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Traveler loses full payment after Malaysia trip canceled without notice

Published: 28 Apr. 2025, 09:13

A person holds a passport at Incheon International Airport on July 1, 2024. [NEWS1]

A traveler who booked a three-night, five-day trip to Kota Kinabalu, Malaysia, had their plans canceled without warning, losing the entire payment after the travel agency failed to refund the cost and stopped responding.

The traveler had booked the trip with a travel agency last November and paid 2.05 million won ($1,400) in cash. Sixteen days before the scheduled departure on Feb. 5, the agency canceled the trip.

Under the agreement, the traveler was entitled to a full refund including a 10 percent penalty fee. But the agency did not comply and eventually cut off all communication, leaving the traveler unable to recover the payment.

Consumer rights authorities are urging heightened caution as similar cases involving package tours continue to rise. There were 3,922 travel-related complaints filed over the past five years, according to the Korea Consumer Agency (KCA) on Sunday.

The number of complaints surged to 1,152 in 2020 during the Covid-19 pandemic, then fell sharply to 264 in 2021.

Complaints began to climb again, reaching 443 in 2022, 896 in 2023 and 1,167 last year. Of the total cases, overseas travel accounted for 3,356, or 85.6 percent.

The most common type of complaint involved disputes over contract terms, including excessive cancellation fees and delayed or incomplete refunds, accounting for 2,587 cases or 66 percent.

Another 996 cases, or 25.4 percent, stemmed from issues such as sudden changes to itineraries, dissatisfaction with local guides or accommodation and complaints about pressured shopping excursions.

Many complaints involved travelers who failed to receive refunds after mid-contract cancellations.

The agency attributed this trend to the deteriorating financial health of travel companies, worsened by accumulated losses during the pandemic.

The KCA advised travelers to carefully select reputable agencies and thoroughly review cancellation policies before making purchases.

It also recommended paying by credit card and using installment payments when possible, allowing consumers to exercise their "right to withhold payment" if contract terms are not honored.

The agency emphasized the importance of collecting evidence such as videos, photos and recorded conversations in the event of disputes during travel.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HAN YOUNG-HYE [[email protected]]