The travel industry, which has been hit hard by the COVID-19 pandemic, continues to seek new avenues for growth. Whilst the hotel sector has been actively embracing live shopping since last year, some travel agencies are now turning their attention to crowdfunding as a sales channel, with funding campaigns being launched one after another.

Crowdfunding operates on a structure whereby consumers participate in funding for a product they wish to purchase; once the target number of participants or the target amount is reached, they make the final payment and receive the product. In South Korea, Wadiz, Tumblbug and Crowdy are the leading online platforms, with the majority of travel-related crowdfunding this year taking place on Wadiz.

Interpark Tour launched an airline ticket crowdfunding campaign on Wadiz between March and June this year. The main products were flights to Taiwan, Guam, Da Nang and Saipan, valid for use during next month’s Chuseok and the 2022 Lunar New Year holidays. Among the various attempts, the Chuseok flights to Taiwan and Guam were successful, achieving 138% (39,674,000 won) and 112% (55,142,000 won) of their respective target amounts. It appears that benefits such as prices similar to pre-COVID levels and the option to substitute with domestic accommodation should overseas travel be cancelled were key factors in their success.

Domestic travel packages from guide cooperatives and travel agencies also frequently caught the eye. In particular, Guide Coop, a collective of tourist interpreters and guides, launched a crowdfunding campaign for its ‘Santiago in Yeoncheon’ package, raising 2,229,810 won – more than double its target of 1 million won. According to the crowdfunding page, Guide Coop plans to drive change in the travel industry by combining Wadiz’s marketing power with its own content, and to use the funds raised for product development. Additionally, ‘Dreaming Train Travel’—a project sponsored by the Korea Tourism Organisation—unveiled its 2-3 day packages covering Namhae, North Gyeongsang and Gangwon provinces. Furthermore, as of 25 August, funding campaigns for upcycling tours and trips to Ulleungdo are either underway or scheduled to begin.

Recently, overseas travel funding campaigns are also set to launch. Yanatrip, a specialist in the Middle East, will begin fundraising on 31 August for a 4-night, 7-day independent tour of Dubai. This move effectively spearheads the resumption of travel to Dubai, timed to coincide with the 2020 Dubai Expo, which opens on 1 October. Currently (as of 1 August), fully vaccinated South Koreans returning from the United Arab Emirates (UAE) are not exempt from the 14-day self-isolation requirement. However, Yanatrip plans to address this by guaranteeing departure by 30 September next year for consumers who book during the funding period. Yanatrip stated, “We planned this project as the UAE’s full vaccination rate has reached 80 per cent and vaccination rates in South Korea continue to rise,” adding, “New tourism attractions have been added to Dubai during the pandemic, including the Dubai Expo.”