Asia based online travel agent Agoda says the customer will ultimately suffer after it was ordered to amend its refund policy by South Korea’s Fair Trade Commission.
The FTC last week ordered Agoda and sister brand Booking.com to stop denying refunds for some hotel bookings and other products and services.
"Though we recommended that Agoda and Booking.com revise their no-refund clauses last November, the companies failed to take heed without any particular reason," the FTC report said.
"We decided last month to issue an order forcing them to make the necessary revisions."
"The companies will still be able to deny refunds on highly discounted products or bookings made just before the reservation date but it is unreasonable for them to deny refunds for reservations made months ahead," the FTC said.
Agoda says Korean customers ‘will no longer be able to access the lowest prices offered by accommodation providers’ as hotels generally stipulate no refunds are allowed on heavily discounted rates.
"The accommodations available on the Agoda app and website are already offered with varying prices that are determined by clearly stipulated cancellation policies and which are set by our accommodation partners worldwide, not by Agoda," it said in a statement.
It says it will seek further talks with the regulator and may take legal action.
