The Korea Consumer Agency announced on July 10 that it is issuing a consumer damage prevention advisory for airfares, accommodations, and rental cars, which are widely used by travelers visiting Jeju during the summer vacation season.

Consumer damages related to airfares, accommodations, and rental cars in the Jeju region have been occurring continuously every year. Over the past three years, from 2022, the Korea Consumer Agency received 739 cases related to airfares, 420 cases related to accommodations, and 364 cases related to rental cars. As of last year, the number of cases involving airfares and rental cars increased by 47.3% and 41.3%, respectively, compared to the previous year. Of the 1,523 damage relief cases reported over the past three years, August, when summer vacations are concentrated, accounted for the highest number with 233 cases, followed by September with 158 cases, and October with 135 cases.

Among the damage relief cases related to airfares in the Jeju region, "cancellation penalty fees for air tickets" accounted for the largest share at 53.7% (397 cases), followed by "flight delays or non-fulfillment" at 19.8% (146 cases), and "baggage damage or loss" at 6.8% (50 cases).

Korea Consumer Agency Issues Warning to Prevent Damage in Airfare, Accommodation, and Rental Car Services
Over the Past 3 Years, 1,523 Damage Relief Cases Reported, Increasing by More Than 40%
August, When Summer Vacations Peak, Has the Highest Proportion of Reports
Cancellation Penalty Fees for Air Tickets Account for 53.7% of Damage Cases, the Most Frequent

The main reason for the high number of cancellation penalty fee cases is that, even though air tickets purchased through e-commerce are subject to withdrawal of subscription under the Act on Consumer Protection in Electronic Commerce, some businesses refuse to accept such withdrawals. In addition, special promotional air tickets with non-refundable conditions and tickets close to their departure date may also have restrictions on refunds or withdrawal of subscription, which frequently leads to disputes, according to the Korea Consumer Agency.

There were also cases where some online travel agencies (OTAs) imposed additional agency cancellation fees on top of airline penalty charges when reservations were canceled. The Korea Consumer Agency advised consumers to check the cancellation penalty policies before purchasing air tickets, as it is not necessarily unfair for travel agencies to impose separate cancellation fees.

Some travel agencies and airlines impose additional cancellation fees beyond the penalty charges
Cancellation penalties related to accommodation are the most common, followed by dissatisfaction with facilities
There are many cases where businesses refuse refunds due to excessive penalty charges
Carefully check cancellation and change conditions before signing a contract to avoid damage

In addition, if damages occur due to flight delays or non-fulfillment by airlines, consumers can claim compensation unless the delay was caused by unavoidable circumstances such as adverse weather conditions as stipulated by law. Therefore, it is important to request confirmation of the reason for the delay from the airline. To prevent baggage damage, items that are easily breakable, such as golf clubs, should be packed in dedicated cases.

For accommodation-related damages in the Jeju region, "reservation cancellation penalty fees" accounted for the largest share at 71.7% (301 cases) out of a total of 420 cases, followed by "facility dissatisfaction" at 11.7% (49 cases).

Disputes over accommodation reservation cancellation penalty fees arise because some businesses set excessive penalty charges citing peak season, or some OTAs refuse refunds for cancellations, claiming that they had notified non-refundable terms in advance. Due to the unique characteristics of Jeju, where flights are often canceled because of strong winds or other weather conditions, there have been cases where businesses refused refunds for unused accommodations, citing that the cancellation was made too close to the scheduled stay date.

The "Consumer Dispute Resolution Standards" stipulate that if a reservation is canceled on the day of stay due to weather changes or natural disasters that make it impossible to use the accommodation, the deposit must be refunded. Therefore, when choosing accommodations, consumers should check the refund and cancellation penalty policies related to weather conditions. To prevent damages related to facility dissatisfaction or poor hygiene, it is also necessary to check the level of the accommodation by searching for user reviews.

Status of Airfare, Accommodation, and Rental Car Damage Relief in Jeju Region. Provided by Korea Consumer Agency

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For rental cars, 38.2% (139 cases) of consumer damages were related to "cancellation penalty fee" disputes, while "accident handling disputes" accounted for 32.2% (117 cases). Disputes over rental car reservation cancellation penalty fees frequently occur because businesses often refuse refunds when cancellations are made close to the scheduled usage date. The "Consumer Dispute Resolution Standards" and the "Standard Terms and Conditions for Automobile Rental" stipulate that if a reservation is canceled at least 24 hours before the scheduled start time, the full deposit must be refunded.

Meanwhile, in the event of a rental car accident, disputes are frequent because businesses often overcharge for repair costs and loss of use fees, refuse to process insurance claims, or demand payment without providing repair statements. The Korea Consumer Agency also explained that some self-insurance products, such as those labeled "Super Self-Insurance" or "Full Self-Insurance," may mislead consumers into thinking all damages are covered, but in reality, the exemption limits are low, so consumers may have to pay excess repair costs or find that certain damages are not covered. Therefore, caution is needed.