The collapse of AVG Tours is a direct consequence of the gaps that exist when accreditation is not prioritised.
That’s the view of Dean Long, CEO of the Australian Travel Industry Association, following news that the Melbourne-based company had gone into liquidation.
Hundreds of Aussie travellers have been left anxiously waiting for answers after the budget tour operator officially suspended operations this week.
Insolvency firm McGrathNicol has since been appointed liquidator and says affected customers will be contacted about their bookings.
AVG Travels had previously lost industry accreditation over financial and ethical compliance concerns.
“If travel businesses are not ATIA-accredited or are choosing to work with suppliers and partners who are not accredited, they are creating the conditions for operators like this to exist and grow,” commented Mr Long.
“That is a risk to your business. It is a risk to your customers. And ultimately, it damages confidence in the broader industry.
“ATIA accreditation exists for a reason. Businesses that do not prioritise it, or actively work around it, share responsibility for the space that unaccredited operators fill.”
AVG Travels specialised in heavily discounted overseas package holidays. The company faced weeks of mounting complaints from customers about cancelled tours, missing flight tickets and delayed refunds.
The collapse follows growing controversy surrounding the company after dozens of tours to destinations including China, Sri Lanka and South America were either cancelled or placed “under review” at short notice.
Some travellers reported learning their trips had been axed just days before departure, while others were allegedly stranded overseas, scrambling to make alternative arrangements.
For customers, the biggest concern now is whether they will recover their money.
Consumer advocates say those who paid by credit card may be able to seek chargebacks through their bank, while travellers with comprehensive travel insurance could potentially claim losses depending on their policy coverage.
However, experts warn refunds are not guaranteed, particularly for customers who paid by bank transfer or debit card.
Under Australian insolvency laws, unsecured creditors – including customers awaiting refunds – are often among the last to be repaid.
The Australian Competition and Consumer Commission has reminded consumers they are protected under Australian Consumer Law if services paid for are not delivered, although enforcing those rights can become far more complicated once a business enters liquidation.
