In February, they said there would be a discount promotion and asked for a 20% discount. When we mentioned that we find it difficult since we would bear 100% of the costs, they asked if we could reduce it to just 5 euros (about 10%). Instead, they also informed us of an alternative option that If I raise the price by 10% in Minda, it would ultimately result in applying a 20% discounted price at "MyRealTrip."
On the 12th, Kim Yoon-hee, the representative of the Korean guesthouse platform "Minda," expressed her frustration after receiving such a tip (refer to the image below) from a guesthouse in Europe.
Currently, there are six platforms handling Korean guesthouses. "Minda" which primarily specializes in that product, and "MyRealTrip," which positions itself as a travel super app, effectively dominate the market. Representative Kim sees this as "MyRealTrip" launching an aggressive campaign to effectively put "Minda" out of business.
"MyRealTrip" stated that during a two-week limited event, they reached out to about 850 Korean guesthouses to ask about their willingness to participate. Out of this, around 100 companies, less than 10%, expressed their willingness to participate, which they explained was part of a typical promotion.
Both "Minda" and "MyRealTrip" are also engaged in legal battles over the illegal appropriation of Korean guesthouse information. The core of the issue is that "MyRealTrip," as a latecomer in this market, illegally appropriated the information that "Minda" accumulated over 20 years. "Minda" has filed a lawsuit for damages, demanding 1 billion won.
"MyRealTrip" acknowledges moral responsibility but is reportedly at odds over the amount of damages to be compensated. They also stated that since the lawsuit is ongoing, they will officially clarify their position based on the court's decision.
According to industry sources on the 16th, the first-instance ruling in the civil lawsuit that "Minda" filed against "MyRealTrip" is expected to come out in April to May. The related hearing date is scheduled for March 14.
The legal conflict between both parties became publicly known when "Minda" formally announced it through a press conference in January. From May to August 2022, an employee of "MyRealTrip" is said to have obtained Korean guesthouse information through 141 false reservations on the "Minda" platform.
According to "Minda," the database (DB) that "MyRealTrip" acquired through these reservations and cancellations amounts to 73 entries, with an estimated value of about 24.5 billion won based on transaction value and about 2.4 billion won based on commission revenue.
CEO Kim stated, "Many cases have been confirmed that MyRealTrip took information that was not disclosed to the outside, such as phone numbers, e-mails, and Kakaotalk IDs, from vouchers provided to users who made reservations, and then contacted the guest house and posted it on the platform."
She added, "Even combining all the Korean guesthouses around the world, they don't add up to 1000, and with the prolonged COVID-19 pandemic at that time, many places went out of business, resulting in a significant shortage of supply. In 2022, when the theft incident occurred, the skies suddenly opened, and transactions for relatively inexpensive Korean guesthouses surged with a "J-curve," leading to significant damages due to illegal activities."
Aside from this dispute, "Minda" asserts that since "MyRealTrip" launched aggressive marketing last year, the number of transactions has drastically decreased (refer to the graph above), threatening their survival.
"Minda" won a victory in the first instance of the criminal case. Last October, the Seoul Central District Court ruled that the actions committed by Mr. A, a former employee of "MyRealTrip," constituted obstruction of business through fraud and imposed a fine of 5 million won. Mr. A has appealed the decision.
"Minda" has also filed a civil lawsuit against Mr. A and "MyRealTrip" for violating unfair competition prevention laws. A ruling is expected as early as April.
"MyRealTrip" is awaiting the court's judgment on whether obtaining Korean guesthouse information was illegal, whether "Minda" actually incurred damages as claimed, and what the appropriate amount of compensation should be if damages did occur.
Lee Dong-geon, the representative of "MyRealTrip," stated, "This is not merely a case of 'covering up' an employee's misbehavior, and we will officially announce our position depending on the outcome of the civil lawsuit."
However, some voices in the startup community are calling for a responsible apology and measures to prevent recurrence.
Lee Gi-dae, the center head of the Startup Alliance, said, "For a sizable startup like "MyRealTrip" to collect databases by booking and then canceling reservations without fair competition is indeed condemnable. It seems necessary to promise to prevent recurrence, to apologize, and to compensate for the damages."