Consumers warned as industry reform put to test

Consumers warned as industry reform put to test
By admin


The deregulated travel industry has already come up against its first challenge with the collapse of Victoria’s Australian Specialty Tours.

The company, which went into liquidation on August 15, has left an “unknown” number of consumers out of pocket,, according to consumer watchdog Choice.

“The collapse of Australian Specialty Tours is the first test for our now deregulated travel industry,” Choice spokesperson Tom Godfrey said.

“Only consumers who bought products before July 1 will be able to get compensation for their losses from the Travel Compensation Fund.”

Those that paid via credit card may also be eligible for a chargeback from their bank. However, others will need to contact their travel insurance provider if they have one. But Choice warned that this measure could be a “lost cause” as none of the policies compared in its latest travel insurance review protect consumers in the event of travel agent collapse.

“Now that the Travel Compensation Fund is being wound down, consumers need to take extra steps to make sure they are protected,” Godfrey said.

He advised the public to “do their research” in order to find a reputable agent, with evidence of ATAS accreditation a good indication that they meet professional standards.

“Consumers should ask their agent what steps they have taken to protect their client’s funds,” he said. “There is now a range of insurance products that agents can take out to protect your money.”

But he warned of the necessity to read the product disclosure statement of those insurance products carefully to ensure they provide adequate protection.

Meanwhile, Australian Federation of Travel Agents chief executive Jayson Westbury told Travel Today that Choice’s comments were reassuring.

“I’m pleased to see that Choice is on message with the Pack some peace of mind campaign in terms of the way the industry will operate in the future,” he said. “Over time, it will help consumers think more carefully about who they book their travel with.”

While he confirmed there is still no firm indication about the financial impact of the Australian Specialty Tours collapse, he did reveal that AFTA has to date received only two phone calls from concerned consumers.

“We made recommendations for them to seek a chargeback from their credit card company if applicable, but those affected by having paid cash are advised to commence proceedings with a solicitor under Australian Consumer Law,” he said.

“It’s the first collapse since deregulation so it’s bound to be a bit of a learning curve for everyone to see where the calls go and how it is managed.”

The government yesterday launched the Pack some peace of mind campaign which aims to grow awareness of the deregulated state of play in the travel industry among consumers while highlighting the benefits of booking with an ATAS-accredited agent.

AFTA will also undertake its own push to drive the ATAS message to consumers, but this will commence once the government campaign has come to an end, Westbury revealed.

The latest tally of ATAS accredited locations is now just short of 2000, he added. There is currently an 11 business day backlog in processing applications, but this is expected to reduce with time.

Latest News

  • Hotels

Groupe Barriere appoints La Collection as ANZ representative of its Fouquet’s properties

Groupe Barriere has announced it has appointed La Collection as the exclusive representative for Australia and New Zealand of its two flagship Fouquet’s properties. This partnership brings together La Collection’s dedication to exceptional boutique experiences with the legendary heritage of the Fouquet’s brand. Groupe Barriere, a name synonymous with French luxury and the art of […]

  • Conferences
  • First Nations
  • Tourism

Indigenous tourism drives economic growth: The World Travel & Tourism Council finds

Indigenous tourism is projected to contribute US$67 billion ($AU100 billion) to the global economy by 2034, a landmark World Travel & Tourism Council has found. This economic boom is fuelled by increasing demand for authentic cultural experiences, in countries such as Australia, Canada and the United States, among others. The report showcases the sector’s role […]

  • Conferences
  • Tour Operators
  • Tourism

Perth’s Matagarup Zip+Climb becomes world’s first member of WTTC’s ‘Together in Travel’ for SMEs

Perth’s Matagarup Zip+Climb co-founder Ryan Mossny has been named the world’s first member of the World Travel & Tourism Council’s new ‘Together in Travel’ program for Small and Medium Enterprises (SME). Announced at the 2024 Global Summit in Perth (Boorloo), today the ‘Together in Travel’ program is a unique initiative aimed at providing support and […]