Step 2.5 Service Partially Reduced... Consumers Are Angry
Hotel and Academy Prices Remain Unchanged
Benefits Reduced, Compensation Measures Unclear
Some Wedding Halls Engage in Bold Pricing
Demanding Guaranteed Numbers Beyond Capacity
[Asia Economy Reporter Minyoung Cha] #Kim Somin (alias) had an unpleasant experience when she went to use the couple's "hokangseu" (a portmanteau of hotel and vacation) package she had purchased in advance from TV home shopping on the 30th of last month. This was because the benefits of using the club lounge changed drastically as social distancing measures were strengthened. She expressed dissatisfaction, saying, "I can understand giving only a single breakfast item, but I question why daytime snacks and cocktail time were all limited to one-time service," adding, "I came back feeling upset due to the unilateral service policy."
On the 3rd, as social distancing was raised to level 2.5 nationwide, it was revealed that hotels, academies, wedding services, and others were unilaterally imposing changed policies on consumers. Although the actual service level was downgraded compared to what was promised at the time of reservation, no separate consumer compensation measures were prepared, leading to an expected increase in disputes.
In the hotel industry, more places have changed their club lounge operation policies. A representative example is the Sheraton Seoul Palace Gangnam couple package priced around 150,000 KRW sold through GS Home Shopping. Orders surged due to a super special price strategy including club lounge benefits. However, as social distancing was strengthened, the hotel uniformly changed the club lounge operation policy on the 20th of last month, limiting daytime snacks in the lounge to one serving per person. Cocktail time was also divided into two sessions, limiting each person to one serving of a five-item set menu. In the case of Lotte Hotel Jeju, the 'Summer Flash' package including the 'Pungcha Lounge' benefit was sold from July 1 to August 31, but the Pungcha Lounge is currently suspended. It has been replaced by the bar & lounge on the lobby floor.
Wedding halls demanding guaranteed numbers exceeding capacity and engaging in aggressive business practices are also noticeable. Woo Hyunhee (alias), a bride-to-be at a wedding hall in Dong-gu, Daejeon, complained, "The entrance was limited to 50 people per wedding hall, but the wedding hall insists on a guaranteed number of 100 people no matter what." According to the 'COVID-19 Consumer Dispute Mediation Center' in Gyeonggi Province, consultations related to wedding halls increased sharply from 60 cases in January to 563 in February and 447 in March as COVID-19 spread, then decreased to around 150 cases after April, but as COVID-19 resurged mainly in the metropolitan area, 318 consultations were received as of August 20.
Academies also switched to non-face-to-face education services, but some academies maintained tuition fees as before, causing controversy. Kim Haetnim (alias), a housewife with a middle school child, said, "We pay the full tuition, but they say it will be replaced with supplementary classes," adding, "Because there is no policy standard, some places ask for only 70% payment, while others charge the full normal price, causing confusion." Choi Sumin (alias), a housewife with a younger child, also complained, "I receive payment request messages saying that face-to-face classes and tuition fees are the same, but I think it would be right to have a structure where both sides bear some loss."
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Professor Eunhee Lee of the Department of Consumer and Child Studies at Inha University explained, "Industries such as travel, tourism, and hotels are struggling, leading to conflicts with consumers over loss issues," adding, "Discussions on supplementary budgets such as disaster relief funds are ongoing, and it is necessary to select some heavily affected industries to provide support funds or offer tax benefits."
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