ACTION from the Australian Competition & Consumer Commission (ACCC) has seen APT Travel Group (ATG) commit to increasing refunds for guests affected by cancellations.
Following months of ACCC engagement, ATG’s APT and Travelmarvel brands have agreed to stop deducting both marketing and overhead costs from refunds, and to reimburse clients who had previously had the costs imposed.
ATG said it would be contacting all impacted clients by 31 Mar, with those who have previously received a refund quote to be provided with a revised offer.
Where a refund is sought (as opposed to a credit), APT will continue to deduct a one-off $400 per passenger administration fee to cover reasonable losses it has not been able to recover, as well as any third-party costs, and any fees relating to administration costs in arranging the refunds.
During the COVID-19 pandemic, the Commission said it was alerted to concerns about APT’s deduction practices, as well as its representation to consumers that it was entitled to deduct greater amounts than actually permitted.
“The costs that APT deducted for marketing and overheads amounted to 15% of the booking price and, with many holidays costing over $20,000, this meant a significant amount was withheld from the refunds given to consumers,” ACCC Commissioner Sarah Court said.
“The ACCC considered that APT was not entitled to deduct these marketing and overhead costs as they were incurred before the booking was made and they would have been incurred regardless of whether a booking was made…we are pleased that thousands of customers will now receive additional refunds and that this commitment will provide faster redress for consumers than court action, which would have been our next step.”
Australian Pacific Holdings (APH) Managing Director Chris Hall said, despite the ACCC’s “different interpretation” of the company’s refund terms & conditions, the two parties had reached a mutually agreed position.
“The APT Travel Group has made constructive steps of its own volition to provide greater scope and clarity around the issue of refund processing,” he said.
Hall added that APH had also been looking after individual customers on a case-by-case basis, providing a full refund to any consumers who can prove they are experiencing hardship such as medical or financial arising from the COVID-19 pandemic.