The investigation showed particularly steep increases during popular events like “Waterbomb,” a summer music festival series combining water activities with performances. (Image courtesy of Yonhap)
SEOUL, Oct. 30 (Korea Bizwire) – A government investigation has revealed dramatic price hikes at hotels and lodging facilities during South Korea’s peak summer season, particularly around major music festivals and local cultural events.
The Korea Consumer Agency disclosed its findings on October 29 after examining prices at 347 accommodations listed on booking platforms. The investigation showed particularly steep increases during popular events like “Waterbomb,” a summer music festival series combining water activities with performances.
During the Waterbomb festivals, held from July 27 to August 31, 25.5% of the 47 surveyed accommodations near six festival venues raised their weekend rates by an average of 52.4%, from 140,000 won to 218,000 won.
One hotel stood out for its aggressive pricing, increasing rates from 160,000 won to 800,000 won during the festival period – a 400% jump.
Similar price surges were observed during PSY’s “Soaked Show” concert series. From July 27 to August 25, 68.3% of 41 accommodations near five concert venues increased their weekend rates by 50%, from approximately 106,000 won to 157,000 won.
One motel nearly tripled its prices, raising rates from 90,000 won to 250,000 won – a 177.8% increase.
The investigation also found widespread price hikes during local festivals, with 90.5% of surveyed accommodations raising rates by up to 126.8%.
During the peak summer season of July and August, motels increased prices by up to 196% compared to off-peak periods, while hotels and pension houses raised rates by up to 192% and 111% respectively.
The consumer watchdog’s analysis of 200 complaints filed between 2022 and July 2024 revealed that 60.5% were related to unilateral cancellations by businesses and demands for additional payments due to price changes.
In one case, a consumer who paid 232,000 for a pension house at an advertised special rate was later told to either pay peak season rates or cancel the reservation.
In a survey of 180 consumers who reported lodging-related grievances, 28.2% cited demands for additional fees as their primary complaint, followed by refusal of cancellations or refunds (20.8%) and facilities not matching advertised descriptions (20.5%).
The investigation also uncovered widespread non-compliance with consumer protection standards.
Nearly half of the surveyed accommodations (49.6%) failed to properly disclose compensation policies for business-initiated cancellations, while 56.8% incorrectly stated that refunds were not available for customer cancellations, contrary to regulations requiring partial refunds.
In response to these findings, the Korea Consumer Agency has recommended that lodging providers clearly communicate additional fees in advance and revise their refund policies to align with consumer protection standards. The agency also advised businesses to specify peak season dates, pricing, and refund policies more transparently.
M. H. Lee (mhlee@koreabizwire.com)
