The Korea Consumer Agency noted on the 27th that due to the management difficulties of travel agencies, there are increasing cases where consumers fail to receive timely payments for accumulated travel contracts' cancellations and maturity refunds, or experience delays and non-fulfillment of refunds when cancelling package tour contracts, requiring consumers to exercise special caution.

According to the consumer agency, the number of travel-related damage relief applications submitted from 2020 to last year reached 3,992 cases. This increased particularly after the normalization of travel demand following the COVID-19 pandemic. Of these, damages related to international travel accounted for 85.6% (3,356 cases) of the total.

A travel agency in Jongno-gu, Seoul. /Courtesy of News1

By type, damages related to contracts, such as excessive penalties charged during cancellation processes and failure or delays in refunds, made up 66.0% (2,587 cases) of the total. Cases where the quality of travel was impacted due to improper fulfillment of contracts, including arbitrary schedule changes and complaints about local guides or accommodations, followed at 25.4% (996 cases).

Additionally, an analysis of applications for damage relief related to contracts revealed that there were frequent cases of individuals not receiving refunds according to standards after their accumulated travel contracts matured or were terminated early. Many cases also involved failure to receive the agreed refund amount when cancelling package tour contracts. The consumer agency explained that these issues are presumed to stem from the lack of liquidity in travel agencies that have not recovered from accumulated deficits after COVID-19.

Quality-related consumer damages occurring during travel have also increased. There were many consumer complaints regarding guides' lack of diligence, forced shopping, arbitrary schedule changes due to travel agency circumstances, and accommodation quality issues.

In cases of disputes over travel quality, subjective opinions from the parties involved lead to significant differences in positions, and proving damages is difficult, making it hard to receive compensation. In this regard, the Korea Consumer Agency has recommended that travel agencies provide accurate and specific information to consumers at the time of contract signing and check consumer complaints during travel, and take action on-site.

To establish fundamental solutions for various travel-related damages, the consumer agency formed a 'Travel Consumer Council' last year with the Korea Travel Agency Association and five businesses. This council aims to review the current status of major damage types, address issues related to unfair travel product sales practices, and share improvements across the travel industry. The consumer agency plans to continue analyzing problems and developing solutions in collaboration.

The consumer agency recommends that to prevent travel-related damages, consumers should use reliable companies through travel reviews and check penalty regulations before purchasing package products. It also emphasizes using credit cards for installment payments whenever possible and exercising the right to refuse remaining installment payments if contracts are not fulfilled.

Moreover, if damages occur during travel, it advises consumers to sufficiently secure evidence such as videos, photos, and recorded materials to prepare for disputes.

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