"Last Chance, Buy Now" Hidden 'Special Terms' in Home Shopping Vietnam Trip [Hutdari Economy]

(47) When Purchasing Travel Products via Home Shopping, You Must Understand the 'Special Terms and Conditions'

Editor's NoteMany people thought they were engaging in smart economic activities to get something better, but it often turned out to be a misstep. When consumers are deceived by corporate marketing or blinded by momentary gains and make wrong decisions, they end up suffering the most. We aim to examine economic activities where people misjudge everyday situations and make mistakes, or "missteps."

Purchasing travel vouchers through TV home shopping can seem reasonable because you can enjoy package deals at prices cheaper than regular travel agencies. However, most special-priced products advertised as the "final price" apply "special terms and conditions" rather than the "standard terms and conditions," which may impose restrictions when changing schedules or hotels. Additionally, depending on the options selected, unexpected additional costs may arise, so consumers need to be cautious.

According to a recent survey by the Korea Consumer Agency on the terms and conditions of 426 overseas travel products sold by eight domestic travel agencies and nine home shopping companies, only 120 (28.2%) used the "Standard Terms and Conditions for Overseas Travel." The remaining 306 (71.8%) applied only special terms or a mix of special and standard terms. Special terms take precedence over standard terms at the time of contract. Even if consumers cancel their trips due to unavoidable circumstances, travel agencies can impose higher cancellation fees based on special terms than those stipulated in the standard terms or consumer dispute resolution standards. The Consumer Agency stated, "Travel agencies present special terms for each package, but from the consumer's perspective, it is better to proceed with contracts under the standard terms."

We examined the contract details of a Vietnam package travel voucher sold by GS SHOP. According to the cancellation policy, "At the airline's request, even if it is 30 days before the trip, the airline ticket may be issued in advance (with customer consent, converted to special terms under Article 6 of the travel terms)." Once the ticket is issued, the standard terms automatically change to special terms. Consequently, the compensation standards change, and cancellation fees also change. If canceled after ticket issuance, a 100,000 KRW airline cancellation fee (due to ticket issuance) is added to the "standard terms cancellation fee" specified by date in the contract. The same rule applies even if the trip is canceled due to the travel agency's fault (such as natural disasters making flights impossible). However, if the number of participants falls short, the travel expenses (full product price) are refunded.

We also reviewed the cancellation fee policy for an Australia package travel voucher sold at Lotte Mall, which applies special terms. This package requires partial prepayment of airline fees, and the prepayment is non-refundable from the moment the reservation deposit is made. Additionally, if canceled, a 200,000 KRW fee is added to the refund amount (which varies depending on the cancellation timing).

A travel agency official explained that the high cancellation fees are because "changing the customer's travel date means canceling the existing contract and making a new one from the agency's perspective." He added, "If you purchase a package less than 30 days before departure in a hurry, changes may be more difficult, so it is better to buy products with ample time left at a cheaper price." He also advised, "Rather than impulsively buying because of a special price, consumers should consider various factors before deciding."

It is also advisable to check the "exclusions" included in the contract. Although purchasing a package may lead one to believe there will be no additional costs, amounts such as tips for drivers and guides (paid per person) and recommended optional tours must be prepared separately. Also, if the exchange rate increases by more than 2% or airline fees rise by more than 5% compared to the contract time, additional payments are required.

Since TV home shopping usage is high among elderly people who find it difficult to purchase via mobile phones, the number of damage relief applications from elderly victims has increased. According to the Korea Consumer Agency, from 2021 to June this year, there have been 370 damage relief applications related to overseas travel from elderly consumers (aged 60 and above).

Looking at the number of damage relief applications by year, there were 28 in 2021, 42 in 2022, and 181 last year. In the first half of this year alone, 119 applications were received. The most common reason for damage relief applications was "contract cancellation before departure and dissatisfaction with penalties," accounting for 63.8% (236 cases). This was followed by "contract non-fulfillment" at 12.7% (47 cases) and "quality/service dissatisfaction" at 8.9% (33 cases). Among the contract cancellations before departure and penalty complaints, cancellations due to "health reasons" such as injury or illness accounted for 43.6% (103 cases), and "personal reasons of the consumer" accounted for 26.7% (63 cases).

Professor Eunhee Lee of Inha University's Department of Consumer Studies advised, "It is important to clearly indicate how the applied special terms differ from the standard terms so that consumers can recognize the differences." She added, "Consultants should explain these differences in detail to consumers to prevent future problems."