Covid-19: Pressure for reform as travellers face pain
Loosening lockdown restrictions are reviving the travel dreams of many Australians, but the fine printof travel credits issued since the start of the pandemic could turn them into nightmares.
Loosening lockdown restrictions are reviving the travel dreams of many Australians, but the fine print of mountains of travel credits issued since the start of the pandemic could turn them into nightmares.
“You have more rights with a $30 gift card than you do for thousands of dollars in travel credits,” said Erin Turner, a director with consumer advocacy group Choice.
In July, the organisation released a report that laid out key issues consumers face with the travel and tourism sector, and a comprehensive plan for reform.
“These issues existed well before Covid, particularly issues around the quality of customer service from big companies, which should do better,” Ms Turner said. “Covid exposed problems that should have been dealt with long ago.”
Choice argues reform is “technically simple” and urgent. “People are going to be experiencing issues from October 2021,” Ms Turner said. “We want reform that would see travel vouchers have exactly the same protections as gift cards in Australia. If you have a travel voucher or a credit, you should be able to use it like cash and shouldn’t be discriminated against, compared to say someone paying for a new booking.”
Last year, there was “a lot of confusion and frustration from consumers being offered credits rather than refunds” for travel that they simply could not take, Ms Turner said. The Delta variant dealt Australia a new swath of cancellation credits, often for travel that had already been rebooked at least once.
Ms Turner said Choice was expecting “a lot of complaints about the usability of travel credits and vouchers” as domestic travel reopens. International is a whole other can of worms.
A representative of the Australian Competition & Consumer Commission said: “We encourage consumers with approaching expiry dates to contact the travel provider and request an extension of the expiry date where their circumstances are such that they will be unable to use it given the Covid-19 travel restrictions.”
Travel agents copped some flack in the Choice report, but Tom Manwaring, executive chairman of the Australian Federation of Travel Agents, pointed out his industry worked to recover $8bn in refunds and credits for clients, often losing their commission and affecting the cancellations without payment from thwarted travellers.
He said people with credits could pay a trusted agent a small fee to help them turn convoluted credits into travel. “It’s a matter of planning an itinerary to make sure you get full use of those credits,” Mr Manwaring said.
Choice will continue its campaign. “If you have an issue with a credit, please tell Choice because we’re looking for cases,” Ms Turner said. “If you are faced with an expiry date that’s unfair and you haven’t been able to travel or spend the full amount, talk to the provider.”