In the aftermath of the Air Vanuatu liquidation, TravelManagers saw its Credit Card Charge Back Insurance policy in action, protecting personal travel managers (PTMs) and their clients from the risk of losses incurred from credit card chargebacks.
If a supplier fails to provide a service due to insolvency, such as the Air Vanuatu case, travel advisors who act as merchants are liable for 100 per cent of the gross charge if clients opt for a transaction refund.
TravelManagers CCO Grant Campbell said 13 PTMs had clients affected by the Air Vanuatu collapse, however, they were protected by its Credit Card Charge Back Insurance (CCCBI) policy, which has paid out more than $30,000 in claims.
“The policy has ensured we have incurred zero losses from credit card chargebacks in the wake of Air Vanuatu’s financial collapse,” he said.
With the recent news of Rex entering voluntary administration, Campbell said it’s a timely reminder of the value of consumer and agent protections.
“Without a CCCBI policy – and we believe TravelManagers is the only travel company in Australia to have this protection in place – there is little that can be done to protect against this risk,” he said.
New PTM Bianca Aarts didn’t fully appreciate the importance of consumer protections, including the CCCBI policy, until it was a necessity due to Air Vanuatu’s insolvency issues.
“Sadly, travel suppliers becoming insolvent isn’t a new thing and dealing with such a situation was my biggest fear in starting a business of my own,” she said.
“Although it hasn’t been great to have one happen within my first six months, I am so grateful TravelManagers has this protection in place.”
Her colleague, PTM Darren Christensen, concurred: “I’ve had two instances of clients’ travel plans impacted by the financial failure of well-established suppliers and in both cases, TravelManagers’ risk mitigation measures ensured my clients and I were protected from financial loss.”
Campbell said: “It’s every travel advisor’s worst nightmare to have to tell a client that their money is gone because of a supplier’s financial failure.”
“TravelManagers’ industry-leading consumer protections, which also provide protection for agent commissions, ensure that these conversations never have to happen.”
For more info, visit travelmanagers.com.au
