Latest news with #Traveldream
ABC News
30-05-2025
- Business
- ABC News
Collapsed tourism agent Traveldream may have taken customers' money while insolvent
Australians who say they have been left stranded overseas and broke after their travel agency collapsed have now been told the company was likely trading while insolvent. Melbourne-based agency Traveldream — which was registered as Australian Travel Deals Pty Ltd and sold discounted flights, cruises and international tour packages — collapsed in April and went into voluntary administration. Now, an administrator's report has found the company was "likely" trading while insolvent from 30 June 2024, more than nine months prior to entering voluntary administration. Directors found guilty of allowing a company to trade while insolvent can face civil or criminal penalties and be banned from managing companies. Do you have a story to share? Email ABC News has spoken to dozens of travellers who booked once-in-a-lifetime overseas trips through the agency, many spending between $10,000 and $30,000, only to discover their bookings had been cancelled — in some cases mid-trip. If the company went into liquidation, there would be some possibility their costs could be recovered, but it would be a lengthy process. Debts to customers, who are considered "unsecured creditors," would be some of the last — and least likely — to be repaid. Cairns healthcare worker Glenys Carpenter and her husband Glen booked a $32,000 tour of Canada and the US in February — during the period the travel agency was likely trading insolvent, according to the administrator's report. They were due to fly out on Monday, but this week discovered several tours and the hotel rooms they paid for had been cancelled. "I've lost sleep, lost weight and the stress has been unbelievable. People need to be held accountable." Some customers remain overseas, re-booking hotels and tours at their own expense. Others have cancelled plans they cannot afford to pay for again. Brisbane couple Michelle and Peter Brown landed in Toronto after 20 hours in transit — only to be told their hotel room did not exist. Days later, their Las Vegas accommodation was also cancelled. "We had confirmation emails for everything. We borrowed money and planned for this for years," Ms Brown said. Administrator Mcleod's investigation into the full financial picture remains ongoing. Since March, Traveldream's sole director has been Christopher Banson, who co-owns Saltwater Properties — a company operating high-end holiday rentals across Australia and which holds stakes in more than 30 other businesses. Documents filed with ASIC show Traveldream owed Saltwater Properties more than $758,000. The administrator's report also showed nearly $1 million in payments flowed from Traveldream to Saltwater Properties over four years. "I note that the company and Saltwater Properties regularly transferred funds between one another," the administrator wrote. Mr Banson told ABC News Traveldream was "funded by Saltwater Properties" and blamed the company's downfall on a separate wholesaler, My Travel Experience. He said Traveldream paid My Travel Experience in full for customer bookings and that it was the wholesaler who failed to pass on funds to hotels and airlines. But the wholesaler's director, Russ Masterson, rejected this, and said his company never took money directly from Traveldream customers and that cancellations were likely due to non-payment. Traveldream was stripped of accreditation by the Australian Travel Industry Association in 2020 over concerns about its directorship and finances. Despite that, the company's website continued to display badges claiming affiliation with the International Air Transport Association (IATA) and Cruise Lines International Association (CLIA). ABC News has confirmed Traveldream was never a CLIA member and can also reveal it was operating without a trust account to hold customers' money — a key consumer protection mechanism used protect client funds in the event of collapse. Jodi Bird, an insurance expert at consumer group CHOICE, said the collapse exposed major weaknesses in consumer protection for those booking travel online. He said Australians left out of pocket by failed travel booking companies had limited options to recover their money. Australia once had a national consumer protection scheme for travel bookings known as the Travel Compensation Fund (TCF), that would compensate customers if a travel agent became insolvent. Membership in the TCF was mandatory for licensed agents, but the scheme was abolished in 2014. Swinburne University corporate governance expert Helen Bird said the travel industry should consider an emergency indemnity fund to protect consumers. "If I were the big players in the industry, I would be doing that, because it's their reputation as much as the little players'," she said. Kim Arnold — director of policy and education at the Australian Restructuring, Insolvency and Turnaround Association — said if the company was placed into liquidation, the liquidator may be able to pursue the director personally for debts incurred while the company was insolvent. "Either they reach a settlement, or the court makes an order and then the director has to pay that money into the liquidation," she said. Ms Arnold said customers would likely remain unsecured creditors and sit low on the list for repayment. A second creditors' meeting will be held on June 3 to determine the future of the company — including whether it will move into liquidation. In the meantime, impacted customers, uncertain whether their holidays will go ahead, have begun tying yellow ribbons to their suitcases — a quiet show of solidarity for those left in limbo. Ms Carpenter said she was clinging to hope that someone will be held responsible. "This isn't just bad luck," she said.
