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Travel Booking Risks: How to Avoid OTA Cancellations and Hidden Fees in 2023

Daniel Kim Views  

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Travelers are still being shortchanged by online travel agencies (OTAs) that cancel bookings without notice and bury the true cost in confusing pricing. The Korea Consumer Agency has published related cases and is urging consumers to stay alert.

On the 24th, after reviewing 200 listings across six major OTA platforms, the agency found that consumers filed 246 damage-relief requests between January 2022 and August of last year.

By complaint type, the largest share—69 cases (28.0%)—was for contract nonperformance, where the advertised schedule and the actual service did not match.

  Image created by AI tool related to article content
  Image created by AI tool related to article content

Next were contract cancellations—65 cases (26.4%)—where travelers were notified just before departure because they were left off the roster or the tour failed to meet the minimum headcount. Complaints about companies refusing refunds immediately after payment accounted for 63 cases (25.6%).

Standard overseas travel terms require travel agencies to notify consumers at least seven days before departure if they cancel a contract due to insufficient participants.

However, among the 22 products that disclosed a minimum departure headcount, the agency found that 16 (72.7%) either canceled suddenly one to three days before departure or had no clear notification standard in place.

Also, 41 products (20.5% of those surveyed) displayed low child fares as the representative price or presented option prices in a way that made them look like the total product price.

The Korea Consumer Agency recommended that businesses comply with the seven-day cancellation-notice rule, clearly display the total price on the product’s main page, and establish specific refund policies for force majeure events such as natural disasters.

It also advised consumers to check the cancellation-notice period and refund rules for tours with minimum participant requirements, verify the final payment amount carefully, and think twice before purchasing nonrefundable products.

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Daniel Kim
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