2024.06.18. The Fair Economy — Campsite platforms and operators are restricting or prohibiting one-night bookings and stays, leading to ongoing consumer complaints and inconvenience. In response, the government is stepping in to assess the situation and address unfair practices.
A survey conducted by the Fair Trade Commission and the Korea Consumer Agency of five major campsite platforms and 100 campsites registered on them found that a significant number of campsites operate a two-night priority booking system and restrict payment methods to bank transfers only, causing considerable inconvenience to consumers.
The five major camping ground platforms are Yanolja, GC COMPANY Corp, Habb Communication, Camping Talk, and CAMFIT.
The terms of service for the camping ground platforms were also found to contain unfair clauses that set unfavorable trading conditions for consumers, such as imposing excessive cancellation penalties or excluding operators' legal liability, indicating a need for improvement.
According to the Fair Trade Commission and the Korea Consumer Agency, there is an increasing number of sites implementing a "two-night priority reservation system" that allows reservations of two or more nights at any time, while one-night reservations are only possible when the usage date is imminent.
Auto camping grounds are sites where campers can drive in and set up equipment at the campsite. Of the 100 camping grounds surveyed, 78 were auto camping grounds, and 68 of those (87.2%) were operating the two-night priority reservation system.
Among the 78 auto camping grounds, 30 (38.5%) allowed one-night bookings starting "seven days before" the planned stay date. Some even allowed bookings only "one day before" the stay (one site), while others accepted only two-night bookings at all (four sites).
Such restrictions effectively block one-night reservations and stays. Given that consumers typically book camping grounds about two weeks (16.7 days on average) in advance, this two-night priority reservation system is highly likely to generate consumer complaints.
Among auto camping ground users surveyed (139 people), 42.4% (59 people) said they had been forced to book two nights because of these conditions, and 77.0% (107 people) said they tried to book during the period when one-night reservations were allowed but could not, because bookings were already full.
Of the 100 surveyed campsites, 34 (34.0%) only allowed bank transfers for payment, and among the 352 consumers who used those campsites, 60.2% (212 people) reported inconvenience due to the payment method restriction.
Notably, among the 34 camping grounds that accepted only bank transfers, more than half—18 sites—charged a fee ranging from 500 won to 10,000 won (about $0.36 to $7.20) under the name of bank fees, even when full refunds were possible for cancellations. Among all 500 survey respondents, 46.0% (230 people) said they had paid such fees in these situations.
Under the Consumer Dispute Resolution Standards (for the lodging industry), cancellation penalties are applied differently depending on whether the consumer or the operator is at fault, and on the timing of the stay, such as peak season or weekends. In particular, when the operator is at fault, the standards require not only a refund of the deposit but also compensation of 10% to 60% of the total fee.
The standards also require a refund of the deposit if a contract is canceled because travel to, or use of, the accommodation becomes impossible on the day of the stay due to weather conditions or a natural disaster.
An examination of the cancellation rules at the surveyed camping grounds found that some had no provisions corresponding to the dispute resolution standards, while others had provisions that differed from those standards.
For example, 97 campsites calculated cancellation fees without distinguishing between peak seasons and weekends when the consumer was at fault, and 74 campsites did not have compensation provisions for cancellations due to the operator's fault. Additionally, 45 campsites lacked a deposit refund clause for cancellations caused by climate change or natural disasters.
The Korea Consumer Agency plans to recommend to the surveyed operators that they expand the availability of one-night reservation dates, diversify payment methods, and improve transaction terms by referencing the dispute resolution standards to ensure cancellation fees are imposed at reasonable levels.
Specifically, given that reservations are typically made about two weeks before the planned stay, the agency plans to have the window for one-night bookings extended from "seven days before" to "15 days before" the stay, require camping grounds to offer payment methods other than bank transfer, and have camping grounds with inadequate cancellation-penalty rules establish proper provisions to prevent future disputes.
Meanwhile, an examination of the terms of service used by the five camping ground platforms during the survey found that they contained unfair clauses, such as excessive cancellation penalties and blanket exemptions from operators' legal liability.
In response, the Fair Trade Commissio plans to launch an ex officio investigation into the unfair terms found at the camping ground platforms during the survey, examining them closely, while handling the matter as quickly as possible to prevent consumer harm ahead of the upcoming vacation season.
The Fair Trade Commission and the Korea Consumer Agency said, "We will continue to work to resolve consumer inconveniences in various areas closely related to daily life and to improve unfair trade practices."
0 Comments
No comments yet.