Japan Today
26-05-2025
- Business
- Japan Today
An online travel company just collapsed. Here's how to avoid being left stranded by an online deal
By Madalyn Scerri and Anita Manfreda sold discounted holidays – curated hiking tours, boutique cruises and cultural getaways through a slick website and polished social media ads. But news emerged last week that the Melbourne-based travel company has collapsed into administration, leaving customers out of pocket by thousands of dollars, and in some cases, stranded overseas. What many didn't know was that Traveldream hadn't been formally accredited with the leading industry body since 2020. Its status under the Australian Travel Accreditation Scheme, run by the Australian Travel Industry Association, had been cancelled. To make matters worse, most travel insurance policies don't cover insolvency, meaning many customers have no way to recover their losses. Australians are expected to spend over A$2 billion booking holidays online in 2024–25. Big name platforms such as and Expedia account for about 60% of this activity. But many travellers are also turning to smaller or lesser-known providers offering flashy deals and lower prices, often with fewer safeguards. So, how can you protect yourself? Start with these five checks. 1. Don't be swayed by slick websites or social media ads It's a common tactic, and one that's hard to resist. You're scrolling, you see a dreamy image, the price is tempting, and suddenly you're halfway through checkout. But a polished ad doesn't guarantee legitimacy. Travel-related scams are on the rise, especially involving online-only sellers. Check for a verifiable business address, phone number and customer support. If the deal feels vague, under-priced or overly urgent, that's a red flag. Look for independent reviews (on Trustpilot, Tripadvisor or Google), and check Scamwatch for known issues. 2. Look at how the company engages with customers A company's reputation isn't just about what it promises: It's built on how it responds to questions and complaints. Before booking, take a moment to see how the business interacts with customers online. Do they reply constructively to complaints? Do they offer updates or explanations when issues arise? Also notice the tone. Does it feel human and responsive, or generic and hands-off? That can suggest how they'll treat you after the sale. Small signs can speak volumes. A page with thousands of followers but no visible engagement may indicate a paid audience – and a company that vanishes when things get difficult. 3. Check if the company is accredited Another way to assess a travel company's credibility is to check if it holds formal accreditation. This signals the company has met standards in financial security, customer service and dispute resolution. Accreditation offers extra reassurance, but it's not the whole picture. Some large, reputable companies, such as Expedia, operate without it. If a company isn't accredited, proceed with caution and focus on how bookings and payments are handled. 4. Scrutinise policies carefully Before booking, check what happens if the provider goes bust, whether you can cancel or reschedule, and how your booking will be confirmed. Where possible, follow up directly with the hotel, airline or tour operator to make sure reservations are secured. It's also important to understand what travel insurance does – and doesn't – cover. Company insolvency is one of the most common exclusions. Unless a policy includes 'end supplier failure' or a similar clause (most don't), you may not be able to claim a refund. Always read the Product Disclosure Statement to check exactly where you stand. Another safeguard is to pay with protection in mind. Although conditions vary by provider, credit cards may offer chargebacks if the goods or services aren't delivered. 