JapanIf a travel agency goes bankrupt, will my payment be refunded?
Yes, if the travel agency is registered under the Travel Business Act and you paid for a package tour, your payment is protected up to ¥1.5 million per person by the Travel Agency Compensation Fund.
What the Law Says
Japan’s Travel Business Act requires licensed travel agencies to join a compensation scheme to protect customers if the agency becomes insolvent.
Under the Travel Business Act, all registered travel businesses must join the Travel Agency Compensation Fund operated by JTB Corporation. This fund protects customers who have paid for travel services that are not delivered due to the agency’s bankruptcy or suspension of business.
The law guarantees full reimbursement for pre-paid package tours (defined as trips including at least two of: transportation, accommodation, or guided services). For other travel services (e.g., single-flight bookings), compensation is capped at ¥1.5 million per person.
Customers must file a claim with the fund within 30 days after the agency’s bankruptcy is officially announced or its license is revoked.
Statutory TextA travel business operator shall join the compensation fund established pursuant to Article 57-2.
— Travel Business Act, s. 57 — Obligation to Join Compensation Fund
Statutory TextCompensation shall be paid to travelers who have suffered damage due to non-performance of travel services caused by the suspension of business or bankruptcy of the travel business operator.
— Travel Business Act, s. 57-3 — Purpose of Compensation Fund
Statutory TextThe amount of compensation shall not exceed one million five hundred thousand yen per traveler.
— Travel Business Act, s. 57-4 — Limit on Compensation Amount
What to Do
Confirm the agency is registered under the Travel Business Act (check the MLIT registry or look for the registration number on contracts/website)
Gather proof of payment (receipts, bank statements, contract) and the agency’s official bankruptcy notice
Submit a claim form to the Travel Agency Compensation Fund via JTB Corporation within 30 days of the bankruptcy announcement
Include completed application, ID copy, payment proof, and contract — submit online or by mail
Sources
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South KoreaNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.