Da Nang is out, Hakodate is in: Budget airlines tempt summer travelers with lesser-known 'exclusive routes'

Korea's budget airlines expand exclusive international routes to boost profitability and attract travelers, with new destinations like Hakodate, Japan, and Ishigaki Island.

Travelers use the self-check in kiosks for low-cost carriers at Incheon International Airport's Terminal 1 on June 8, 2024. [YONHAP]

Korea’s low-cost carriers are expanding their lineup of exclusive international routes — destinations unserved by other domestic airlines — in an effort to boost profitability and cater to travelers looking for alternatives to popular, and often overcrowded, tourist hubs.

Jeju Air launched a new route between Incheon and Hakodate, Japan, on Thursday, the JoongAng Ilbo reported Sunday. The carrier will operate the route twice a week — on Thursdays and Sundays — in June, and increase service to four flights per week starting in July, when the peak vacation season begins.

In the past year, the airline added three exclusive routes, including Incheon–Batam, Indonesia and the reinstated Jeju–Xi'an, China route.

Jin Air also launched a direct flight to Ishigaki Island, a small island in southern Japan, in April and now operates five exclusive routes. Budget airlines based are securing demand with routes that depart from their areas of origin.

Air Busan, headquartered in Busan, operates seven exclusive routes including Busan–Bali, Indonesia. T’way Air, based in Daegu, offers exclusive routes such as Daegu–Ulaanbaatar.

Branding less-traveled destinations

Due to the nature of the airline industry, the more airlines that operate on a particular route, the more intense the price competition. Exclusive routes, however, face less pressure to offer discounts or promotions and typically sell more seats, so they tend to be more profitable.

“The Hakodate route was 97.4 percent full on its first flight,” a Jeju Air spokesperson said.

A view of Ishigaki Island, a destination to which Jin Air launched an exclusive route to last year [SCREEN CAPTURE]

A total of 88,926,621 international travelers flew in and out of Korea last year — up 30.2 percent from the year before, according to the Ministry of Land, Infrastructure and Transport’s Airportal.

With Korean travelers flocking to well-known destinations, places like Da Nang have been jokingly referred to as “Da Nang, Gyeonggi.” This trend is driving low-cost carriers to explore lesser-known destinations to attract new travelers.

Most exclusive routes target small to midsize cities near major tourist destinations, which previously required a transfer. Hakodate is near Sapporo, and Ishigaki Island is close to Okinawa, Japan, though both are relatively unfamiliar to Korean travelers.

“We need to highlight the uniqueness of uncommon travel destinations and incorporate influencer marketing,” said a representative for a budget airline. “A ‘just try this new route’ approach won’t cut it — marketing that adds unique local elements and says 'go while nobody else knows about it,' is necessary.”

The night view of Hakodate, Japan [MODE TOUR]

At least six months of planning required

Each budget airline's route development team considers factors such as market demand, travel infrastructure and support or incentives from local governments when evaluating potential exclusive routes. It takes at least six months to a year to plan and launch a new route.

While a well-established exclusive route can become highly lucrative, routes are sometimes discontinued due to new market entrants or unforeseen events like the Covid-19 pandemic.

Jin Air once offered exclusive flights to Honolulu, Hawaii, and Cairns but discontinued them due to cost issues. Eastar Jet operated an exclusive route to Miyazaki, Japan, before halting service during the pandemic.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY LEE SU-JEONG [lim.jeongwon@joongang.co.kr]