EXCLUSIVE: Does the travel industry need to do more to weed out scammers?

EXCLUSIVE: Does the travel industry need to do more to weed out scammers?
Sofia Geraghty
By Sofia Geraghty


The travel industry was making the headlines for all the wrong reasons this week.

In scenes reminiscent of NCIS, armed and helmeted police officers were videoed descending on a small unit in the Sydney south-eastern suburb of Kingsgrove.

The person they were looking for was not a drug dealer or a gangland honcho, it was a travel agent.

Sydney-based Zahra Rachid had been making headlines after she was arrested and charged for swindling her travel clients out of hundreds of thousands of dollars. The heart-broken victims spoke to Nine’s A Current Affair revealing they were missing out on once-in-a-lifetime trips, such as a family reunion in Greece, because Rachid had failed to book the trip and gave them fake itineraries instead.

Does the travel industry need more regulation

Following the news, Travel Weekly asks: Does the industry need to do more to self-regulate and protect itself from those who are bent on destroying its reputation?

MTA travel agent and NLP mindset coach Susan Barton certainly thinks so.

“Anyone could come along and set up a tour for their friends and make money,” she tells Travel Weekly. “Before all of this, we had the travel compensation fund – the TCF. It was very regulated.”

The TFC – which required agents to put money in a government-legislated fund to protect consumers if the operator or agent failed – was closed in 2014. The fund has been replaced with a series of insurance options for the prospective traveller; one of these is ‘end provider insurance’.

Speaking of Rachid, Barton said “I am not surprised that we have got this huge gap now, because that will attract people who think they can make an easy buck and then leave. It needs regulation.

Susan Barton.

“I find it very scary and it’s something I’m educating my clients on all the time. When they are looking at a deal – who is the person they’re booking with? Who are they handing their money over to?”

Consumer champion Adam Glezer who regularly appears on news outlets such as news.com.au, agreed with Barton’s sentiment, adding that the lack of regulation in travel leads to bad behaviour.

“I was not surprised. I’ve certainly dealt with several situations where a travel agent has deliberately gone and tried to rip off my clients. It’s just that this one got caught,” he said.

“I do get more travel complaints than any other industry and that’s because there are a lot of underlying issues. I have been strongly advocating for regulation in this industry for several years.”

Does the industry need tighter regulation?

Glezer says it is shocking that agents are not required to keep trust accounts given the amount of capital they hold.

“How travel agents do not require trust accounts is beyond comprehension,” he says. “Lawyers require trust accounts, real estate agents require trust accounts – to protect client funds and keep them separate from their own. However, travel agents can do whatever they like with it.

“Where is the money going? What gives them the right to spend money that is not theirs? It’s earmarked for a third party.”

Another issue the industry faces is a lack of transparency, he says.

“There are regularly several third parties involved in the transaction that are not disclosed to the consumer.”

Not disclosing markups is also a “major issue” he said, adding this allows “for unethical agents to take advantage of the elderly and vulnerable”.

Separating the wheat from the chaff

Glezer adds that there are many incredible agents doing the right thing and says they are hurt by bad actors.

Consumer champion Adam Glezer.

“During COVID, I know a lot of travel agents that were extremely ethical in the most difficult of times. However, the ones that were either not thinking of the customer – or deliberately trying to rip them off – tarnish the industry’s name.

“The ones that do the right thing have a genuine care for their customers. They do everything they can to look after their clients to the best of their ability. Whereas the ones that do the wrong things are just trying to find ways of holding on to customers funds; using excuses not to refund at every opportunity.”

Whilst bad actors do certainly exist in the industry, travel agent Andrew Sullivan, who is director at The Don’t Forget Travel Group, disagrees that they make the whole industry look bad and says they largely out themselves.

a man

Andrew Sullivan.

“I don’t think it reflects badly on the whole industry. I certainly believe that you should be a member of ATIA and part of the ATAS accreditation. I’m a big believer in that,” he said.

“I don’t think there should be any more regulations or it depends on what those regulations are. I mean, I don’t really want to go back to the old days of the travel compensation fund.

“Yes, the barriers to entry are a lot lower in travel now, but I think if you’re not any good you’re not going to be in the industry for very long because there’s so many options to choose from. The bad ones will get weeded out.

“It’s unfortunate that she did take their money, but she’s basically a criminal. She’s not a travel agent.”

Is compulsory accreditation the answer?

Whilst accreditation is not compulsory, Sullivan says any potential agent should sign up and be ATAS-accredited.

“I think everyone should be accredited, then if a customer sees you are not accredited they will start to ask questions,” he says.

Following Rachid’s arrest, ATIA released a statement confirming that Rachid had her ATIA accreditation as it was cancelled by the body in 2019.

“For us, that actually shows that the scheme is actually doing its job,” said ATIA CEO Dean Long. “It’s looking at businesses, identifying concerns, and when they are, removing them from the scheme and making sure that when you do see that they’re ATAS accredited, you know that you’re dealing with businesses that have continually abiding by the laws, and also meeting the best business practices that the travel industry has.”

Long says that state consumer affairs departments both support and share information regarding the ATAS accreditation, plus about 160,000 people visit the ATAS.com.au site each year, in addition to the thousands of calls ATIA receives a year from consumers checking people’s accreditation status.

