An AVG Travels insider has revealed how the tour operator, now in liquidation, pivoted from B2B to B2C after failing to competently engage with the travel trade.
“There were a lot of operational pressures and a not very good operational environment,” said the insider who was employed by the company from late 2024 to early 2025.
While it was supported by a good business-to-business portal, it became increasingly obvious that the site was costing more than was being returned, given they were not “industry people”, the insider said.
“Their attitude towards the industry was like they didn’t know how to engage with the industry,” the insider said. “That was how I knew, okay, they’re not really industry people. I’ve got to guide them and that’s why they hired me.”
As time went on, the employee felt increasingly uncomfortable about their role at the company, despite framed CATO accreditation and ABN registration hanging on the walls. It did not have ATIA accreditation.
“I personally observed a high-pressure operational environment, and then I could also see considerable customer service pressures,” the employee said.
While principal David Dao was running the show in Melbourne, his 2IC was in Vietnam.
In early 2025, the employee was called into the office with Dao admitting the company was facing increasing financial pressures and given the pivot into B2C, even more money was spent on advertising and promotion.
“At the end of day, they just didn’t want that B2B model anymore, and they couldn’t keep my role, so I had 2 weeks to pack up and leave,” the employee said, admitting that their departure was a lucky escape.
AVG Travels, which marketed heavily discounted package holidays across Asia and other destinations including Japan, Vietnam, China, Sri Lanka and the Maldives, officially entered liquidation on Tuesday after days of mounting concern, with customers reporting cancelled trips shortly before departure.
The company became known for aggressively priced flight-and-land packages, with some deals advertised at discounts of more than 70 per cent.
‘This wasn’t a travel agent’: Industry pushes back after AVG Travels collapse sparks backlash
McGrathNicol, which has been appointed liquidator, confirmed it had assumed control of AVG Travels’ affairs and was conducting an urgent review of the business.
In a further blow to affected customers, the liquidator said AVG Travels was unable to process refunds for deposits or payments made because it did not have the funds to do so. Customers were urged to contact their credit card providers.
