Australian Travel Company AVG Travels Enters Liquidation After Cancelled Tours
Synopsis
Australian travel company AVG Travels has entered liquidation after customers reported cancelled tours and booking issues just days before overseas departures. Insolvency firm McGrathNicol has taken control of the company and suspended operations while reviewing its financial position. More than 100 affected travellers have contacted the ABC, with many now scrambling for refunds and alternative travel arrangements. The collapse has also renewed attention on the company’s removal from the Australian Travel Industry Association accreditation scheme several years ago for failing to meet financial and ethical standards.
Australian travel agency AVG is entering liquidation after customers complained that tours were cancelled,
Key Highlights
- AVG is going into liquidation
- Over 100 customers reached out after the tours were cancelled or rescheduled
- Operations were suspended during a review of the finances
- Customers went to the company’s Melbourne office looking for solutions and refunds
- AVG Travels had earlier lost ATIA accreditation over financial and ethical minima
More than 1,000 customers stranded after travel company collapses
AVG Travels has entered liquidation as many customers have described their overseas tours as cancelled or under review just days before departure. The Melbourne-based firm was offering international holiday packages at discounted prices across Asia, Europe, Africa, the Middle East and possibly the Americas but concerns grew after increasingly unhappy travellers claimed they were told details of their flight itinerary or confirmation that trips were going ahead could not be supplied.
Since first reporting the issue last week, the ABC says it has been contacted by more than 100 affected customers. A Facebook support group for those impacted has also quickly ballooned to more than 860 members, with cutomers sharing anger over cancelled holidays and refunds yet to make their way back into bank accounts or uncertainty around new bookings.
Liquidators halt and urgent review
Insolvency firm McGrathNicol has since been appointed as administrator of AVG Travels and confirmed that it would urgently assess the company’s financial status and put a stop to its current operations. The firm said customers would be contacted directly about their bookings as it sought to find the appropriate way forward for customers and creditors.
Angry passengers claim they turned up at AVG Travels’ St Kilda office in Melbourne for answers only to be met with a locked door and notice of the company’s liquidation. It remains controversial creatively how the multitude of travellers have been affected by a fall and what volume of income customers might eventually recover.
Company History and Customer Concerms Comes into Focus
GST records held by ASIC show that AVG Travels Pty Ltd is owned by Mestre Tiem Dao, a Melbourne Vietnamese national. The company bills itself on the website as The proudly Australian-owned travel agent and says it has taken more than 200,000 travellers around the world since emerging as an online travel agency in Vietnam in 2012 moving into Australia, Japan & the UK.
The collapse also shed light on the fact that the company was previously removed from an accreditation scheme owned by the Australian Travel Industry Association for not meeting minimum financial and ethical standards more than six years ago. “The recent developments serve as a reminder to consumers that they should book with established and licensed travel businesses that comply with strict operational and financial obligations,” ATIA chief executive Dean Long said.
Travellers Now Face Refund Issues
Thousands of distressed travellers are now waiting to claim their money back or rebook their holidays. Consumers are advised to reach out to banks insurance, and travel providers for a refund as they wait for any update from the liquidators. Consumable money recovery liquidator proceedings are drawn out under normal circumstances, but this time it can be a bit of a lengthy process.
FAQs
- What happened to AVG Travels?
AVG Travels was placed into liquidation following reports from customers of cancelled tours and booking issues
- Who is handling the liquidation?
The company will be liquidated by McGrathNicol.
- Are AVG Travels’ operations going on?
No, the operations of the Company are suspended.
- What is the number of customers impacted?
While the precise figure is unclear, the ABC said more than 100 customers reported problems.
- Was AVG Travels accredited?
It was expelled from ATIA over worries about its financial and ethical standards nearly six years ago.
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