Far from being a voluntary act, the competition and consumer regulator, the ACCC has forced travel group, Flight Centre to stop charging a $300 cancellation fee for customers seeking refunds on international travel (and $50 for domestic bookings) they have booked but been forced to cancel because of COVID-19.
The Commission said on Sunday that if Flight Centre had not changed its mind then the next move would have been court action against the embattled travel giant.
In a letter sent to customers on Saturday, Flight Centre backed down from the fee with the new policy applying retrospectively to cancellation fees already paid.
“The decision to waive [cancellation] fees will impact our business, nevertheless we have heard your feedback and we believe this step is the right one for the current economic conditions where stand-downs and job losses are a daily occurrence for many Australians,” Flight Centre Travel Group executive general manager Allisa O’Connell wrote in the letter.
“The waiver follows ongoing discussions with customers and regulators, including the ACCC [Australian Competition and Consumer Commission], and will apply retrospectively to bookings cancelled as a result of COVID-19 on or after 13 March 2020 for which a Flight Centre Cancellation Fee was charged. Please note this waiver applies to our fees – we cannot waive fees or conditions that airlines and other third party suppliers impose,” Ms O’Connell wrote.
The ACCC said in a statement on Sunday that the new refund policy will also apply to cancellations fees charged by Aunt Betty, Travel Associates, Student Universe, Universal Traveller and Jetescape Travel (trading as Byojet Travel), which are part of the Flight Centre group.
Flight Centre’s decision follows weeks of pressure from the ACCC for Flight Centre to improve its treatment of customers during COVID-19 travel restrictions.
The ACCC said in the statement its next step would have been court action if Flight Centre did not change its position.
“This announcement will provide faster relief for consumers than would have been likely to have resulted from any court action.
“The ACCC has received a large number of complaints about Flight Centre’s cancellation fees from consumers via its Infocentre, website, and social media channels.
“This is a very welcome move made by Flight Centre for thousands of customers impacted by COVID-19 travel cancellations,” ACCC Chair Rod Sims said.
“We are continuing to discuss issues in relation to refunds and cancellations with the travel sector, and encourage travel providers to treat consumers fairly in these exceptional circumstances.”
“While we know some consumers are very concerned about getting a refund or credit for their cancelled travel plans, we do ask people to be mindful of the significant impact that this pandemic has had on the travel industry.”
The ACCC said it has received more than 6,000 complaints from consumers dissatisfied with travel companies’ refund policies and cancellation fees, with thousands more contacting their local state or territory fair trading agencies seeking assistance resolving individual disputes.
