Analysis of Travel-Related Damage Relief Applications by the Korea Consumer Agency
Contract-Related Damages Account for the Majority at 66%
Frequent Complaints Over Arbitrary Itinerary Changes, Guide and Accommodation Quality
The Korea Consumer Agency announced on the 27th that, out of a total of 3,922 travel-related damage relief applications received over the past five years from 2020 to last year, damages related to overseas travel accounted for 85.6% (3,356 cases) of the total.
The departure hall of Incheon International Airport Terminal 1 is bustling with crowds heading overseas. Photo by Jo Yongjun
The number of travel-related damage cases has been increasing as demand for overseas travel has normalized following the COVID-19 pandemic. In 2024, the number of related damage relief applications was 1,167, an increase of 30.2% compared to 896 cases in the previous year.
An analysis of the types of applications over the past five years showed that damages related to contracts?such as excessive penalties for contract cancellations and failure or delays in refunds?were the most common, accounting for 66.0% (2,587 cases). This was followed by damages related to incomplete fulfillment of contracts and travel quality, such as arbitrary changes to itineraries and dissatisfaction with local guides or accommodations, which accounted for 25.4% (996 cases).
An analysis of damage relief applications related to contracts revealed that it was common for consumers not to receive refunds according to the terms, even when installment-based travel contracts matured or were terminated early. There were also many cases where consumers did not receive the agreed-upon refund amount when canceling package travel contracts. The Korea Consumer Agency analyzed that these problems are presumed to stem from travel agencies' lack of liquidity, as they have not recovered from the accumulated deficits following the COVID-19 pandemic.
The Korea Consumer Agency is cooperating with local governments to address these issues by identifying the financial status of travel agencies that fail to provide refunds or delay them. If a travel agency is found to be effectively closed or out of business during this process, the local government plans to cancel the business registration ex officio, enabling consumers to receive compensation through the business guarantee insurance.
Consumer damages related to travel quality occurring during trips are also on the rise. However, in these cases, it is difficult to receive compensation because subjective views of the parties are involved, leading to significant differences in perspective, and it is not easy to prove the damages. The Korea Consumer Agency recommended that travel agencies provide consumers with specific information at the time of contract and continue to monitor consumer complaints during the trip so that issues can be addressed locally.
To establish more fundamental solutions, a "Travel Consumer Council" was formed last year with five travel operators, including the Korea Association of Travel Agents, Hana Tour, Modetour, Yellow Balloon, Chamjoeun Travel, and Nol Universe. Through this council, the current status of major types of damages was reviewed, and measures to improve unfair travel product sales practices were developed and shared across the travel industry.
The Korea Consumer Agency advised consumers to check information such as whether a travel agency is enrolled in business guarantee insurance and to review travel reviews before signing a contract, in order to select a reliable company. Consumers were also advised to check the penalty regulations and detailed product information before purchasing travel products. In addition, the agency recommended paying by credit card in installments whenever possible, so that if the contract is not fulfilled, consumers can exercise their right to dispute the installment payment. If complaints arise during the trip, preparing written or recorded evidence to prepare for disputes is also recommended.
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