Man who paid $23k to Geelong travel company entering liquidation says situation is ‘gut-wrenching’

A man who paid nearly $23,000 to a Geelong-based travel company but had his plans up-ended by the Covid pandemic has called the situation “gut-wrenching”.

The federal government has come under fire for of failing to protect would-be travellers during the pandemic, with no laws requiring travel companies to provide monetary refunds.

Sydney man David Probert paid nearly $23,000 to a Geelong-based travel company, and says his 17-day South African trip, originally set for April 2020, was postponed due to the Covid-19 pandemic for the foreseeable future before the company had gone into liquidation.

According to ASIC, liquidators were appointed on December 17 after it was determined the company would be placed into liquidation and wound up.

In emails obtained by the Addy, Mr Probert asked Swagman Tours for the names of the suppliers, but was told it would not be that simple.

“I am appalled to think any business is sending people’s money away and doesn’t know who they are sending it to,” he said.

“I don’t think travel will be on the cards, my situation has changed from where I was two years ago.

“I am at the point where I think I am never going to see that money again and that is gut-wrenching.”

Treacey Dowd from Swagman Tours said once a payment is made it becomes subject to the terms and conditions.

“Booking a trip takes time but cancelling it requires the examination of every supplier’s terms and conditions at the time of booking and with each postponement,” she said.

“In general, if a refund is approved for a client it is usually in the form of credit.”

She claimed during the pandemic travel operators received limited government support and no commercial income, but were expected to maintain offices, utilities and staff while attending to “unprecedented demands for refunds”.

“When the travel industry was deregulated, everyone became vulnerable, and it is only due to this pandemic that the extent of damage has been realised,” she said.

“The industry as a whole has been decimated.”

Consumer advocate Adam Glezer is currently fighting for reforms which will give Australians certainty that when holidays are cancelled due to circumstances beyond human control, or when businesses are put into liquidation, they will be entitled to their money back.

Adam Glezer became a consumer advocate helping people to get money back from cancelled holidays during the pandemic. Picture: Wayne Taylor

“We need mandatory trust accounts to better protect Australian consumers,” he said.

“I have been dealing with people who are suicidal, terminally ill and a lot of elderly people fighting for up to $100,000.

“The pandemic has given the government enough of a warning … it is time to start protecting Australians.”

Liberal senator, Sarah Henderson said the Australian Competition and Consumer Commission (ACCC) has been engaging with travel businesses to ensure they are not misrepresenting consumers’ rights.

“Working closely with the ACCC, my office has helped to successfully resolve many travel refund disputes on behalf of local constituents,” she said.

“However, further law reform may be required.

“I am pleased that work will commence in the new year to assess the effectiveness of the Australian Consumer Law in responding the consumer issues which have arisen as a result of the pandemic.”

Originally published as Man who paid $23k to Geelong travel company entering liquidation says situation is ‘gut-wrenching’