Australians lose money and holidays after Gold Coast discount travel company Australian Escapes goes into voluntary administration

THOUSANDS of Australians had their holidays wrecked after a Gold Coast discount travel company went bust.

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MORE than 15,000 Australians have potentially had their holidays wrecked after a Gold Coast discount travel company went bust.

Australian Escapes closed suddenly on March 9, leaving people out of pocket and without bookings for trips they believed were confirmed.

The online company offered memberships to customers in return for what it claimed were “heavily discounted resort and travel packages to over 300 resorts, hotels and holiday parks” across Australia and other parts of the world.

About 40 staff ealso found themselves redundant without warning following the announcement.

A former employee – who did not want to be named – said an Ernst and Young administrator told all staff at the Southport office last week their “employment was terminated without pay”.

“It was a shock,’’ she said.

“They left us pretty much in the lurch for bills.

“I’m searching for work to survive.”

The mum said the company had struggled with sales in the weeks prior, but she did not think it would lead to its demise.

The employee of more than six years said she was now fighting to be paid for her final week of work.

But her claims may not be paid out, with Ernst and Young administrator Justin Walsh telling the Gold Coast Bulletin the company was “unfortunately not in a position to pay wages”.

“It has insufficient funds,’’ he said.

Mr Walsh said some holidaymakers would still be able to enjoy their trips.

“Some of the luckier ones paid money (to Australian Escapes) and that money has been on-paid to hotels and airlines,’’ he said.

“They should be fine.

“But some people have paid money and it has not been on-paid.”

The Bulletin understands some travellers have been left stranded overseas, while others with upcoming trips have lost their bookings.

Mr Walsh said Australian Escapes – whose official business name is Accomcorp – had “well in excess of 15,000” members.

He said it was unlikely any “material dividend” would be paid to creditors.

“There are very little resources available to the administrator,’’ he said.

“The company doesn’t have any assets.”

The Office of Fair Trading released a statement on Monday notifying people of Australian Escapes’ collapse.

Executive director Brian Bauer urged customers of the website to independently contact their travel and accommodation providers to verify bookings had actually been made.

“Often when this type of business goes into administration, customers can find their deposits haven’t been processed through to the travel and accommodation providers,

leaving them out of pocket and the holiday experience ruined,’’ he said.

“Consumers who paid by credit card and who have established their payment has not been received by the travel and accommodation provider should contact their bank as soon as possible to see if the charges can be reversed.”

Investigations are continuing into the reason for the collapse.