Healthy report for Australian travel agents
Fifteen hundred travellers in Australia claimed compensation for lost money in 2010 after their travel agent collapsed – a decrease of 57 percent from 3,532 in 2009 – according to the annual report of the Travel Compensation Fund (TCF).
In 2010 there were 19 agent collapses, which was down on 30 agents in 2009, with 340 new claims being generated compared to 1,073 in 2009.
The total amount of compensation for these agents in 2010 was $1,510,361, a 57% fall on $3,534,013 paid out in 2009.
The TCF is the primary protection in place to compensate consumers if the travel agent through which they book their travel collapses.
TCF participation is compulsory for travel agents (except in the Northern Territory) and is funded through contributions from agents on joining the TCF and through recoveries and investment.
TCF chief executive Glen Wells said, “The travel industry benefited from the improving international and domestic travel market in 2010.
“There was healthy sales growth in the outbound market although inbound was adversely affected by the strong Australian dollar and a slower recovery of overseas markets.
“The strong Australian dollar has driven travellers into agencies at a quicker rate than had been expected in the doldrums of 2009’s global financial crisis.
“Wholesalers saw a trend in customers upgrading to high standard accommodation, pre-booking tours and add-ons.â€
To limit litigation and agency failures, the TCF requires all participants to lodge an annual financial review for assessment against a set of financial criteria.
In 2010, only 0.3% of participants failed to meet the minimum standards. This figure sat at 2% in 2004 and has dropped steadily ever since the TCF introduced new online tools to assist participants to self-calculate and manage their operational reporting.
Wells added, “The Australian travel industry remains in a sound financial position and continues to meet all challenges and disasters that are thrown at it throughout the year.â€
Ian Jarrett
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