Updated Sep.4,2008 09:53 KST

Industry Headaches as Travelers Cancel Trips to Thailand
Korean travelers arrive at Incheon International Airport on Monday after being trapped in Phuket Airport for days due to anti-government protests in Thailand.

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Increasing numbers of Koreans are canceling their trips to Thailand due to political unrest there, sparking conflicts with travel agencies over penalties. Customers cite a government travel advisory urging Koreans to postpone all non-essential travel to the Southeast Asian country and refuse to pay. But with mounting cancellations, the travel agencies face huge losses.

On Monday and Tuesday, over 600 people canceled or changed Korean Air flight reservations to Bangkok. For Asiana Airlines, more than 1,000 people changed or cancelled reservations to Bangkok and Phuket between Monday and Wednesday. Because most are families or honeymooners, the majority cancelled the trip. Domestic airlines charge 10 percent of the fare for cancellations.

Travel agencies charge 50 percent of the total price for cancellations on the day of departure, and 20 percent for cancellations one to seven days before. Ten percent is charged for cancellations made eight to nine days in advance, and 5 percent 10 to 19 days earlier, according to their terms and regulations. But this is only when the cancellation is made for personal reasons.

Thai soldiers stand between a group of government supporters and anti-government demonstrators several blocks from the Government House in Bangkok on Tuesday. About 400 Thai soldiers were ordered to Bangkok on Tuesday to help police struggling to keep order./REUTERS

A customer who gave his name as Lee bought a travel package to Bangkok leaving on Sept. 3 for five days. ¡°They say in the news that Thailand is in a state of emergency, people are being killed and injured, and soldiers are being stationed in the streets. How can they tell me to go there for my vacation?¡± he demanded. The web boards of travel agencies were inundated with complaints about the penalty regulations. ¡°I worked hard to earn money for my trip, and now I¡¯m supposed to look for another destination after having to pay the penalty,¡± one furious customer wrote. ¡°You said we should decide at the last minute the day before the scheduled departure, but if I don¡¯t get to go, who will pay for my lost vacation?¡±

Amid the growing pressure, airlines and travel agencies on Wednesday decided not to charge penalties for some cancellations. Korean Air and Asiana will not charge the penalty for cancellations to Bangkok and Phuket from Aug. 31 to Sept. 10. and are calling customers who have already paid the penalty to make refunds. But this is the case only for the two flag carriers and large travel agencies like Hana Tour; foreign airlines and the majority of travel agencies still charge the penalty.

Airline companies and travel agencies normally deem travel unproblematic if the airport operates normally. If reservations are canceled due to unexpected circumstances, it is the travel agencies who pay the penalties to hotels and local tour operators. Therefore travel agencies are not legally required to refund the penalties paid by travelers, but some give refunds for the sake of their customer service image. If the political crisis in Thailand continues and the cancellations mount, the loss to travel agencies will increase exponentially.

(englishnews@chosun.com )