With the Chuseok holiday approaching, domestic accommodation prices have risen significantly compared to last year, further increasing the burden on travelers. During the holiday period, peak season rates are typically applied, and some accommodations are adding various "hidden" extra charges, leading to growing consumer dissatisfaction.

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According to Statistics Korea, the consumer price index for condominium usage last month was 173.07 (2020=100), up 15% from the same month last year. Since the beginning of this year, condominium rates have continued to show double-digit increases, with particularly high growth rates in January (20.4%) and May (20.3%), both exceeding 20%. This is the largest increase since February 2018 (27.1%).

As accommodation prices rise across the board, the gap between peak and off-peak season rates has also widened. According to a survey by the Korea Consumer Agency of 347 accommodations listed on booking platforms last year, during the summer vacation season (July to August), motel rates increased by up to 196%, pensions by 111%, and hotels by 192% compared to the off-season. This year, with the Chuseok holiday stretching up to 10 days, a rate hike comparable to the peak season is expected.

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In addition to rising accommodation costs, some lodgings are operating with "hidden charges," further fueling consumer complaints. Regardless of room size or capacity, some accommodations deliberately set a low standard occupancy to make the price appear cheaper, then charge additional fees on-site for extra guests. For example, at a pension in Jeju, even though the maximum capacity is eight people, the standard occupancy was set at two, with an additional charge of 20,000 won per extra guest.

Earlier this month, an online post by a user who visited a pension in Gapyeong, Gyeonggi Province, sparked controversy. User A was looking for a place to stay for seven people and booked a pension for 699,000 won. However, upon arrival, it turned out that this was the rate for two guests only. Although the room had five beds, the standard occupancy was set at two, so A's group had to pay an extra 30,000 won per person for the remaining five guests, totaling 150,000 won. On top of that, a barbecue electric grill fee of 20,000 won per table was added, bringing the final amount to 889,000 won. A commented, "With this money, I could have gone to Southeast Asia," and criticized, "Stop using patriotism as a marketing tool."

Complaints about unexpected on-site charges like these continue to rise. Some pensions charge separate fees for amenities such as heated swimming pools or barbecue facilities, and in many cases, card payment is not accepted. As a result, consumers who book online attracted by seemingly low prices end up paying much more due to unexpected extra charges at the site.

On July 25th, Incheon International Airport Terminal 1 was bustling with travelers. Photo by Kang Jinhyung

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As accommodation and other travel-related costs rise, more people are choosing to travel abroad instead of domestically. Travel platform Nol Universe reported that during this Chuseok holiday period (October 3 to 12), the number of overseas flight bookings increased by 37% compared to the same period last year.

The increase in demand for overseas travel appears to be influenced by relatively higher satisfaction levels. According to a "Domestic and Overseas Travel Preference Survey" released by the Federation of Korean Industries in July, the overall satisfaction score for domestic travel was 8.3 out of 10, lower than that for overseas travel (8.7). Reasons cited for lower satisfaction with domestic travel compared to overseas included ▲high prices at tourist destinations (45.1%), ▲lack of unique local tourism content (19.4%), and ▲overconcentration of attractions in certain regions (9.0%).

Meanwhile, ahead of the Chuseok holiday, the government has announced measures to eradicate price gouging and stabilize the prices of key goods. The Ministry of the Interior and Safety has designated the period from September 17 to October 9 as a "Special Price Stabilization Management Period for Chuseok," and plans to intensively monitor price gouging and price hikes at tourist sites, traditional markets, and local festivals.