"Be Sure to Check Local Additional Payments on 'Overseas Accommodation Booking Platforms'"

Seoul Electronic Commerce Center Investigates Price Display on 9 Major Overseas Accommodation and Shared Accommodation Booking Platforms
Many Cases of On-site Additional Facility Usage Fees of $20-$80 per Night Requested

[Asia Economy Reporter Lim Cheol-young] As more countries have recently eased COVID-19 quarantine regulations, the number of consumers using overseas accommodation reservation platforms (OTA) and shared accommodation platforms is increasing. However, there have been repeated cases where consumers experience inconvenience and damage due to insufficient guidance on additional local payments required, such as parking fees and facility usage fees.

On the 9th, the Seoul Electronic Commerce Center announced that it conducted a survey on price and payment guidance targeting a total of nine overseas accommodation reservation platforms frequently used by Koreans, including Agoda, Booking.com, Hotels.com, Expedia, Airbnb, Trip.com, Hana Tour, Modu Tour, and Tripvitoz.

The survey results showed that many platforms require additional local payments for ‘Amenity Fees’ or ‘Resort Fees’ under the name of facility usage fees such as swimming pools and Wi-Fi, ranging from as low as 20 USD to as high as 80 USD per night. Even on shared accommodation platforms (Airbnb), there were cases where facility usage fees were charged as local payment costs.

In response, Seoul City advised that to minimize such inconveniences and additional costs, it is a good method to carefully compare overseas accommodation reservation platforms with the official websites of hotels and resorts when booking accommodations. Seoul City explained that when booking directly through the accommodation provider’s website, consumers often save the average 20% commission paid by the provider to intermediary platforms, and in many cases, facility usage fees are waived for consumers.

Also, most overseas accommodation platforms introduce accommodations in Korean and allow reservations in Korean, and in many cases, the payment amount is also made in Korean won. However, for platforms operated by overseas businesses, a double currency conversion fee of 3-8% may occur when paying in Korean won overseas (DCC). Seoul City advised that for platforms operated by overseas businesses, it is better to pay in the local currency of the country or in US dollars, and when booking through the official website of the accommodation provider, payment is automatically made in dollars or local currency, reducing the fee burden.

Ryu Dae-chang, Seoul City’s Fair Economy Officer, said, “When booking overseas accommodations, consumers need to be cautious as there may be hidden costs that can occur on-site in addition to online payments, such as facility usage fees and double currency conversion fees.” He added, “Seoul City will continue to provide various necessary information to consumers about what to be aware of when making reservations to help prevent damages related to electronic commerce.”