Korea National Council of Consumer Organizations

Room 701, Seoul YWCA, 1-1, Myeongdong 1(il)-ga, Jung-gu, Seoul,

TEL +82-02-774-4050, FAX +82-02-774-4090

Press Release

Effective Date

: 7/25/2012

Staff in Charge

: Jo Jun-ha,a teamleader Ryu Soo-yang

Tel.

: +82-2-774-4050

Summer, the Busiest Season for Consumer Organizations Handling Complaints about Penalties Related to Travel/Hotel Reservations

- KNCCO announces results of its handling of domestic travel-related complaints

With summer holidays in full swing, there is a sharp increase again in the number of consumer complaints, as in the past. The Korea National Council of Consumer Organizations (KNCCO/Chairperson: Kim Yeon-hwa) has announced the results of the analysis of hotel/travel-related complaints that its 10 member organizations received through the 1372 Consumer Consultation Center, along with precautions to be taken by consumers.

One Third of Travel-related Complaints are Most Prevalent in July and August

The number of complaints about hotel and domestic travel received by the said organizations between January 1, 2010 and July 20, 2012 came to 13.362 cases (i.e., 4,173 cases in 2010; 6,190 cases in 2011; 2,999 cases in 2012). Those received in July and August, in which many people leave for summer holidays, stood at 4,365 cases (i.e., 1,427 cases in 2010; 2,283 cases in 2011; 655 cases in 2012), which shows that about a third of the complaints received throughout a year are focused on July and August.

Most Complaints in Summer are Related to Unreasonable Penalties Imposed

Out of a total of 4,365 complaints received in July and August 2010 through 2012 (until July 20 in the case of 2012), those related to businesses’ failures to return contract amounts or impositions of excessive penalties after contract cancellations came to 2,574 cases (i.e., 765 cases in 2010; 1,428 cases in 2011; 381 cases in 2012) or 59%. They are followed by those related to quality and rude employees (433 cases or 9.9%) and those related to profiteering (366 cases or 8.4%).

It appears that hotels at holiday destinations charge exorbitant rates during high seasons and adopt special terms and conditions that shuffle off all burdens to guests related to the risk of vacant guestrooms during high seasons. It is also noteworthy that there are many complaints about the substandard quality of hotel facilities and pensions doing business in dilapidated private houses.

Jeju on the Top of Complaint List

In terms of the ranking in the number of complaints, Jeju-do (173 cases) was on the top of the complaints list, followed by Gangwon-do (43 cases) and Busan (26 cases) in July/August of 2010. During the same period of 2011, the ranking remained the same, i.e., Jeju-do (250 cases), followed by Gangwon-do (133 cases) and Busan (44 cases). In 2012 (July 1 through July 20), the ranking remained the same, i.e., Jeju (84 cases), followed by Gangwon-do (7 cases) and Busan (2 cases). This shows that popular holiday destinations are likely to be targets of complaints.

Consumers are Advised to Review Special Terms and Conditions Carefully before Signing Travel Contracts Offered During High Seasons

In July (July 1-July 20) 2012, a total of 655 cases of travel/hotel-related complaints were received. Consumers are urged to review offers made by travel agencies prior to accepting them.

During high seasons, hotels offer widely varying rates. Thus, it is important to check whether favorable rates apply to your travel period in advance. When a hotel designates no such period for summer holiday rates or the like, the summer peak season fares set by the Fair Trade Commission are in place between July 15 and August 24. If you need to cancel a hotel reservation, it is advisable to check in advance whether it falls in a high season or on a weekend, as such factors affect the amount reimbursed to you.

You should also check in advance the terms and conditions of the contract that you are going to sign with a business, including those related to penalties, as there are businesses that apply special terms and conditions for high seasons.

Please note that a contract stipulating exorbitant penalties concerning contractual default may be invalid or subject to sanctions under The Regulation of Standardized Contracts Act. In the case of a dispute of this nature, you can obtain assistance from the Consumer Consultation Center (phone No. 1372).

< KNCCO’s member organizations >
Korea Consumer Affairs Institute, Consumers Union of Korea, National Council of the Young Men’s Christian Associations of Korea, Korea YWCA Federation, Green Consumer network in Korea, Korean Federation of Housewives Club, National Council of Homemakers’ Classes, Consumers Korea, Headquarter of Korean Women’s Association, Korea Consumer Education Center