Travel tops list of consumers’ COVID complaints

The consumer watchdog has seen a huge surge in complaints since the start of the yearndemic, with most generated by just one industry.

The travel sector has been the most complained about industry in the COVID-19 crisis, with the consumer watchdog seeing a 500 per cent surge in gripes.

Travel has topped the list of COVID-related complaints in 2020 with the consumer watchdog reporting a 500 per cent surge in gripes.

The Australian Competition and Consumer Commission report on the impact of COVID-19 on consumers and fair trading, revealed 24,210 travel-related complaints had been received in the year to October, up from 4052 the previous year.

The report observed that the huge increase was “unsurprising, given the immense impact that domestic and international travel restrictions and the subsequent cancellation of travel bookings, have had on both consumers and travel businesses”.

It noted that the situation had been complicated further by the fact most insurance policies excluded cancellations resulting from the pandemic.

In an effort to address the issues, an ACCC task force engaged directly with around 50 travel businesses to “effect behavioural change on issues impacting hundreds of thousands of Australian consumers”.

“In many instances this engagement resulted in travel businesses changing their approach to ensure they were offering consumers refunds or other remedies for cancelled travel in accordance with their entitlements under the terms and conditions of their contract,” said the report.

“The ACCC recognises that many businesses in the travel sector have assisted consumers by implementing hardship policies and providing refunds for those consumers in exceptional circumstances of health or financial hardship.

“Unfortunately, other businesses have been less willing to accommodate hardship claims.”

The watchdog acknowledged that a lot of issues continued to persist due to the complexity of some travel bookings, and ongoing travel restrictions.

“The ACCC also remains concerned about the approaching expiration date of some credit vouchers provided to consumers for cancelled bookings earlier in the year,” the report said.

“The ACCC’s best practice guidance for the travel industry sets out that businesses should be prepared to extend any credit note expiry period to take into account the extension of any travel restrictions, to allow consumers a reasonable period in which to use the credit after COVID-19 restrictions are lifted, or to otherwise receive a refund.”

Other industries that generated an increased number of complaints to the ACCC, included the fitness and gym sector, with some businesses continuing to deduct fees from members even in the closure period.

Ticketholders for events such as concerts cancelled or postponed by COVID-19, also registered a significant number of complaints with the ACCC due to difficulty obtaining refunds.

The watchdog also reported a wave of complaints about price hikes for things like hand sanitiser, toilet paper, gloves and masks, as well as fuel.

“The ACCC cannot prevent or take action to stop excessive pricing, and it has no role in setting prices,” the report said.