at Hanyang University, said.
“While the industry is offsetting losses by promoting domestic tourism products as an alternative, if the situation persists, it could face a crisis even greater than during the Covid-19 pandemic.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]
with the Korea JoongAng Daily
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