Holidays Booked in Oct - Should I Be Worried The Travel Agent Go Bust?

Yehyeh on 20/04/2020 - 12:05

Not sure if other people who booked a holiday would have this worry -

We have got a March holiday booked late last year, paid $11k for airfare and accommodation package. Since the situation wasn't looking too good we have called the agent to postpone it to October, paid the airline and agent change fees another $1k+.

Now I start to get a bit worried - I'm quite happy to go on the holidays still, if everything is cleared by then, or even, if it needs to be pushed further til next year…I'm happy for the agent to keep the funds for now… however what would happen if during this period, the travel agent goes bankrupt? Does anyone know if the government protects consumers in anyway on these sorts of things?

Since our travel insurance will not cover for pandemic/contagious disease, I'm thinking if the agent gone bust under these circumstances it would also not be covered.

Travel

Comments

  • CyberMurning on 20/04/2020 - 12:07
    +1

    worry of course. oct is just around the corner

  • Ocker on 20/04/2020 - 12:12

    Travel to where?

    • Yehyeh on 20/04/2020 - 12:21
      +1

      Asia…

  • waterbottled on 20/04/2020 - 12:14

    Nope, no protection for you if travel agent goes bust. You along with all the other agents' customers will be classified as an unsecured creditor and you'll have to wait in line to get your refund (if there's any money left once agent pays off their secured creditors).

    • Yehyeh on 20/04/2020 - 12:22

      Hmm… so I'm inclined to go to the agent now and ask them to cancel… but certainly would lost the extra $1k paid and maybe more…

    • bobbified on 20/04/2020 - 13:30

      Nope, no protection for you if travel agent goes bust.

      Wasn't there some sort of fund that licensed travel agents contributed to for the purpose of protecting clients' money in the event that travel agents goes bust?

      Edit: It was the Travel Compensation Fund that I was thinking about, but that stopped in 2014! Guess a possible chargeback is the best you can do now.

  • brokenglish on 20/04/2020 - 12:30
    +4

    October? No way. Situation in Australia mayyyyybe, but Asia nope nope.
    Why are you worrying - wasting your time and building up stress?
    You should now start cancelling those, get a refund and cut your losses. Yes you will lose money, everyone does in this situation, so limit the losses.

    Wait, why does it matter if they go bust? Do the agents not give you the plane tickets and the hotel itineraries in the beginning? What exactly are you paying for? Which travel agent is this?

    • Yehyeh on 20/04/2020 - 12:46

      Yes you are totally right, I just haven't cancelled because there's no indication that the agent would go bust (yes, if they would really tell us in advance lol!), so just had the thought that we can keep postponing till later until it's clear to travel.

      Yes we have been given the flight tickets, but since everything is done through third party agent, not sure if something happens would the airline bother to process the cancellation/change for us. You know how they usually direct you to speak with your agent… are the airlines (it's Singapore airlines) actually obliged to assist you if your agent gone bust…
      As for the accommodation we have just been given the itinerary from the agent, nothing official from the hotel, they say they will only provide it 2 weeks prior to the trip. I don't even know if they have passed on the money to the hotel (probably not).

      I have just sent an email to the agent to ask about getting refund/cancellations, see what they come back with!

      Thanks

      • brokenglish on 20/04/2020 - 12:50
        +1

        You look like you know what you’re doing - good luck!

  • PissLUR on 20/04/2020 - 13:02
    +2

    Wow. you are okay with paying $1K for the change fees.

    • tsunamisurfer on 20/04/2020 - 13:11

      I know….I would have lost sleep with $1k lost, on top of $11k 'at risk'.

    • Yehyeh on 20/04/2020 - 13:39

      Well, when we had it postponed/changed in early Feb, Singapore airline hasn't got the free change policy yet…and we are being told we had to change the accommodation booking 30 days prior otherwise no change/refund allowed. So just had to suck it in, paid $260pp for airline change fee and $55/pp for agent change fee. I know right, at that time I was still naively thinking the trip mayyyy still go ahead, am I pushing the postpone button too early…

  • ramb9 on 20/04/2020 - 14:02

    To put this into perspective though… if "everyone" that purchased from a travel agency is applying for a refund, they will definitely go bust versus if they hold the money, there's a good chance they can hold out till travel bans are over…

    Similar to how the Groupons are being extended for a year and they recommend everyone to just hold onto vouchers, except Groupon will likely survive the event.

    • Yehyeh on 20/04/2020 - 15:39

      Yes, it's a matter of weighing the risk of keeping money with the agent or cancel it now. It's lose lose position if I cancel, as I would also lose the $1k (at least) by cancelling… will see what they come back with and decide. Just thought there might be other ways of recouping the money (in case something happens) that I might not be aware of!

  • capslock on 20/04/2020 - 16:31
    +1

    If you paid by credit card and the travel agent goes out of business and it turns out the agent has not yet paid the airline or the hotels then you can ask for a refund from your bank.

    I would personally wait for the airline to cancel your flights so then it wouldn't be your fault and you may not have to pay a change fee although apparently Flight Centre still charges the change fee anyway.

    I agree with others that overseas holidays will not be allowed by October except maybe to NZ.

  • Downvoter on 20/04/2020 - 18:34

    I’ve got a holiday booked for the states in October. Cancelled it yesterday. Not going to happen.

  • [Deactivated] on 28/04/2020 - 12:39

    If your insurance doesn't cover covid related expenses, what's your plan if you get infect and require life support over there? Personally, anyone still looking at travelling is crazy and risk starting things up again. It's like the people who looked at numbers back in Feb/March and thought they would be fine only to infect and kill others.

  • blutek on 29/04/2020 - 13:11

    "If you paid by credit card …"

    As above, you will be able to start Chargeback through credit card provider if service is NOT provided.
    Do you have an eTicket for airfares? Airline has not cancelled flights yet?

    • Yehyeh on 04/05/2020 - 13:53

      I have paid by bank transfer unfortunately…
      Yes I do have eticket so I guess that should be okay, but I contacted the agent and they said if I cancel now I can only get $7k back, being the hotel cost. Flights are non-refundable (not until closer to the date - October - if the travel ban is still on).

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