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[Alpha Biz= Reporter Kim Sangjin] Korea Investment & Securities has evaluated that Hana Tour is ready for a stock price rebound, though it did not provide a specific investment rating or target price.
On the 27th, the firm noted, "Monthly outbound traveler numbers have recovered to 74% of pre-pandemic levels, driven by increased overseas travel demand following the reopening. Concerns that current demand will peak as pent-up spending subsides are overblown."
The report also highlighted a shift in perception toward overseas travel, stating, "With rising national income, overseas travel is increasingly viewed as a hobby rather than a luxury. Coupled with structural changes in demand, we expect a turnaround in Hana Tour's performance, aided by improvements in its core business."
In the second quarter, Hana Tour's average selling price (ASP) rose 56% compared to the pre-pandemic five-year average, reaching KRW 1.09 million. Interest in higher-quality travel has surged, with mid-to-high-end package sales jumping from 8% of total sales pre-pandemic to 57% in 2023.
Korea Investment & Securities added, "A premium strategy will strengthen growth potential, as increased sales of mid-to-high-end packages drive price increases and contribute to profit growth in the long term."
The firm also expects Hana Tour to benefit from the rise of online travel agencies (OTAs), as IT technology integrates with the travel industry and more bookings are made via mobile platforms.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
