The burden of summer vacation travel costs is growing. As airfares and the exchange rate rise together, a significant number of overseas travelers are turning back to domestic destinations.
According to consumer price trends released by Statistics Korea on Sunday, international airfares rose 28.2% last month from a year earlier, while overseas group travel costs increased 24.3%. The figures moderated slightly from May's growth rates of 33.0% for international airfares and 26.3% for overseas group travel, but they remain high.
The exchange rate is another factor driving up overseas travel expenses. The average won-dollar exchange rate in the second quarter was 1,501.6 won, entering the 1,500-won range for the first time since the first quarter of 1998 (1,596.8 won) during the foreign exchange crisis. When the exchange rate rises, the won-converted amounts for local accommodation, food, and shopping expenses increase alongside airfare prices. With the exchange rate increase added to airfare hikes, the actual cost burden felt by travelers may be greater than the statistical figures suggest.
Amid this situation, Park, an office worker, recently canceled a trip to Da Nang, Vietnam, that he had planned with his spouse. He did so after receiving a quote approaching 2 million won for two people while checking airfare and accommodation costs for a four-day, three-night itinerary on a ticket booking site.
"Airfare prices had risen noticeably compared to when I visited on the same itinerary last year," Park said. "Adding local transportation and food costs, the burden was far greater than expected." He is now searching again for domestic travel destinations accessible by car, such as Gangneung in Gangwon Province and Busan.
A similar trend is confirmed in a survey by research firm PMI. In a "2026 Summer Vacation Survey" of 1,000 adult men and women aged 20 to 59 nationwide, 45.7% of respondents said this summer's vacation costs were "burdensome." Those who answered "average" accounted for 41.3%, while 13.0% said the costs were "not burdensome."
The most common reason cited for the burden was peak-season accommodation rate increases (53.4%), followed by economic anxiety (19.7%), surging airfare prices due to fuel surcharge increases (16.2%), and the rising won-dollar exchange rate (9.4%).
Domestic travel, however, is not always a cheaper alternative. According to Trip.com's hotel data by city, the average accommodation rate in Sokcho, Gangwon Province, jumped from 243,000 won last month to 297,000 won this month. Busan also rose from 222,000 won to 243,000 won over the same period.
Nevertheless, with no airfare and exchange rate variables involved, travelers are increasingly viewing domestic travel as a relatively predictable option.
