KOREA MARKET OVERVIEW PRESENTED BYGSO - KOREA

JANUARY 2015

CONTENTS

• Team Introduction • Korea Market Overview.• On untapped potential from Korea• Requirement from Sales office/retails • Travellers requirement from Hotels.• Supports from Hotel

GSO – Korea: Discover The World KOREA

About Discover Korea & Our Strength

• 32 years of global travel sales & marketing expertise. – Discover Korea since 2010.

• An energy and passion to deliver inspiring work

• Strong retail and corporate trade network with key decision makers of the industry, including travel agents, tour operators and airlines.

• Expertise in Activities : Regular sales blitzes, travel trade seminars, value added promotions, participation in trade and consumer trade shows, telemarketing, trade press exposure including articles, press releases and direct mail campaigns using e-newsletters, flyers and promotional materials.

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Team Introduction

SS Paik, DirectorS.S. Paik is director of Discover’s office in Seoul, Korea. He is also a present of Sharp Aviation K and having served since 1982.

Office Address: # 1002 Seoul Center Bldg., 91-1, Sogong-dong, Jung-gu Seoul, 100-070 Korea

Location within walking distance of key agents and airline partners

EG Park, General ManagerPR, Sales & Marketing Manager at Discover since 2010.Experience Caesars Entertainment(2010~) Steigenberger Hotel Group(2011~) Expedia TAAP Hyatt Corporation(2010~2012)

KOREA Market Overview

KOREA Market Overview - Environment

Market Population(2014) : 50M

Outbound Market size (2014) : 14.8M

Ranks 15th in the world by nominal GDP

Seoul

Busan

Int’l Airport : 8 Domestic Airport : 7

2014 GDP growth rate : 3.7%

Private consumption growth : 3.7%

No of IATA Agency : over 700

• Over 90% of households having internet access on a broadband basis.

• The rate of smart phone penetration for Koreans in 2014 is estimated to be 81%

• 66% of Korean leisure travelers generally booking trips online including smart phone.

• 80% of Korean leisure travelers use SNS during their travel.

• Kakao Talk (152M worldwide as of August 2014)No. 1 mobile messenger service

• Kakao StorySub application of Kakao Talk, providing similar service to Facebook

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KOREA Market Overview – SNS Trend

Korean Outbound travel to Singapore

Korean Outbound travel to Malaysia

KOREA Market Overview – Outbound

Country Visitors Share YOY

1 China 3,969,000 26.7% -2.5%

2 Japan 2,456,165 16.5% 20.2%

3 Thailand 1,359,924 9.2% 8.7%

4 USA 1,308,957 8.8% 12.5%

5 Philippines 1,165,789 7.9% 13.1%

6 Hong Kong 1,083,543 7.3% 0.5%

7 Vietnam 748,727 5.0% 6.8%

8 Macau 474,269 3.2% 6.6%

9 Singapore 471,767 3.2% 6.0%

10 Cambodia 435,009 3.0% 5.7%

Top 10 13,474,150 90.8% 6.4%

All out bounds 14,846,485 100% 8.1%

2013 Top 10 destinations for Korean

(Excluding European countries)

KOREA Market Overview – Travel to Singapore

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Visitor Arrivals to Singapore, January to June 2014

Korean visitor arrival growth had risen on the back of the additional travel route by Scoot between Seoul and Singapore

(Source : Singapore tourism board)

KOREA Market Overview – Travelers to Singapore (2013)

Gender Age GroupLength of Stay(Days)

(Source : Singapore tourism board)

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Rank Travel Agency Remark Rank Travel Agency Remark

1 HANA TOUR Wholesaler 16 VERY GOOD TOUR

2 INTERPARK OTA 17 GLOBAL PASSAGE CWT

3 MODE TOUR Wholesaler 18 NAEIL TOUR FIT

4 ONLINE OTA 19 WEB TOUR OTA

5 TOP TRAVEL 20 LOTTE JTB

6 REDCAP Corporate ㅣ LG 21 TONGSUNG SAMWOO

7 SUNLAND 22 TOUR BAKSA FIT

8 TIDE SQUARE 23 LOTTE TOUR

9 YELLO BALLOON 24 LOTTE CARD AMEX

10 SM C&C HRG 25 JAU TOUR

11 SEJOONG Corporate ㅣ Samsung 26 HYUNDAI DREAM

12 TOUR 2000 27 SMILE GLOBAL BCD

13 CLUB ROTHEM OTA 28 M& SERVICE Corporate ㅣ SK

14 HANJIN TRAVEL Wholesaler 29 MYUNGSAN

15 V.I.P TRAVEL 30 KB KOOKMIN

IATA : approx. 700 Non IATA : approx. 7,000

KOREA Market Overview – Air Tickets to Singapore (2013)

On untapped potential from Korea

On untapped potential from Korea

FIT is growing rapidly – JV promotion with OTAs Family Group – Offer special benefit (ex. child free)

Competitive with Thailand and Vietnam ( Nha Traing is being competitive as a new developed destination) Approach MICE with Special Benefit offer Offering special benefit for group organizer & travel agent to motivate /reward

Travellers requirement from Hotels.

Travelers requirement from hotels

Korean expect/prefer various breakfast buffet items including Asian cuisine

FIT : Guarantee connecting room(or next room) in case of multiple rooms booked

MICE: Reply with Quotation & Availability within 24 hours.

Corporate : Early-check/Late check-out with surcharge

Airport Pick up/Drop off Service

Information in Korean Language

Support from Hotels

Guest Feedback(in Korean) to analyze

Support 1 night complementary stay with site inspection for qualified travel agents

Provide information for E-newsletter to trade