Perth couple’s $17k refund saga with Webjet

A Perth couple have been trying to get their $17,000 refunded after their European trip was cancelled due to Covid – but the company refuses.

An Aussie couple have been trying to get their $17,000 refunded for the past three years after their trip was cancelled due to Covid.

Tracey, 64, and Rodney McGrath, 68, from Perth, had booked a 21-day river cruise to Switzerland through Webjet Exclusives just before the pandemic hit.

It was something Rodney had always wanted to do following his retirement.

But due to Covid it was cancelled and the pair were offered a credit note to the same value of the trip.

Since then, the couple have made various attempts to get their money refunded but to no avail.

“Covid was no one’s fault, however, unlike Webjet, we can’t write this off against our tax. He is retired, so there isn’t an earning opportunity to replace the money,” Ms McGrath told news.com.au.

Rodney, 68 and Tracey McGrath, 64, have been locked in a three-year battle with Webjet in the hopes to get their $17,161 refunded for a holiday that was cancelled due to Covid.

Ms McGrath said their circumstances and priorities have changed and the pair wanted the money back to give to their daughter who is hoping to purchase a home.

A spokesperson for the online travel provider told news.com.au that one of the terms and conditions of Webjet Exclusives did relate to the non-refundability of the product purchased, which differs from a flight-only booking.

“In 2020 gift cards were issued to the full value for all customers for monies paid to Webjet with relation to the holidays that were cancelled due to the border closures that took place and the inability for these holidays to continue,” the spokesperson said.

However, Ms McGrath said she doesn’t want to be confined to choosing a holiday with the third party provider, which recently posted an underlying profit of almost of $135 million in the 12 months to the end of March, according to the Sydney Morning Herald.

“When we booked that holiday it was something we wanted (at the time). If we get our money back, we are free and clear to get anything we want in terms of a holiday.

“But if we accept a gift card, we only get what they are willing to offer.”

Ms McGrath understands they’re not the only ones that have had a holiday cancelled because of Covid, but said when you book through a provider like Webjet Exclusives, it’s because you’re looking for confidence in your travel.

“[And] now I realise that if I had not booked through Webjet I would have probably got my money back already,” she added.

Ms McGrath said at first they let it go as the world was “topsy turvy” and everyone was “suffering”.

“So that’s what we did, we took a step back,” she said.

But in 2020, they periodically reached out again, but with no luck for a refund.

“We’re not destitute which is what we would have to prove if we want Webjet to refund our money,” she said.

“Nor are we in such frail health that we are medically unable to travel overseas, which is the other condition we would need to prove in order to ‘qualify’ for a refund.

The pair were issued a credit note, but said they are entitled to a money refund as the funds belong to them and not the third party company.

“If Webjet is willing to offer largesse under such conditions, then what about the fact that they are profiting from our money yet have provided no service.”

The spokesperson said it offered gift cards following advice from the Australian Competition and Consumer Commission, noting that “terms and conditions will vary between travel providers, and in some cases, consumers might not be entitled to a full, or any, refund of their booking”.

“Some terms and conditions may provide for the ability to re-book, or credit notes, rather than refunds for cancelled bookings.

“As we have communicated to these customers, despite the product being non-refundable, for customers experiencing hardship such as ill-health where they can no longer travel or where they may have been made redundant, we have and continue to work with customers to find an alternative remedy,” the Webjet spokesperson said.

A spokesperson for Webjet Exclusives told news.com.au the terms and conditions of the trip always outlined it was non-refundable.

They also added that gift cards issued had a three-year validity expiring in April 2023.

“However, they were extended a further year last year, allowing these gift cards to be redeemed through to April 2024, with travel permitted through to 2025 which as we understand is one of if not the most flexible travel credit provided in Australia.”

Adam Glezer of Consumer Champion who has been advocating on the couple’s behalf described the pair’s treatment as a “disgrace”.

He said while Webjet can refuse to refund due to “extremely weak” consumer protection laws in Australia when it comes to situations such as these, “on an ethical basis, it’s disgraceful”.

“Morally, they should absolutely be entitled to a cash refund,” Mr Glezer told news.com.au.

“Just because they are not sick or experiencing hardship shouldn’t be a reason for them not to get their money back.

“How can you trust a third party with your money if they are not going to do the right thing by you and give it back to you when they cannot provide the service you purchased.”

Adam Glezer, from Consumer Champion, has been advocating on the couple’s behalf.

Mr Glezer has been advocating for stricter consumer protection laws in Australia, similar to the UK, for years.

“In the UK, customers have legal protection via ‘The Package Travel and Linked Arrangements Regulations’, where if you purchase package travel and it is cancelled for any reason, you are legally entitled to a full refund within 14 days,” he explained.

“In this country customers are fed to wolves.”

Mr Glezer said the government needs to step up and put stricter measures in place to prevent situations like this from occurring in the future.

“Covid should have acted as a wake-up call. However, federal government has failed Australian consumers by failing to legislate the right to a refund,” he said.

“They have to make consumers a priority and stop ignoring the lack of protection that a significant number of companies exploited over Covid.”

The Webjet spokesperson said the gift cards can be transferred, on-sold or broken down into smaller values if required.

“We can also if required extend further the gift card if the five-year period to utilise the gift card is not sufficient.”

But Mr Glezer said this isn’t good enough.

“Gift cards are not a refund – it’s not Webjet’s money — what they are trying to do is hold money that is not theirs and they should have no right to.”