Are Travel Agents Responsible For Refunds?

Many people who cancelled their holiday due to the SARS-CoV-19 pandemic were surprised to discover that they had to pay $300 in cancellation fees.

Many of the terms and conditions that apply to third-party booking sites and travel agents are subject to Australian Consumer Law.

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Can you get your money back from your travel agent?

If you're worried about getting on a plane due to travel bans or COVID-19, talk to your travel agent about arranging alternative options.

Unfortunately, there are usually no refunds or credits available for people who have cancelled their holiday due to a travel provider's cancellation.

Due to the international travel bans imposed by SARS-CoV-19, it is now impossible for tour operators and airlines to provide pre-arranged flights and accommodation.

The ACCC's guidelines suggest that if your holiday was cancelled due to travel restrictions, you may be entitled to a refund or a credit voucher.

Different states have their own consumer affairs bodies that can help consumers with their frustrating contracts.

Your travel contract may contain a force majeure clause that explains how events outside their control can affect the services that you paid for.

Getting your money back from third-party booking sites

Online booking sites are different from traditional brick-and-mortar agencies. They have terms and conditions that are equally applicable to both.

Travel agents are often depicted with images of Greek islands on their walls. These days, you can interact with them through booking sites like Expedia and Booking.com.

If you booked through a third-party site, do not hesitate to cancel the deal even if the supplier doesn't deliver the goods or services you expected.

Can travel agents keep your deposit?

The Australian Competition and Consumer Commission advises against putting down more than 10%.

We paid a deposit for a trip to Russia. If we fail to pay the balance, our travel agent will cancel the deal and forfeit our deposit of $1300.

Can travel agents charge cancellation fees?

After the ACCC pressured Flight Centre to stop charging cancellation fees, the company stopped doing so. However, they still pass on the cost of your airline.

Due to the fees involved, Flight Centre's cancellation policy usually charged a $300 fee. It could quickly multiply if two people booked together.

A reasonable fee should be stated in the terms and conditions of the travel agent. It should also reflect the expenses associated with processing refunds or credit vouchers.

Flight Centre is reportedly charging a $300 cancellation fee. It's allegedly because the agency recoups the costs of arranging the travel.

The company did not provide a fixed fee for cancellation. However, the application of a fee regardless of the circumstances could have caused the fee to exceed the reasonable costs of doing so.

Can travel agents keep your money as a credit voucher?

The ACCC says that consumer guarantees may not apply to cancelled travel bans.

If the travel provider says they won't return your money, then the agent can keep the money as a credit voucher.

If a travel agent has received a refund from a provider, it's expected that the money will be returned to you as quickly as possible.

With the outbreak of the coronavirus, travel agents are now offering rebooking or a credit voucher to customers. The Australian Competition and Consumer Commission advises that these are only available under the terms and conditions of the business.

Related: Can I Take Medical Equipment On A Plane?

Credit voucher expirations

If the travel bans are extended, the expiration date of the credit card should also be extended.

Although the COVID-19 travel bans are not yet over, many people may be worried that they can still use their credit cards before their expiration date.

How long will it take to get a refund?

If you can't afford to buy a holiday, take a credit card or rebook it. It's a better option than waiting for approval.

Usually, it takes about 12 weeks for refunds to be processed. However, in certain circumstances, it can take even longer.

Everyone in Australia is thinking about their holiday plans as the travel industry has unprecedented workloads.

What to do if your travel agent goes broke?

Unfortunately, there are still times when travel agents go bankrupt. If you booked through a travel agent, then your service should still be valid even if the agency went broke. However, if the agent failed to transfer the money to the provider(s), your booking may be affected.

If you can't process a credit card chargeback due to the agent's financial difficulties, you should contact the administrator of the travel agency to get your money back.

Be careful with cancelled bookings made by a travel agent that went broke.