5. Book direct where feasible While accredited travel agencies can be helpful for complex itineraries, like overseas trips with multiple stops or bundled services, it's often worth booking directly with the provider when making travel arrangements online, whether that's a hotel, airline or tour company. Cutting out the intermediary can offer better value, including complimentary extras, flexible cancellation and full access to loyalty programs. Direct bookings usually reflect real-time availability and pricing, reducing the risk of outdated information. You'll benefit from direct communication and confirmation, making it easier to customise or resolve issues. The bottom line? As more people book holidays online, it's becoming harder to tell what's trustworthy and what could leave you out of pocket. Traveldream's collapse is a reminder. Even in the world of digital travel deals, it pays to ask: Is this company built to last, not just until your trip departs, but until you return home? Madalyn Scerri is Senior Lecturer in Tourism and Hospitality, Torrens University Australia. Anita Manfreda is Senior Lecturer in Tourism, Torrens University. The Conversation is an independent and nonprofit source of news, analysis and commentary from academic experts. External Link © The Conversation
ABC News
15-05-2025
- Business
- ABC News
Travel company collapses leaving holiday-makers stranded and out of pocket
Holiday-makers have been left thousands of dollars out of pocket — and others stranded overseas — following the collapse of an Australian travel company, prompting warnings from industry experts about the risks of booking through unaccredited agents. Melbourne-based Traveldream, which operated solely online, has been placed into administration, leaving customers scrambling for refunds on pre-paid holidays. The company, registered as Australian Travel Deals Pty Ltd, sold discounted flights, cruises, and international tour packages. It is owned by Melbourne businessman Christopher Banson, who also operates another travel-related business, Saltwater Hotels and Resorts, which remains unaffected. The ABC has contacted Mr Banson for comment. Traveldream ceased trading in late April, but news of the collapse is only now filtering through to some customers, many of whom say they weren't informed. Queensland nurse Donna Lamberth was one of them. Ms Lamberth from Injune, in the state's west, had booked what she called the "trip of a lifetime" — a nearly $19,000 getaway with her husband, Warren Banks. They had planned to travel from Vancouver to an Alaskan cruise, through the Rocky Mountains, and on to Las Vegas and the Grand Canyon. It was more than a holiday — it was a personal turning point. "So I made a promise to myself that I'd take a big trip every year from now on." Ms Lamberth booked the holiday through Traveldream after reading positive reviews. She thought she had paid for the holiday in full. But earlier this month, she discovered that aside from the main international flight — later returned as a credit — nothing else had been paid for. The Alaskan cruise, all internal travel, accommodation, and tours were unpaid. "I was absolutely shattered," she said. "I'd done everything right. I had full insurance. I paid it off. I followed the advice. And now we're back to square one." This month, Chris Broughton and his wife Viki were supposed to be celebrating her 70th birthday with the trip of a lifetime this month, exploring Yellowstone National Park, the Canadian Rockies, and cruising through Alaska. Instead, the Sydney pensioners have been left more than $12,000 out of pocket, after discovering their pre-paid tour through Traveldream had not been secured. Despite having travel insurance with Allianz, the couple has learned it doesn't cover losses related to agency insolvency. "My wife is feeling very dejected. We just hope we get something back and can start again." A private Facebook group formed by impacted customers has grown to more than 150 members. The company's administrators, McLeods, confirmed around 75 customers had come forward so far, but that number is expected to grow. Managing director Bill Karageozis said early estimates suggest customers may be owed more than $1 million and the future of the company will be discussed further at the end of the month. The collapse has prompted renewed warnings from the Australian Travel Industry Association (ATIA). CEO Dean Long said Traveldream had its accreditation cancelled in March 2020 over concerns with its directorship and finances. "They failed to provide the relevant information that we require to maintain accreditation under our scheme. They were removed from the scheme immediately," Mr Dean said. "We rejected 16 per cent of companies that sought to be credited under ATIA last year. "Australian businesses are very compliant with Australian consumer law but we do find those secondary or third sites where people are shopping on the lowest price point can be a problem."
