Travellers say they have been left thousands of dollars out of pocket after an agency entered liquidation this month.
It was a surprise to travellers and to the industry last week, when Altona Meadows-owned CTS Travel was placed in the hands of Queensland liquidators.
It came after a handwritten sign was placed in the window of the retail store last week, notifying customers that the agency was simply relocating.
However, the sign has now been changed to advise those who pass by that the business was handed over to Robson, Cotter Insolvency Group.
That’s when clients started receiving letters from the appointed liquidator confirming the news of the agency’s financial situation.
One student, Paige Toner, claims that she and her boyfriend had booked around $9,000 worth of flights and accommodation through the agency, The Herald Sun reported.
Having received receipts and an itinerary, she believed her holiday was secure.
However, she claims it wasn’t until after she received the letter from liquidators that she checked the details of her booking only to find they had been cancelled.
She claims the agency had not passed on the payments. According to Ms Toner, her travel insurance will not cover the loss.
Another client, who remained anonymous, says she and her husband also paid for a trip to Disneyland with their two kids in cash. She too alleges that the money was not passed on.
The situation has created fear amongst some of the travelling public, with a few questioning the reliability of agents, while others ask the big question ‘why the TCF was removed’.
Before Travel Compensation Fund (TCF) was phased-out last year, travellers would be covered in cases that an agency or supplier failure.
However, new the ATAS scheme doesn’t offer the same level of protection.
As a result, a number of agency groups – Travel Counsellors, MTA Travel and now Magellan Travel Group – have come up with their own solutions designed to protect consumers and agents in similar situations.
However, this didn’t stop readers of the original article from commenting underneath, questioning the demise of the TCF and the reliability of agents.
Commenting below the original story in the Herald Sun, ‘David’ said:
“So, the Travel Compensation Fund, which was established to rectify these issues, has been dissolved about a year ago. The question is: Why did they choose to get rid of the Fund?”
And then there was the calm and collected ‘Tim’, who pointed out the benefits of booking through a consultant:
“Occasionally there can be an advantage with a reputable Agent on the Land component as they use providers for hotel rates which the public may have a bit of difficulty accessing.”
According to the liquidators, it could be months before customers know whether they will get back any of their money.
“When you are looking at a travel agency, physical assets are fairly limited.’’
Roland Robson
AFTA told KarryOn that it is aware that CTS has ceased trading.
The Association confirmed that former customers have been notified of liquidation and expects more detail to come to light at the creditor meeting on 22 May in Melbourne.
“Each individual booking needs to be assessed on its own merits. Factors that need to be considered include: form of payment, which supplier was booked and the timing of the booking.”
AFTA
“If a customer paid by credit card then they need to commence the charge back process by contacting the card issuer. This process will require investigation by the issuer prior to any refund.”
AFTA has also made enquiries with the Victorian Police and the Department of Justice, which are responsible for Consumer Affairs.
“When booking consumers should check what insurances their agent has in place, use a credit card where able and request information on what insurance is available to purchase for their own protection.”
