More than half of consumers using overseas accommodation booking platforms suffered damages from false advertising, refund refusals and opaque pricing, a survey showed. Only 10% said their disputes were fully resolved.
According to a survey of 1,000 consumers conducted by the Seoul Metropolitan Government and the consumer group "Consumers Together," 55% of respondents reported damages from false or exaggerated advertising, refund and penalty disputes, and unclear pricing on the six leading overseas lodging platforms in Korea — Agoda, Airbnb, Expedia, Booking.com, Trip.com and Hotels.com. The survey was released Wednesday.
Damage amounts ranged mostly between less than 100,000 won and 100,000 to 300,000 won, accounting for 75% of total cases.
"False or exaggerated advertising" and "refund and penalty issues" tied for the top complaint at 26% each, followed by "unclear pricing" at 24%. A total of 41% of respondents said they were dissatisfied or very dissatisfied with these platforms.
Dispute resolution outcomes were equally bleak. Some 64% of respondents said their issues were "only partially resolved," while nearly 26% said their disputes were "not resolved at all." Only 10% reported that their disputes were fully resolved.
Half Suffer Damages, Only 10% See Resolution
Monitoring of the six platforms also revealed problematic practices. Some operators used so-called "dark patterns," initially displaying prices excluding taxes and fees to attract consumers, then raising the final price at the payment stage. Sensitive information such as cancellation penalties or non-refundable conditions was found in small print or hidden in inconspicuous locations.
The survey also found that when refund or penalty disputes arose, platforms often pushed consumers to resolve issues directly with the overseas lodging providers. Combined with language barriers and lack of information, the structure makes it easy for consumers to give up on dispute resolution altogether.
The Seoul city government plans to urge the Fair Trade Commission and the registration authorities of each platform to strengthen supervision. Article 20 of the Act on the Consumer Protection in Electronic Commerce stipulates that mail-order intermediaries must take measures to resolve consumer complaints or disputes without delay. The city also plans to propose to relevant agencies the introduction of a tentatively named "Overseas Accommodation Booking Platform Consumer Protection Obligation Inspection Survey," which would monitor whether platforms fulfill their consumer protection duties and disclose the results.
"Use of overseas accommodation booking platforms is increasing, but consumer damages keep recurring because the party responsible is unclear when disputes arise," a city official said. "Based on this survey, we will propose institutional improvements and induce responsible management by platforms to further strengthen the consumer safety net."
