Australian Escapes says it’s “back in business” after entering voluntary administration earlier this month. But are they fully compensating their existing customers?
The online discounted travel company folded on 9 March, leaving some 15,000 holidaymakers unsure about their travel plans and the money they’d already paid towards forward bookings.
At the time of the collapse, the Southport-based company said it was “highly unlikely” members would get their money back and it wasn’t sure of the impact to travellers, The Gold Coast Bulletin reported.
However, as of 29 March, the business started trading again as a “new holiday and travel club enterprise” and promised to “honour all promotional vouchers and existing memberships including getaway cash points and free flights vouchers”.
In an online statement, the company said thanks to the efforts of Groupon and Our Deal, it is helping customers affected by the closure.
“The new business of Australian Escapes Holiday & Travel Club, now based in Fortitude Valley, Brisbane commenced trading on 29 March 2016 and will honour all promotional (deposit) vouchers and existing memberships including Getaway Cash points and Free Flights Vouchers.”
Australian Escapes
“There is no need to pay any money for membership renewal. You don’t have to do anything, your membership will carry over along with all benefits and will be extended for two years at no charge. Updated membership details will be sent to you by 30 April.
“The new team is building a more efficient business. We ask for your continued patience over the next few weeks. You will be rewarded with bigger holiday savings, lower membership fees, and better service.
Despite the positive turnaround, the Q&A section on the Australian Escapes website says a “handful of customers” have been affected, mainly those who made direct deposits and BPays, as have “some suppliers”.
“Since the AccomCorp Pty Ltd closure we have been helping numerous customers to work out whether their holiday suppliers had been paid; to get credit card charge-backs and write letters of demand to the administrator, to minimise fall-out from these events,” the answer read.
“As a result, only a handful of customers are affected (direct deposits and BPays) along with some suppliers. Thank you to Groupon and Our Deal for their tremendous assistance.
“There are sufficient funds in the customer deposits bank (trust) account that is clearly customers’ money held on trust, and that would end all customer issues, but the AccomCorp administrators Ernst & Young are not providing refunds at this time. We are fighting that situation and we have every chance of success.”
Meanwhile, TravelManagers’ Chairman, Barry Mayo, said while the company’s return is a positive step, it doesn’t erase the “negative publicity” over the last two weeks.
He said it’s important to know the views of individual state governments in regards to the “increasing number of travel agency collapses and resulting consumer losses” since the collapse of the TCF.
“If nothing else, the significant number of Australian consumers that have incurred losses as a direct result of eight reported collapses since May 2015 prove consumer protection against a minority of travel agent insolvencies is clearly an issue.”
Barry Mayo, TravelManagers Chairman
Mayo highlights that the travel industry as a whole needs to be concerned with the declining consumer confidence in travel agents that grows with each negative media report.
