Consumer Protection is advising people to read the terms and conditions of any ‘pay now, book later’ travel deals before purchasing holidays during the COVID-19 pandemic.
Commissioner for Consumer Protection, Lanie Chopping said that while regional border restrictions continued to ease in Western Australia, interstate and international travel restrictions were a different story.
“Many of us would like to book a holiday that we can look forward to, but there are risks in doing it too soon because you may have to postpone or cancel,” Ms Chopping said.
“It’s more important than ever to read the fine print when buying a flight, cruise, accommodation or holiday package. Pay close attention to terms and conditions in case you have to cancel or postpone your travel because of further disruptions.”
She said suppliers, such as hotels, might require you to pay 100 per cent of the booking upfront and the terms and conditions might restrict your ability to get any refund for cancellations.
“Airlines or travel agents may deduct fees or charges from refunds or place restrictions on future credit,” Ms Chopping said.
“You could end up losing money or sitting on a credit note or voucher while you wait for restrictions to be lifted, rather than having cash to spend on local travel or something else.”
Ms Chopping said Consumer Protection was currently handling hundreds of complaints from consumers whose travel plans had been impacted by COVID-19 and most were from people struggling to get refunds for their bookings.
“Of 370 complaints since the start of March, 124 have been about credit notes provided as the remedy instead of money back, 82 from people unable to get refunds, 66 about cancellation or refund fees and 33 complaints about how long it takes to get a refund,” she said.
“It is important that consumers understand that if their travel can’t go ahead, their money could be tied up in a credit note or voucher for the foreseeable future. In the worst-case scenario funds may be lost because a travel business closes due to financial difficulties.”
She said consumer law regulators have noted that some travel companies were advertising ‘pay now, book later’ holiday deals that must be used by as early as this November.
“Such marketing practices are a concern because of the potential inability for consumers to take advantage of the offers,” Ms Chopping said.
