Consumers are not appropriately compensated for overseas travel cancellations made by travel agencies or themselves according to regulatory standards. This prompted the Korea Consumer Protection Board (KCPB) to survey 282 consumers who have sought redress last year regarding overseas travel. 

 

■ Appropriate compensation not provided for cancellation prior to departure 

Among 140 consumers whose trip was cancelled by the travel agency or due to personal reasons, 45.7% received due compensation according to the ‘Compensation Criteria for Consumers’ Damages’. Only 41.2% of consumers were compensated who had to cancel due to a family member’s serious illness or death. 

 

According to the Overseas Travel Policy, the total cost of trip is refunded if consumers cancel prior to departure due to unavoidable circumstances. The unavoidable circumstances stipulated in the Policy are as follows:

① If a family member becomes seriously ill or dies

② If you get sick or suffer physical injuries that prevents you from traveling

③ If your spouse or guardian is hospitalized for more than three days and cannot leave the hospital prior to the departure date

 

The most types of contract violations made by travel agencies are described in the following table. 

Classification	Changes in Travel Itinerary	Changes in Accommodation	Changes in Meals	Forcing Optional Tours	Forcing Tips	Others
%	49.0	15.6	11.6	6.8	6.1	9.5

 

■ Overseas travel advertisements contain insufficient information 

KCPB analyzed overseas travel ads of 38 travel agencies printed in major daily newspapers in March 2006 and found that 28.9% (11 travel agencies) failed to include required information.

In accordance with the Tourism Promotion Act, travel advertisements should include the following information:

① Business registration number, name and location of travel agency

② Description of travel package and its itinerary

③ Travel expenses

④ Information on transportation, accommodation and meal services

⑤ Minimum number of travelers

 

■ Most complaints involve overseas travel cancellations 

KCPB received 343 redress cases related to overseas travel last year, up from 337 cases in 2004. The following table describes the types of consumer damages involving overseas travel which occurred in 2005. 

 

Unit: Number of Cases (%)

Contract cancellations	172 (50.1)	Unreasonable charges	12 (3.5)
Changes in travel itinerary & accommodation	80 (23.3)	Unfriendly tour guides	7 (2.0)
Injuries & illness	23 (6.7)	Forcing tips	4 (1.2)
Unavailability of airline tickets	14 (4.1)	Others	17 (5.0)
Passport & visa	14 (4.1)	Total	343 (100)

 

Based on the above findings, KCPB will propose to the Ministry of Culture and Tourism to tighten regulations on travel agency business registrations and to establish standards on travel advertisements. Furthermore, it will propose to the Ministry of Finance and Economy and the Korea Fair Trade Commission to revise the Compensation Criteria for Consumers’ Damages (related to overseas travel industry) and Overseas Travel Policy. 

 

Source: Consumer Dispute Settlement Department II