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Agoda Tops Accommodation Contract Complaints, Airbnb Leads in Settlement Rate

Korea Consumer Agency Analyzes Dispute Resolution Requests
Disputes Rise at Seven Major Platforms Including Yeogi Eottae and Booking.com
3,881 Cases Filed Over Three Years... 62.1% of All Accommodation Disputes
Penalty Disputes for Contract Cancellations Account for Nearly Half

As disputes related to accommodation contracts through domestic and international online lodging platforms continue to increase each year, 'Agoda' has received the highest number of consumer dispute resolution requests, while 'Airbnb' has recorded the highest settlement rate among platforms.


According to the Korea Consumer Agency, from 2022 to the first half of this year, a total of 3,881 consumer dispute resolution requests related to accommodation were filed against seven major lodging platforms: Agoda, Yeogi Eottae, Nol Universe, Naver, Airbnb, Booking.com, and Trip.com. These cases accounted for 62.1% of all accommodation-related requests. In the first half of this year alone, the number of dispute resolution requests for these seven platforms reached 808, marking a 44% increase compared to the same period last year.


Agoda Tops Accommodation Contract Complaints, Airbnb Leads in Settlement Rate

By company, Agoda accounted for the largest share with 37.8% (1,468 cases), followed by Yeogi Eottae (728 cases), Nol Universe (679 cases), Naver (414 cases), Airbnb (261 cases), Booking.com (210 cases), and Trip.com (170 cases).


The settlement rate between consumers and service providers in accommodation platform disputes has dropped significantly since 2024. Among platforms, Airbnb had the highest average settlement rate at 92.3%, while Naver had the lowest at 39.1% on average.


An analysis of 2,064 major accommodation platform dispute resolution requests received over the past year showed that penalty disputes due to contract cancellations by consumers accounted for the largest share at 49.1% (1,013 cases). This was followed by disputes related to non-fulfillment or incomplete fulfillment of contracts at 26.3% (542 cases), insufficient information provision at 7.8% (161 cases), and force majeure or cancellations at 5.3% (110 cases).


Looking at the reasons for dispute resolution requests for the top three platforms, each with more than 200 cases during the same period, 'penalty for contract cancellation' was the most common dispute. By platform, insufficient information provision accounted for a relatively high 11.5% of cases for Agoda, while non-fulfillment or incomplete fulfillment of contracts was relatively high for Yeogi Eottae and Nol Universe at 31.8% and 39.4%, respectively.


In August, the Korea Consumer Agency recommended improvements to the seven lodging platforms, including Agoda, to address factors causing consumer disputes. In response, the platforms are working to strengthen information provision on key contract terms such as fees and to enhance consumer convenience, reflecting the agency's recommendations.


The Korea Consumer Agency plans to continuously monitor whether the platforms implement these improvements. In addition, the agency emphasized to consumers that about 50% of accommodation platform dispute resolution requests are related to penalty disputes due to contract cancellations, urging caution when entering into or canceling contracts. Specifically, before signing a contract, consumers should ▲ carefully check the refund policy posted by the business operator ▲ be especially cautious if the conditions are non-refundable ▲ thoroughly review key details such as usage dates, number of guests, and main information about the accommodation ▲ and after signing the contract, keep records such as the reservation confirmation.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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