Dozens of New Zealand holidaymakers are believed to have suffered financial losses following the collapse of tour operator AVG Travels, leaving many scrambling to change travel plans and recover funds.
Among those affected were Christchurch couple John Downing and Lena Buck, who were already holidaying in South Korea and preparing to begin a 19-day tour of China when uncertainty struck, as reported by Stuff.
“We didn’t even know what hotel to go to,” Downing, 71, said, Stuff has quoted.
The couple received their long-awaited itinerary on May 26, just a day before the tour was scheduled to begin. However, only hours later they were informed by the liquidator of AVG Travels’ Australian parent company that the business had ceased operations.
“to say they were out of business”.
“We sort of suspected that something was going to happen, because it was so close to the deadline,” as quoted by Stuff.
Having booked their own flights, the pair were unsure whether the tour would proceed and decided not to take the risk.
“We took that to mean the tour was cancelled”, Stuff has quoted.
Rather than turning up for a tour that may not have operated, they opted to travel to Japan instead.
“We just sucked it up”.
They later discovered the tour had gone ahead, although many other customers waiting for flights and travel arrangements were also impacted by the company’s collapse, Stuff has reported.
An Ōamaru woman, who had booked an 11-night trip to China as an early birthday celebration, said she was devastated after losing nearly $7000.
“an early 60th birthday present for me”.
The package included flights, accommodation, insurance and visits to major attractions such as the Great Wall, Tiananmen Square, the Terracotta Warriors and Shanghai.
“Makes me feel very shitty, really,” as quoted by Stuff.
AVG Travels had built a reputation for offering discounted package holidays across Asia and other destinations. The traveller said she had researched the company and found positive reviews before making her booking.
“so I booked it”.
She paid a deposit by credit card but transferred the remaining balance through her bank, making recovery of the funds more difficult.
AVG Travels Pty Ltd entered liquidation on May 26, with liquidators appointed the same day. Both the Australian and New Zealand operations were owned by Melbourne-based Vietnamese national Duc Tiem Dao, Stuff has reported.
A growing Facebook group of affected customers includes dozens of New Zealanders, with some claiming losses of up to $30,000.
In a message sent to customers, the company acknowledged its financial difficulties, stating: “AVG Travels is unfortunately not in a position to continue normal operations or guarantee future travel services,” Stuff has reported.
The company also advised customers “to assess whether you can make a claim” through their insurers.
For some travellers, however, that option offered little comfort. The Ōamaru woman said her travel insurance was purchased through the same company that had collapsed. While she expects to recover her deposit through her credit card provider, she believes the remainder of her payment is lost.
Despite the setback, she has already booked another holiday through a different provider and secured independent insurance coverage.
“I won’t be stung twice,” she said, as quoted by Stuff.
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