Andrew Wilkie (Clark, Independent) Share this | Hansard source

The travel and tourism industries obviously remain in dire straits. Among other problems, thousands of Australians are still chasing refunds for holidays that were cancelled because of the COVID-19 pandemic. Indeed, my office continues to be approached by constituents who are struggling to get their money back for flights and holidays booked more than 12 months ago. Compounding these problems for consumers is, of course, that Australian legislation does not guarantee refunds when travel is disrupted due to external forces such as border closures. In other words, whether it be airlines, travel agencies, tour companies, cruise lines, rail companies, wholesalers, package holiday companies or travel insurance providers, there are simply no laws in place to protect consumers. That is why I'm supporting this motion by the member for Menzies.

On top of the physical and emotional stress of the pandemic, the financial burden experienced by many Australians over the past 15 months or so has been enormous, most obviously from job losses, reduced work hours and difficult trading conditions. But it's also included purchases not honoured, especially in the travel and tourism sectors. One particular constituent was given no choice but to accept a $15,000 flight credit voucher valid for just 12 months and with limitations on the way the credit could be used. For instance, only one trip can be booked at a time and that trip must be taken before another can be booked. So, by my calculations, the constituent would probably need to go on at least one trip per month in order to spend this amount in domestic airfares. While that might sound lovely to some people, in reality it would be entirely impractical and end up costing far more in accommodation et cetera. It's ridiculous. Another constituent has been chasing a refund through Jetstar or, as he calls it, 'theft star'. The flight was booked via Flight Centre. For over 12 months the man was told he was ineligible to receive a credit for his flight and no credit for the additional baggage fees. Only last Friday, after 12 months, and countless calls and emails, did he finally receive the flight credit.

Obtaining a refund has been especially hard for the vulnerable in our community. For example, Australians without internet access or the knowledge of how to follow up on travel cancellations have been severely disadvantaged. There was the elderly couple who approached my office that were offered a credit for a cancelled flight even though one partner is very ill and unlikely to ever travel again. Yes, in this case, the credit has now been extended for a further 12 months and they have been told other family members can use the voucher. But this is not good enough, because this couple should be entitled to a full refund without having to fight for their rights.

The big companies are letting people down. It is not just flight cost refunds that consumers are chasing. For instance, some service providers are also refusing or unable to repay clients as they have already used the cash to keep their businesses alive. Currently, the ACCC states that consumers' eligibility for a credit or refund depends on the terms and conditions of their purchase, but how often does someone read every word of the Ts and Cs? Even if they are provided to customers before confirmation of booking, as stated in this motion, there still need to be further consumer protections. Sure, few people would have predicted the impact of COVID-19 on travel and tourism, but the bottom line is that the current consumer laws just don't cover it and that needs to be remedied.

Mind you, there are obviously two sides to this matter, because, to be fair, travel agents are doing it tough as well, not least of which because often the outstanding money consumers are seeking is actually being held by downstream service providers who don't always want to cough it up. The significant time it takes travel agents to help consumers obtain their refunds is not paid work for the travel agents. That's all against a backdrop of almost no lucrative international travel booking income for those businesses. That is why reform of the travel industry is just as necessary for travel agents as it is for consumers. Consumers and often their travel agents are being hung out to dry here, but the situation can be remedied. That's why I strongly support this motion and trust the government will pay attention and act on it.

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