Australian travel company collapses a week after tours cancelled

Travellers last week reported being dumped by AVG Travels just days before their overseas holidays. (www.avgtravels.com) AVG Travels has entered liquidation a week after customers reported being dumped by the company just days before their overseas holidays. The ABC has been contacted by more than 100 customers since first reporting the issue last week. Insolvency firm McGrathNicol says ongoing operations have been suspended and customers will be contacted about their bookings. Link copiedShareShare articleAn Australian travel company selling heavily discounted international holidays has collapsed, leaving customers scrambling and their plans in disarray. Today, liquidators were appointed to Melbourne-based agency AVG Travels, which promoted cut-price flight and tour packages to destinations across the world. It followed days of growing concern for customers who had reported their tours being cancelled or placed "under review" just days before departure, first reported by the ABC last week. Insolvency firm McGrathNicol has been appointed liquidator, taking control of the company's operations as it assesses what can be recovered for customers and creditors. In a statement, McGrathNicol said it had "assumed control of AVG Travels' affairs" and was "undertaking an urgent review of AVG's financial position and business operations to determine the best course of action to preserve value for stakeholders". Ongoing operations have been suspended and customers will be contacted about their bookings, it added. It is not yet known how many travellers have been affected across the company's tours, which include destinations across Asia, Europe, Africa, the Middle East and the Americas. Frustrated travellers demanding answers and refunds turned up at the company's St Kilda office in Melbourne today, only to be met with closed doors and a note advising of the company's liquidation. A note informing people of the liquidation has been left on the doors of AVG Travels' Melbourne office. (Supplied) The ABC has been contacted by more than 100 customers since last week, with some saying their itineraries were changed or cancelled at the last minute. A Facebook support group for AVG customers has now amassed more than 860 members, many today venting their frustration about the company's collapse. AVG Travels Pty Ltd is owned by Duc Tiem Dao, a Vietnamese national living in Melbourne, according to records from ASIC, the financial services regulator. The ABC has contacted Mr Dao for comment. On its website, the company describes itself as "proudly Australian-owned" and said it had taken more than 200,000 travellers around the world. The website said it began as an online travel agency in Vietnam in 2012, before establishing an office in Melbourne in 2015 and offices in Japan and the United Kingdom last year. In a statement last week, AVG Travels said it took "customer concern seriously". "While current industry-wide and operational pressures have necessitated some itinerary adjustments, our team is proactively engaging with all affected travellers to provide fair and appropriate resolutions," it said. "We are maintaining close collaboration with our global network of partners to ensure the continuity of our services. "Our focus is on resolving all pending matters swiftly and restoring the high standard of service our customers expect." Gold Coast resident Mary Tait, 71, was due to leave for a 16-day tour of China next week, but never received her flight details or an itinerary from AVG Travels. She said she and her travelling companion paid about $3,400 each for the trip, which included visits to Beijing and Shanghai. "It's been very scary and sad," Ms Tait said. "We have been in limbo, wondering if this trip would go ahead, and now it looks like it most definitely won't." Now with the company in liquidation, she said they were scrambling to make alternative plans. "We're going to have to figure out how to try and get our money back, and I'm not sure even if we [ever] will." Mary Tait (right) had booked a trip to China through AVG Travels. (Supplied: Mary Tait) AVG Travels was removed from an accreditation scheme run by the peak body for Australia's travel businesses more than six years ago for failing to meet "financial and ethical standards". Dean Long, the CEO of the Australian Travel Industry Association (ATIA), said the liquidation represented a "sorry day" for customers, many of whom now face the difficult process of trying to recover lost money. "This situation is a strong reminder to Australians to always choose an ATIA-accredited travel business. ATIA-accredited businesses are among the best in this sector and they meet high financial and operational standards assessed on an annual basis," he said. "Accreditation is a genuine quality threshold that ensures businesses are operating at a premium level." Copy linkFacebookX (formerly Twitter)PromotionTop StoriesUS military strikes Iranian b

Australian travel company collapses a week after tours cancelled

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