7NEWS
15-05-2025
- Business
- 7NEWS
Online travel agent Traveldream collapses, customers left thousands of dollars out of pocket
Australian travellers have had their dream holidays turned into nightmares after a travel agency collapse leaves dozens of people tens of thousands of dollars out of pocket. Online travel agency Traveldream was placed into administration last month, ceasing trading on April 28, according to the Australian Securities and Investments Commission (ASIC). It initially applied to go into administration last December. Customers of the Victoria-based company have little information about the flights, accommodation, tours and cruises they booked through the agency or whether they will get refunds. A note posted on its website from administrator Bill Karageozis of insolvency firm Mcleods, urges customers to immediately contact their travel suppliers to confirm if bookings were still valid. Customers are urged to contact their travel insurers and submit a claim if their bookings are not valid. Traveldream, which operated under Australian Travel Deals Pty Ltd, boasted about its international luxury hotel and resort deals online. A Facebook group has been created to help customers affected by Traveldream's collapse. 'Received an email today saying Traveldream is in administration,' one customer posted in an online review of the company. '$7000 paid to them. No answer from their number, website down and Facebook page gone.' Another customer said they were due to fly to China with a group of 12 friends for a tour in November and each had paid a deposit of $500, which they do not believe they will get back. 'This experience has been incredibly frustrating and disappointing. We trusted this company with our plans and our money — and feel completely let down.' A family planning their dream Alaska trip said they were asked for final payment of their tour on the same month the company went into administration. 'Apparently, Traveldream applied for Administration on December 3, 2024,' the family said. 'Yet they had the nerve to ask for the final payment of our tour in April 2025. Total of $17598.00 lost. 'We have contacted the administrators and were again advised to contact our travel insurance, but we hold little hope of recuperating any of any money.'
Daily Mail
14-05-2025
- Business
- Daily Mail
BREAKING NEWS Major Aussie travel company goes bust leaving almost 100 dream holidays in the lurch
Dozens of Aussie families have lost thousands, had their dream holidays ruined and even left stranded overseas after a major travel company collapsed. Online travel agency Traveldream went into administration and ceased trading on April 28. The collapse caused flights, accommodation, cruises and tour bookings for its customers to be canned at the last minute. A mother and her two daughters lost $33,000 while a group of travellers, currently overseas, found there was no booking under their name after arriving at a hotel. Donna Lamberth and her husband lost $15,500 from the fall-out of the collapse. The couple saved for two years to go on the trip, which started in Vancouver, followed by a cruise from Alaska before they finished in Las Vegas. In December, they finally paid off all of the trip. 'I'm going to have to save again. It's a lot of money to lose,' she told When Ms Lamberth rang the cruise company, she learned the devastating news that only $250 had been paid as a deposit on the cruise. 'They said there was still $7,000 to pay. I burst into tears,' she said. The Lamberths had to cancel their holiday because they couldn't afford to pay for the accommodation and the cruise again. Michelle Brown, along with her husband and friends, arrived in Vancouver last Friday after spending 21 hours flying from Australia. 'We turn up there at whatever time of night. They said "sorry we don't have a booking",' Ms Brown told She was one of at least 75 people who lost out on the collapse according to the administrator Bill Karageozis, from insolvency firm Mcleods. Mr Karageozis said the company's debts were unlikely to exceed $1million and that there were no 'available tangible assets' of the company. The administrator encouraged customers to try to find out who their travel 'wholesaler' was – the company the travel agency paid to secure services. The list of some of the suppliers customers were told to contact were Royal Caribbean Cruises, Holland America Cruises, Qantas, Air Canada, United Airlines, American Airlines, Singapore Airlines, Westjet and Canada Rockeries Keywest Tours. Christopher Banson is the sole director of Australian Travel Deals Pty Ltd, the name under which Traveldream is registered. It has been in business since 2016. He runs also Salt Water Hotels and Resorts, which has 30 properties around Australia but was unaffected by the collapse of Traveldream. Another shareholder, Travel Dream Australia Pty Ltd, owes Traveldream $49,000, according to the administrators. This company is directed by Paul Mercuri, who co-founded Traveldream but was not working at the company when it collapsed.
