Travel professionals are pushing back against criticism of the broader industry after the collapse of tour operator AVG Travels sparked a wave of online commentary questioning the relevance of travel agents altogether.
AVG Travels, which marketed heavily discounted package holidays across Asia and other destinations including Japan, Vietnam, China, Sri Lanka and the Maldives, officially entered liquidation on Tuesday after days of mounting concern, with customers reporting cancelled trips shortly before departure.
The company became known for aggressively priced flight-and-land packages, with some deals advertised at discounts of more than 70 per cent.
The collapse quickly ignited debate online, with some commentators using the incident to question the role of travel agents and tour companies in the modern travel landscape.
“Surely tour companies and agents are to travel what Kodak is to photography. Redundant mostly,” one person wrote online.
“Who in the hell needs travel agents anymore…?” another commented.
Travel agent Luke Anthony Watts was among those to push back on the criticism, arguing many people were drawing the wrong conclusions from the collapse.
“This wasn’t a travel agent collapsing. It was a tour company,” Watts commented on an 10 News+ story covering the liquidation.
“The reality is that many of these deals were priced so aggressively that most DIY travellers couldn’t have replicated them themselves. In some cases, the flights alone would have cost close to or more than the package price.
“Likewise, if a client came to many experienced travel agents and asked us to match some of these prices, the honest answer would often have been no. Not because we didn’t want the booking, but because the numbers simply didn’t stack up against the real cost of the flights, hotels, transport and touring being advertised.”
Watts added that no part of the travel sector was immune from financial collapse.
“No travel professional can guarantee a supplier won’t fail. Airlines, cruise lines, tour operators and travel agencies can all run into financial trouble.
“The lesson here isn’t ‘don’t use travel agents’.
“The lesson is to understand who you’re trusting with your money, use payment methods with strong consumer protections and remember that the cheapest price and the best value are not always the same thing.”
Many online applauded Watts’ response, describing it as “excellent” and praising the nuance he brought to the conversation.
McGrathNicol, which has been appointed liquidator, confirmed it had assumed control of AVG Travels’ affairs and was conducting an urgent review of the business.
“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,” the firm 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 a further blow to affected customers, the liquidator said AVG Travels was unable to process refunds for deposits or payments made because it did not have the funds to do so. Customers were urged to contact their credit card providers.
Australian Travel Industry Association (ATIA) CEO Dean Long also defended the importance of industry accreditation in the wake of the collapse.
“The collapse of AVG Tours is a direct consequence of the gaps that exist when accreditation is not prioritised,” Long said.
“If travel businesses are not ATIA-accredited, or are choosing to work with suppliers and partners who are not accredited, they are creating the conditions for operators like this to exist and grow.
“That is a risk to your business. It is a risk to your customers. And ultimately, it damages confidence in the broader industry.
“ATIA accreditation exists for a reason. Businesses that do not prioritise it, or actively work around it, share responsibility for the space that unaccredited operators fill.”
