Travel stocks suffer slump despite upcoming vacation season
Incheon International Airport / YonhapBy Jhoo Dong-chanShare prices of the nation's travel agencies are suffering an unanticipated slump despite the upcoming vacation season next month.According to the Korea Exchange (KRX), the share price of Hana Tour closed at 55,400 won ($47.09) on the Wednesday session. The figure was up 200 won, or 0.36 percent, from the previous session, but was down 41 percent from its yearly high of 78,000 won on March 19.Another travel agency powerhouse Mode Tour also closed at 20,950 won on the day. The price dropped 16.86 percent compared to its March 19 price.“This is very unusual,” said a travel agency worker who asked not to be named. “Travel agencies enjoy high sales right before vacation season because travelers make reservations a month or two before their trips. I understand both firms' reservation rates are very disappointing this month.”Despite both firms' disappointing sales in May, market observers remain optimistic about their future stock prices.“Mode Tour's operating profit slid 4 percent year-on-year to 9.1 bil
Jun 20, 2019By Jhoo Dong-chan