Gold Coast pensioner Susan Smith out of pocket $5500 after APT Travel takes 30pc cut from refund as ‘unrecoverable costs’

A Gold Coast pensioner is crying foul after her travel company held back one third of her cruise ship refund as “irrecoverable costs”. HAVE YOU BEEN STUNG BY A TRAVEL COMPANY?

A GOLD Coast pensioner is crying foul after her travel company held back a third of her cruise ship refund as “irrecoverable costs”.

Last year Susan Smith, of Palm Beach, and a friend booked a European river cruise from Amsterdam to Budapest for April this year, cancelled in the wake of the coronavirus outbreak.

It was booked via Flight Centre with a company called Travel Marvel, part of the APT Travel Group.

The total cost, including flights with Singapore ­Airlines, was $17,700.

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Ms Smith said they were initially offered the equivalent of 120 per cent of what they paid in travel credit expiring in 2022 but they became nervous about the long-term impact of COVID and asked for a cash refund.

Out of $17,700 they were offered a refund of $12,200, she said.

Palm Beach resident Susan Smith. Picture: Tertius Pickard

More than 30 per cent was withheld on the basis of “irrecoverable costs”, but these have not been disclosed by Travel Marvel.

Ms Smith said they repeatedly asked what the irrecoverable costs were.

“Eventually they got back to us and said one part was ‘irrecoverable distribution costs’ and another part was ‘irrecoverable third party supplier costs’. That is as far as they will tell us. We have no idea why we are paying their costs when we got nothing. We have no trip, nothing out it,” she said.

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Ms Smith said she was “fair-minded” and understood there were costs the company could not absorb.

“What doesn’t seem fair is they keep a third of it in cancellation costs. That’s ludicrous.”

Consumer advocate Adam Glezer, of Facebook group Travel Industry Issues – The Need for Change for Australians, said the ACCC’s best practice guidelines state an itemised breakdown justifying the amount charged or retained should be provided by operators on request.

“We need legislation around this so we can put penalties in place for companies that don’t abide by it,” Mr Glezer said. “If there are no penalties in place there are no consequences behind a company not adhering to best practice.”

A spokeswoman for APT Travel Group said it could not discuss specific bookings. Pictured is the APT cruise ship Queen Eleganza.

He said it was “100 per cent” right of a customer to know how their money was spent.

“In her situation (Susan Smith) she is a pensioner and $5500 is a lot of money to anyone let alone a pensioner, and not knowing where the money is makes it a more stressful situation.”

Mr Glezer urged people in a similar situation to join his Facebook group.

A spokeswoman for APT Travel Group said it could not discuss specific bookings but all customers impacted by cancellations due to COVID-19 had been offered credits for the full value of the travel.

This was valid through to 2022 and transferable to family or friends.

“For those guests preferring a refund, the amount is less irrecoverable third-party costs and overheads, as outlined in our standard terms and conditions,” the spokeswoman said.