Hundreds of holidaymakers in limbo as travel company cancels trips

Lead

Hundreds of travellers are facing uncertainty after Melbourne-based travel company AVG Travels collapsed, with liquidators appointed and tours cancelled or placed 'under review' just days before departure. The company, known for heavily discounted international package holidays, has suspended operations, leaving customers to seek refunds and answers.

According to multiple reports from Australia's public broadcaster, ABC, insolvency firm McGrathNicol has been appointed as liquidator and has taken control of the company's affairs, undertaking an urgent review of its financial position to determine the best course of action for stakeholders. The company's office in St Kilda, Melbourne, was closed to customers, with a note advising of the liquidation.

Coverage Comparison

ABC's reporting has been consistent across its articles, emphasizing the customer impact and the company's collapse. All reports note that more than 100 customers have contacted the broadcaster since the issue first came to light, and a Facebook support group has grown to over 860 members. Reports also highlight that the company's tours to destinations including China, Sri Lanka, and South America have been affected, with some travellers being offered alternative itineraries or credit vouchers, while others are still awaiting refunds.

One report specifically quotes the Council of Australian Tour Operators (CATO) as having suspended AVG Travels' membership following the cancellations, and notes that the company's accreditation with the Australian Travel Industry Association (ATIA) was cancelled in August 2022 for failing to meet 'financial and ethical standards'. Another report quotes the Australian Competition and Consumer Commission (ACCC) as offering advice to affected customers, reminding them of their rights under the Australian Consumer Law.

Key Claims

• According to ABC, AVG Travels has collapsed and liquidators have been appointed, with McGrathNicol assuming control of the company's operations.
• The company cancelled tours or placed them 'under review' just days before departure, with some customers saying they were left in the dark about their bookings. Over a dozen tour packages have been affected, with many to China, per ABC reports.
• More than 100 customers have contacted the ABC about their disrupted tours, and a Facebook support group for affected customers has amassed over 860 members, as reported by ABC.
• The Council of Australian Tour Operators (CATO) has suspended AVG Travels' membership, according to a statement quoted by ABC. The company's membership with the Australian Travel Industry Association (ATIA) was cancelled in August 2022 for failing to meet 'financial and ethical standards'.
• The Australian Competition and Consumer Commission (ACCC) has offered advice to affected customers, stating that consumers have rights under the Australian Consumer Law if a travel service is delayed or cancelled, as reported by ABC.

Perspectives

Customers affected by the collapse are expressing frustration and stress, with some having paid thousands of dollars for trips that may not proceed. Anne Miller, a Geelong resident, told ABC she paid $17,000 for a 30-day South America tour and was unable to get confirmation of details before departure. Anthony Sheely, a Canberra resident, said he only received flight confirmation 24 hours before departure and his China tour was cancelled, though he was later offered an alternative itinerary.

The company, in a statement reported by ABC, said it was 'engaging with all affected travellers to provide fair and appropriate resolutions' and remained 'fully operational', but later suspended operations upon liquidation. Industry bodies have responded swiftly, with CATO suspending AVG's accreditation and the ACCC reminding consumers of their rights.

As the liquidation process unfolds, affected travellers are advised to contact the liquidator and seek advice from the ACCC or other consumer protection agencies.