"International Flight Ticket Cancellation Fees Higher at Online Travel Agencies than Airlines"

OTA and Airline Purchase Condition Comparison Survey
OTA Also More Expensive for Ancillary Product Prices

Cancellation fees for international airline tickets purchased through online travel agencies (OTAs) were found to be higher than those charged by airlines. Additionally, the prices of 'add-on products' such as extra checked baggage were also found to be more expensive on OTAs compared to airlines.

The Korea Consumer Agency announced on the 17th that a comparative investigation of purchase prices, cancellation fees, and add-on products for international airline tickets sold by OTAs versus airline purchase conditions confirmed these findings. The OTAs surveyed were the top 10 companies by consultation volume last year, including ▲Gotogate ▲MyTrip ▲Agoda ▲eDreams ▲Expedia ▲Kiwi.com ▲Trip.com ▲WhyPayMore ▲Interpark ▲Hanatour.

According to the Consumer Agency, among the 11,554 international transaction consumer consultations related to airline tickets received from 2021 to last year, 7,143 consultations (61.8%) were related to OTAs. When broken down by type, 'delays or refusals in cancellation, changes, and refunds' accounted for 4,005 cases, more than half (56.1%), followed by 'excessive penalties and fees' with 1,743 cases (24.3%). Most consultations were related to contract cancellations and penalties.

In a survey of 600 consumers who had booked airline tickets online within the past year, 179 respondents (29.8%) identified domestic OTAs as the place where they expected the lowest ticket prices. This was followed by international OTAs at 27.5% (165 respondents) and airline websites at 14.8% (89 respondents). However, a comparative investigation of round-trip tickets on eight routes, conducted approximately 10 times each over about one month across 10 OTAs, totaling 800 comparisons, revealed that OTA ticket prices were higher than airline prices in 571 cases (71.4%). Comparing average prices by purchase channel, five routes had higher prices on international OTAs, two routes on domestic OTAs, and one route on airlines.

Cancellation fees were also higher on OTAs than on airlines. This was confirmed to be because OTA cancellation fees include not only the 'airline-imposed cancellation fee' but also an 'OTA-specific cancellation fee.' In the comparative investigation (800 cases), OTA cancellation fees were equal to or cheaper than airline cancellation fees in only 81 cases (10.3%).

There was a significant difference in the provision of cancellation fee information between domestic and international OTAs. Domestic OTAs provided appropriate cancellation fee information, but some international OTAs either did not provide or provided unclear cancellation fee information. In particular, among international OTAs, eDreams and Kiwi.com mostly did not provide cancellation fee information, while Expedia provided different cancellation fee information at various payment stages.

Prices for add-on products (extra checked baggage, advance seat selection) were also higher on OTAs than on airlines. Additionally, among the surveyed routes, domestic airlines (four routes) allowed cancellation and refunds for add-on product reservations, whereas international airlines (four routes) did not.

Based on these findings, the Consumer Agency recommended that the surveyed businesses provide clear information regarding cancellation policies for airline tickets and add-on products and improve guidance on the final payment amount to prevent consumer misunderstandings. The Consumer Agency urged, "When purchasing international airline tickets, consumers should visit both airline and OTA websites to compare not only prices but also conditions such as cancellation fees. Even if tickets are purchased through OTAs, most airlines allow the purchase of add-on products, so consumers should buy from the channel that offers the most favorable conditions, including price."