“It’s not common in the industry,” he says of the agents’ alleged bad behaviour. “I think that’s the good thing. Where it does happen, it’s really disappointing, it’s not the best look for the industry, it doesn’t put the industry in the best positioning, which is one of the reasons why we need to be dealing and reinforcing that we only work with those people that are ATAS accredited, and as an industry, we work together to ensure that everyone who is a good business is ATAS accredited because that is the point of difference.

“That’s what the consumer needs to see to have continued confidence in our critical travel sector.”

If you have any views or news on the issue, please email sofia@travelweekly.com.au

Latest News

  • Food & Beverage
  • Hotels

TV chef Manu Feildel tries his hand at Bistro Red Lion

Who says Sydney’s dining scene is on the ropes. Despite promising to “never, ever” open a restaurant again, TV chef Manu Feildel is now on pans at a 196-year-old pub in Sydney’s inner west. Owned by the Laundy family, the Red Lion pub will soon be home to Bistro Red Lion by Manu which will […]

  • Aviation
  • Breaking News

Bonza creditors vote to liquidate embattled low-cost carrier

Bonza’s creditors have officially moved to call time on the embattled carrier with the result of a vote today seeing the business liquidated. Administrators Hall Chadwick had hoped to either sell Bonza or find a backer to come in with a Deed of Company Arrangement, though no offers materialised in time for today’s creditor meeting, […]

  • Aviation

Scoot winter sale on economy and ScootPlus tickets

Aussies looking for their next international adventure can take advantage of Scoot’s Winter sale deals on their Economy and ScootPlus tickets to popular destinations. They are offering discounted economy flights to a range of favourite destinations, including: Athens (from $405 SYD/ $395 MEL/ $399 PER) Osaka (from $335 SYD/$325 MEL/$319 PER) Koh Samui (from $330 […]

  • Attractions

Sydney International boat show delivers four days of family fun

Families looking forward to a winter weekend adventure can take to the Sydney International Boat Show for an assortment of boating, sailing, and marine experiences from 1 to 4 August. Returning for its 55th year, the show is the highlight of the international boating events calendar and a popular day for the entire family. Guests […]

  • Cruise

Aqua Expeditions partners with the Flight Centre Travel Group as preferred supplier

Luxury small-ship cruise line, Aqua Expeditions, has announced a new partnership with the Flight Centre Travel Group (FCTG), becoming a preferred supplier of the travel agency network. The partnership will allow guests to book Aqua Expeditions’ luxury cruises through FCTG’s network of travel agencies including their flagship brand as well as their luxury-focused brands including […]

  • Hotels

DoubleTree by Hilton Hobart set to open in the second half of 2024

DoubleTree by Hilton Hobart is set to open in the second half of 2024 within walking distance to the CBD, waterfront and Salamanca Place. The new hotel promises to be a standout addition to the city’s hospitality landscape. The new DoubleTree by Hilton Hobart, together with Fragrance Group Limited, will offer guests a blend of […]

  • Cruise

Celestyal expands in the Arabian Gulf with a second ship from 2025

Celestyal has announced new programs for 2025, 2026 and early 2027 including an expansion into the Arabian Gulf during the winter season which will see both ships cruising year-round for the first time.   The cruise line’s newest ship, Celestyal Discovery, will chase the sun to the Arabian Gulf for its first winter season from 2025, […]

  • Food & Beverage
  • Hotels

Vietnam’s Alma Resort welcomes executive chef Alan Rion

Alan Rion, a seasoned chef with three decades’ experience working for some of the world’s leading restaurants and hotels in Asia, Europe, Australia, the Middle East, United States and Canada has been named Alma Resort’s executive chef. French national Rion has joined the 30-hectare resort overlooking Long Beach on Vietnam’s scenic Cam Ranh peninsula to […]

  • Family

Holidaying families drop a rung in bid to ease cost of living pressures

Prevailing financial stress and work demands mean people are looking for more cost-effective, flexible holiday options these school holidays, according to research conducted on behalf of BIG4 Holiday Parks. The research found that 76 per cent of Australians cite financial constraints as the primary limitation currently preventing them from travelling. More than half (54 per […]

  • Hotels

Chief executive officer Dave Baswal to depart Ovolo Hotels  

Ovolo hotels have announced the departure of chief executive officer Dave Baswal from his role, effective from the end of September. Baswal first joined the company in 2016, initially as director of finance & operations Australia, progressing through roles including COO and CFO, managing director, and ultimately assuming the CEO position in 2022.   During his […]

  • Attractions

SA’s almost-complete Monarto Safari Park on the market for $50m

The nearly finished luxury hotel and glamping resort inside Monarto Safari Park in South Australia has been put up for sale Jayco caravan founder Gerry Ryan with an asking price of $50 million-plus. The Australian Financial Review reports Ryan acquired the 65.66ha site, in the Murraylands region 70km from Adelaide, from Zoos South Australia in […]

  • Aviation

Avis and South African Airways announce partnership after relaunch of flights to Perth

Car rental company Avis has announced a partnership with South African Airways (SAA) following the relaunch of its Perth to Johannesburg route after a four-year hiatus. “Avis is proud to partner with SAA to provide an integrated travel experience that ensures our customers receive the highest standard of service both in the air, and on […]

  • Cruise

Crystal signs memorandum of agreement with Fincantieri

Luxury cruise experience leader, Crystal, has signed a Memorandum of Agreement with Fincantieri to construct two new, groundbreaking ships. The planned 690-passenger (based on double occupancy), 61,800-gross tonne ship will feature a host of amenities and innovative designs that ensure unparalleled comfort and indulgence for guests. Ship designs will be led by architectural firms, Studio […]