Hopes grow among travelers for lower fuel surcharges

Passengers returning from Abu Dhabi on a plane arranged by the government reunite with their families at Incheon International Airport, March 9, after fleeing conflict in the Middle East. Korea Times photo by Shim Hyun-chul

Petru Oancea, a Romanian resident of Seoul with two children, is planning to travel with his two daughters to visit his father back home for the summer in July and August but could not find affordable tickets.

"I usually fly with LOT Polish Airlines for less than 3 million won ($2,040) for three," Petru said Wednesday. "But since the Iran crisis, the price jumped almost triple. I needed to buy the tickets soon, but could not find any affordable tickets. Fuel surcharges have gone up so much."

Asked if he is more hopeful with the announcement on Wednesday that a ceasefire might reopen the Strait of Hormuz, Petru expressed relief.

"With the news, I am getting hopeful that I might be able to travel this summer," he said. "I almost gave up the plan because the prices were crazy. I am really hoping that the ceasefire will lead to the end of war. Then, the fuel surcharge will go down also. I have not looked it up yet, but will have a look later in the day."

Oancea is not alone in his optimism. Hope for cheaper fuel surcharges is growing among travelers, as Iran's blockade on the Strait of Hormuz is expected to be lifted in line with the ceasefire.

On Wednesday, U.S. President Donald Trump said he agreed to a two-week ceasefire with Iran in exchange for the immediate reopening of the Strait of Hormuz. People who gave up on traveling are planning their trips again, raising expectations for the upcoming summer season.

Travel agencies are cautiously welcoming the news. An official from Yellow Balloon, a travel agency in Seoul, said the industry is gradually regaining hope as expectations for the end of the war become more visible.

"However, it is still a bit early," the Yellow Balloon official said. "From the perspective of the travel industry, we are hanging our hopes on this, but because the situation is so highly volatile, we think we need to watch it a little more."

Consumer sentiment had severely shrunk following the outbreak of the war on Feb. 28, when the U.S. and Israel launched a preemptive strike on Iran. As a result, tourism in the Middle East took a direct hit. Travel agencies had to hurriedly arrange alternative flights to bring home Korean nationals stranded there.

The suspension of Middle Eastern airlines also heavily affected European routes. Travel agencies usually sell many European package tours that transit through the Middle East because the airfares are usually 20 to 30 percent cheaper.

“Because Middle Eastern airlines suspended their operations, travel agencies faced significant difficulties as they had to reroute customers toward direct flights,” the Yellow Balloon official said.

While fuel surcharges for airplanes rose on April 1 and caused many travelers to cancel Middle East and Europe trips, demand has shifted toward safer destinations like China, Japan and Southeast Asia.

Despite the hurdles, the industry is looking forward to better days ahead.

“It would be unreasonable to conclude that the entire travel industry will be immediately revitalized simply because expectations are rising,” another industry official said on condition of anonymity. "But we expect travel sentiment could revive due to a potential decrease in oil prices."