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Domestic travelers line up for departure at Gimpo International Airport, Oct. 8, the first day of a three-day holiday weekend to mark Hangeul Day that fell Oct. 9. Travelers are anticipated to recommence traveling abroad, as the country prepares for a “new normal” under the government’s “Living with COVID-19” policy. Yonhap


By Yi Whan-woo

The country’s two leading startups in the online travel market ― Yanjola and Good Choice ― are capitalizing on their strengths as platform operators to scale up their businesses before the government begins its “Living with COVID-19” policy.

The move is based on the confidence built upon the success of platform operators in other industries, which grew faster to outrun conventional market players due to people’s greater reliance on digital technology amid the coronavirus pandemic.

In the cases of Yanolja and Good Choice, the government’s push for “Living with COVID-19,” the policy initiative which will be started Nov. 9, will provide growth opportunities for them amid an increased vaccination rate. The administration’s policy will result in eased travel restrictions, both at home and abroad, as travelers continue to show a preference for making bookings and other travel preparations online.
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A 2021 advertisement for Yanjola / Korea Times file
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A 2020 coupon marketing campaign for accommodation nationwide was co-organized by Good Choice, the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization in a bid to revitalize the pandemic-hit economy. Korea Times file


According to local investment banking sources, Tuesday, Yanjola partnered with Hana Tour, the country’s No. 1 travel agency, under which the tour agency will sell its overseas travel package exclusively through the online booking operator.

This is the first time Yanolja will set foot in the overseas travel package business that mainly involves group tours, the sources said. Regarding the specifics of the partnership, both Yanolja and Hana Tour were unavailable for comment.

Being the country’s largest booking app, the company only has operated programs for “fully independent travelers,” referring to individuals who design their own itineraries and do not travel on group tours or according to any schedule imposed by others.

“The partnership between Yanjola and Hana Tour would have been unthinkable if there was no pandemic or rise in platform operators,” one source said. “Yanolja plans to take the initiative across the entire travel industry in the post-pandemic world.”

Yanolja reported 288.8 billion won ($240.7 million) in annual sales last year, a more than a five-fold increase from 2017. However, Hana Tour saw its sales shrink by almost a seventh from 2019 to 1.09 billion won in 2020.

Based on its experience in terms of managing accommodation systems, Yanolja is also working with hotels and other accommodation providers to adopt its property management system, according to the sources. The system has been developed to manage day-to-day accommodation operations such as reservations, front desk, housekeeping, maintenance, invoicing, analytics and reporting.

Good Choice, the country’s second-largest booking app, has acquired a 20 percent stake in Online Tour, one of the five largest travel agencies here.

Good Choice additionally bought call options in Online Tour, which puts the maximum estimated investment at around 50 billion won.

“The acquisition is expected to be mutually beneficial,” a Good Choice executive said, noting his company has solely focused on the domestic travel market while Online Tour is specialized in overseas travel, including flights, accommodation and package tours.


‘Living with COVID-19’ to boost travel platform operators
Source: Buhay Kapa PH