"No Refund Policy... Managed to Cancel China Trip Only After Calling Ministry of Foreign Affairs"

Due to the spread of the novel coronavirus infection (Wuhan pneumonia), the check-in waiting area for Chinese airlines at Incheon International Airport appeared deserted on the 28th of last month.
Yeongjongdo - Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Heung-soon] Noh Gyu-hwan (63, pseudonym), who lives in Seoul, booked a group tour package through a travel agency specializing in group tours about a month ago to visit Zhangjiajie, China, with his family. He purchased a special deal that included airfare, accommodation, and sightseeing, and was scheduled to depart around mid-month. However, as the novel coronavirus infection (Wuhan pneumonia) spread uncontrollably, he decided to cancel and inquired with the travel agency. The response he received was, "Refunds are not possible except in cases of natural disasters designated by the government as travel-restricted areas." After a dispute, Mr. Noh filed a complaint with the Ministry of Foreign Affairs. A few days later, he was contacted by the travel agency and informed that his reservation would be canceled.

According to the travel industry on the 3rd, due to the impact of the novel coronavirus, many Korean nationals who had planned trips to China are canceling their existing reservations one after another. However, as in Mr. Noh’s case, conflicts between travel agencies and customers continue over issues such as penalty payments. In particular, small and medium-sized companies that sell China travel packages at low prices are known to be reluctant to handle refund issues, citing related regulations.

Some large travel agencies specializing in outbound travel (overseas travel by domestic residents) are canceling China travel packages booked through February without imposing penalties, considering national safety even at the cost of losses. On the other hand, small and medium-sized companies with limited resources face significant losses if they accommodate all customer complaints, and if they refuse, consumer protests and criticism continue, leaving them in a difficult position.

There are also criticisms that government announcements are causing confusion. On the 2nd, the Central Disaster and Safety Countermeasures Headquarters for the novel coronavirus infection adjusted the travel advisory for all of China from the "caution stage" to "recommendation to withdraw," and initially planned to ban visits to China for tourism purposes but later changed to reviewing all measures.

Because of this, some speculate, "Is the government watching China cautiously due to concerns about diplomatic friction?" A travel industry official said, "Even if measures such as banning travel to China are implemented, there is no separate clause that immediately exempts penalties, but there is a justification to coordinate commission charges in connection with airlines and accommodation industries." However, he also predicted, "Considering China’s objections, it would be difficult for the government to proactively impose a travel ban at the national level."