'Most Complaints About Contract Cancellation and Penalty Before Departure'
"Be Sure to Check Important Information Such as Cancellation Fees"

As demand for overseas travel increases, related consumer damages have also surged. In particular, elderly people aged 60 and over frequently suffered damages due to not properly recognizing important information such as penalties during the process of contracting package products sold by travel agencies or home shopping channels.


According to the Korea Consumer Agency on the 23rd, a total of 370 cases of overseas travel-related damage relief applications from elderly consumers (aged 60 and above) were recorded from January 2021 to June this year. Especially last year, there were 181 cases, a 331.0% increase compared to the previous year (42 cases). The most common reason for damage relief applications was "complaints about contract cancellation and penalties before departure," accounting for 63.8% (236 cases). This was followed by "breach of contract" at 12.7% (47 cases), "quality and service complaints" at 8.9% (33 cases), "safety accidents and facility damages" at 5.7% (21 cases), and "complaints related to airlines" at 4.0% (15 cases).


The departure hall of Incheon International Airport Terminal 1 is bustling with crowds heading overseas. Photo by Jo Yongjun jun21@

The departure hall of Incheon International Airport Terminal 1 is bustling with crowds heading overseas. Photo by Jo Yongjun jun21@

View original image

The frequent complaints about contract cancellation and penalties before departure were found to be because most overseas travel products use special terms and conditions rather than the standard overseas travel terms. The Consumer Agency investigated 426 overseas travel product terms from 8 domestic travel agencies and 9 home shopping companies, and found that only 28.2% (120 products) used the standard overseas travel terms. The remaining 71.8% (306 products) used special terms or a combination of special and standard terms.


Special terms separately agreed upon by travel agencies and consumers allow for penalty charges even in cases where the standard overseas travel terms exempt penalties. For example, penalties may be charged if elderly travelers cancel due to health reasons such as illness or injury before departure, so the Consumer Agency advised carefully reviewing the terms and conditions.


In a recent survey of 366 elderly people who used overseas travel products within the last two years, 36.9% responded that they "did not properly recognize the contract contents in advance," which was the second most common complaint after "dissatisfaction with meals and accommodations" (47.8%). A representative from the Consumer Agency urged, "Before contracting, consumers should thoroughly understand information about travel products such as flights and accommodations, and elderly travelers should carefully check the detailed contents of travel insurance included in the contract to prepare for accidents or injuries during travel."



Meanwhile, the Consumer Agency recommended that 9 home shopping companies and 9 major domestic travel agencies improve the display of important contract contents and strengthen notifications. These home shopping companies and travel agencies agreed to enhance notifications about important matters such as special terms and conditions and to participate in preventing damages to elderly consumers.


This content was produced with the assistance of AI translation services.

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

Today’s Briefing