TCF comes out fighting for its future

TCF comes out fighting for its future
By admin


The Travel Compensation Fund has come out fighting as it warned that scrapping the consumer refund scheme and eliminating travel agent licensing could come back to haunt the industry.

While stressing that its submission to the draft Travel Industry Transition Plan was not intended to “suggest or advocate” a decision, the 22-page document spells out what it believes are significant risks in the event of the TCF being axed.

It warned that consumer confidence in the industry may be damaged when a company collapses in a post-TCF world and suggested existing safeguards under consumer protection laws are “impractical, unavailable or too costly for individual consumers”.

“Under the proposed plan, consumers will need to take legal action individually or within a class action to recover lost funds which will be costly, time consuming and unlikely to provide them with financial relief,” the TCF said. “Such legal actions are unlikely to be available, or pointless where the travel agent is bankrupt or otherwise insolvent.”

It argued that if a wholesaler collapses and there is no TCF to pick up the pieces, consumers could well hold the retailer responsible for passing on money which is subsequently lost.

Brand or goodwill damage could result for the agent, the TCF said.

A further damaging implication could see consumers prefer to deal with larger, better known agents who the public perceive as being more financially stable.

The TCF also rejected the claim that payments by credit card is increasing and therefore protecting consumers.

“The use of credit cards is not as common for travel purchases in Australia as may be thought,” it said. “Most recent TCF experience with claims is that credit card purchases are declining in favour of other means of payment.”

Later in its submission, the TCF tackled one of the scheme’s fundamental flaws – that its remit is not wide enough. That could be solved if more travel businesses were subject to licensing and compulsory TCF participation.

While "the TCF cannot unilaterally extend its own coverage", that could be achieved through legilsation.

Should the reform proposals be ratified, the TCF insisted that its $31 million reserves continue to be used to compensate consumers “until the best/alternative scheme is actually implemented”.

In addition, the cash should fund a travel industry ombudsman and to establish a travel consumer advocacy centre which could provide education, advice and help in matters of travel consumer issues.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • News
  • Tour Operators

CATO Touring Academy doubles achievements

The Council of Australian Tour Operators (CATO) Touring Academy has surpassed all expectations, with over 1,000 enrolments, 11,000 course completions, and more than 600 agents earning their CATO Touring Certification since its mid-2024 launch. As the travel industry gears up for another dynamic year, the CATO Touring Academy is empowering travel professionals to elevate their […]

  • Destinations
  • Tour Operators

Mat McLachlan Battlefield Tours advises final call for Anzac Day 2025

Mat McLachlan Battlefield Tours has advised that the final call for Anzac Day 2025 is on 31 January 2025 with pre-registration also available for Anzac Day 2026. Travellers are encouraged to book their spot for either the 10-day Anzac Day on the Western Front departing on 19 April from Paris or the 8-day Anzac Day […]

  • Destinations
  • Hotels

Two destinations to visit in Mexico for Valentine’s Day

Valentine’s Day is quickly approaching and here are two romantic getaway destinations in Mexico to make any traveller’s day with their special someone even better. Casona Roma Norte, Mexico City This Valentine’s Day is the perfect time to visit Mexico City, as the streets come alive with roses, heartfelt gifts, and the city basks in […]