The Collapse of AVG Travels
Aussie travel company AVG Travels has collapsed into liquidation, leaving thousands of holidaymakers in the lurch. Many customers have had their trips cancelled just days out from travel, while others already overseas fear they won’t make it home.
AVG Travels was known for selling heavily discounted overseas flight and tour packages to destinations across Asia, Europe, Africa, the Middle East and the Americas. Following days of concern from customers who abruptly had their tours cancelled or put “under review”, it confirmed on Tuesday that liquidators had been brought in.
“The Liquidators have assumed control of AVG Travels’ affairs and are undertaking an urgent review of AVG’s financial position and business operations to determine the best course of action to preserve value for stakeholders,” McGrathNicol, who has been appointed liquidator, said in a statement.
“At this stage, ongoing operations have been suspended and the Liquidators will be contacting all customers who have booked travel with AVG Travels. Further information will be provided as it becomes available.”
In an email to customers, the liquidators said AVG Travels was not able to process refunds for any deposits or payments made because it did not have the funds on hand to do so. It recommended that those who paid through a credit card contact their provider to check their options.
Impact on Customers
Customers who have paid a deposit or in full will become unsecured creditors in the liquidation. Unless customers have been issued airline tickets, it’s understood flights, hotels and other travel arrangements for future travel bookings had not yet been paid for by AVG Travels.
Those already on a trip with the company have been told to “continue as planned” unless they are contacted directly about impacts to their plans.
Frustrated Travelers
Frustrated travellers have visited AVG’s Melbourne head office, only to be greeted by a shut door and a note advising of the company’s liquidation. More than 1,000 Aussies have joined a Facebook group for AVG customers impacted by the company’s collapse, sharing their frustration as they are left out of pocket and in the dark.
“This is BEYOND ridiculous and so frustrating. I’m so upset as many other travellers would be. Disgusting company. So many of us have worked so hard to save up and enjoy a holiday, only to be out of pocket thousands of dollars,” one customer said.
“I’ve lost $20,000 and bank can’t do anything and insurance won’t cover liquidation,” another wrote.
“I’m totally gutted, our trip cost us $12,000, paid in full 18th May. One day before AVG was in the media,” a third frustrated customer said.
Thousands of other customers are currently on AVG tours overseas and are worried about whether they will get home.
Customer Linda Birchhome said it’s been a nightmare getting from Sri Lanka to the Maldives, after they found AVG hadn’t paid for accommodation. “We got stuck in the airport and had to pay for our own accommodation because they wouldn’t transfer us to the island until accommodation was paid,” she told A Current Affair.
Birchhome said their tour guide then reimbursed them out of his own pocket to make sure they got to their accommodation.
Company Background
AVG began as an online travel agency in Vietnam, before it established its head office in Melbourne in 2015 and opened new offices in Japan and the UK last year. It was founded by chief executive David Dao.
