Excessive Cancellation Fees: Consumer Alert Issued for Vacation Accommodation Platforms

The Korea Consumer Agency issued a consumer alert today, June 19, regarding online accommodation bookings, as reports of damages related to lodging contracts frequently occur during the summer vacation season.

The Korea Consumer Agency received 6,224 applications for damage relief related to accommodation contracts between 2023 and 2025.

Data showed that 21% of all reported damages were concentrated during the peak summer vacation months of July and August.

The most common issue, accounting for 65.5% of cases, was related to "contract cancellation or termination," such as the charging of excessive cancellation fees.

This was followed by "non-performance or incomplete performance of contracts," such as poor quality of accommodation services at 22.0%, and "insufficient display or advertising," such as undisclosed additional charges for extra guests, at 8.2%.

Approximately 72.8% of the damage relief applications related to accommodation contracts involved online accommodation platforms.

Under the E-Commerce Act, consumers who purchase goods or services through online platforms are entitled to withdraw their subscription within seven days of the contract date.

However, as there are many cases where platforms refuse such withdrawals by citing "no-refund" policies, consumers are advised to make careful choices when booking.

The Korea Consumer Agency urged consumers to carefully check the details of refund policies posted by businesses, as well as travel dates, the number of guests, and accommodation information when finalizing a contract. They also advised consumers to keep reservation confirmations or records of their bookings in case of future disputes.
※ Please note: This article was translated by AI and may contain errors.