Be ware of overseas travels, requesting additional charges resulting from exchange rate increase

Many consumer complaints have been received by the Korea Consumer Agency regarding additional charges for overseas travels resulting from recent increases in the exchange rate.

Consumer claims have been caused by additional payments or cancellation penalty requests due to exchange rate increases.  Travel agencies have not complied with the exchange rate regulations and they have charged all additional costs to consumers.        

According to the overseas travel provisions (rectified by the Korea Fair Trade Commission, 99.3.26/ article 11 regarding changes in travel expenses), travel  agents shall ask the increased amount to customers when  overseas travel expenses for transportation or accommodations rise over 5% or the exchange rate rises over 2% more than the contracted amount.  Also, travel agencies should notify the travel expense increase to customers at least 15 days prior to departure.  

Under the overseas travel provisions (article 13), the travel expense difference should be settled before the departure when the travel condition or cost changes occur before the departure.  Besides, the travel expense difference is required to be settled within 10 days of arrival in case of cost changes during the voyage.     

On the other hand, travel agents or customers shall cancel the contract without covering any damages when the contract execution is not possible due to the exchange rate increase. (Overseas travel provisions, article 15)

The Korea Consumer Agency has received 310 consumer complaints regarding additional charge requests for overseas travels as of October 31, 2008.  Among the consumer claims, 295 cases (95.2%) of October were related to the recent exchange rate increase.

Monthly consumer claims over additional charge requests for overseas travels

(No. of Claims)

According to the overseas travel provisions, travel agencies should notify consumers on the additional charges for overseas travels at least 15 days prior to departure.  However, they have not complied with the regulations and consumer damages shall occur from the tour operators’ unilateral acts.    

Thereby consumers are advised to go over carefully the terms and condition when receiving additional charge requests from travel agents.  Consumers shall ask the Korea Consumer Agency to help in resolving consumer disputes regarding the matters.  All relevant documents are needed to submit in order to handle the complaints properly.

Consumer Damages