VIA Shinsegae, a premium travel platform service created by Shinsegae Department Store, is continuing to expand.
On the 24th, according to the retail industry, Shinsegae Department Store signed a partnership with Belmond, the luxury hotel travel group of LVMH Group known for Louis Vuitton, and joined the Bellini Club. The Bellini Club is a network made up of a small number of premium travel agencies. There are fewer than 100 member companies worldwide.
Becoming a travel agency affiliated with the Bellini Club can bring services such as special protocol or differentiated amenities, but it also makes hotel bookings themselves easier. It means they can reliably secure ultraluxury accommodations. Because of this, travel agencies that have long offered ultra-high-priced travel packages regard this very networking as a key competitive edge. It is also why they did not pay much attention when VIA Shinsegae first entered the travel market. A travel industry official said, "VIA Shinsegae is acquiring know-how in operating ultra-high-priced travel programs faster than expected."
There is also an assessment that Shinsegae Department Store is advantageous in many ways for attracting customers to ultra-high-priced travel programs. More of Shinsegae Department Store's VIP consumers are turning to VIA Shinsegae. Using travel programs counts fully toward mileage, helping maintain VIP status, and prices are easy to grasp. Many small luxury tour operators provide prices separately once inquiries begin, but in the case of VIA Shinsegae, price ranges are posted online.
Reviews are also favorable for service that immediately responds when consumer complaints arise. A VIA Shinsegae customer who requested anonymity said, "During the trip, I wasn't satisfied with the lodging, and when I mentioned it, they found another place locally, and they tried to compensate in various ways during the trip in case I might have felt upset," adding, "Later I felt almost sorry for having complained, and because of that experience, I came to use them often."
Hanatour and Modetour Network are also closely watching VIA Shinsegae's direction. Hanatour and Modetour Network have so far focused on offering travel packages at mainstream price points. But recently they have been removing shopping and optional tours and upgrading the packages themselves to raise unit prices. At Hanatour, the Hana 2.0 premium package is representative.
In this process, the prices of Hanatour and Modetour Network's travel programs and VIA Shinsegae's travel programs are showing signs of converging. For example, at Hanatour, a 7-night, 8-day trip to Italy using the Hana 2.0 premium package (business-class air) is priced at about 15 million won, and VIA Shinsegae's travel programs can be booked at a similar price. VIA Shinsegae also provides a limousine service from home to Incheon Airport for parts of Seoul and Gyeonggi, and considering this, some say it is even more competitive.
VIA Shinsegae plans to further strengthen its travel programs going forward. Park Sung-gil, Head of Team of VIA Shinsegae's Travel Business Team, said, "Consumer response seems clear for trips with learning, trips with distinct tastes, and trips with a clear concept," adding, "Going forward, VIA Shinsegae will delve deeper into hotels, spaces, and the level of curation."
What meaning will Shinsegae Department Store's VIA Shinsegae have in the travel industry, and what changes will it bring? What is certain is that the weight of how travel agencies view VIA Shinsegae has changed greatly from the beginning.