APT agrees to higher refunds for COVID-19 cancellations

APT, an Australian family-owned tour and river cruising operator, has also agreed to reimburse customers who had previously had these costs deducted from their refund.

This follows the intervention of Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC).

ACCC’s concerns

According to Commissioner Sarah Court, ACCC was concerned that during the COVID-19 pandemic APT had been deducting — and representing to consumers that it was entitled to deduct — greater amounts from refunds that it was entitled to under its terms and conditions.

Court said that following months of engagement, the ACCC has now accepted a commitment from APT to stop deducting marketing and overhead costs from booking refunds impacted by the pandemic. 

APT will provide customers who have previously received a refund quote with a revised quote and will reimburse customers who have already received a reduced refund due to marketing and overhead cost reductions.

‘The costs that APT deducted for marketing and overheads amounted to 15% of the booking price and, with many holidays costing A$20,000, this meant a significant amount was withheld from the refunds given to consumers,’ Court said.

‘The ACCC considered that APT was not entitled to deduct these marketing and overhead costs as they were incurred before the booking was made and they would have been incurred regardless of whether a booking was made,’ she said.

Additional refunds

‘We are pleased that thousands of customers will now receive additional refunds and that this commitment will provide faster redress for consumers than court action, which would have been our next step.

‘The ACCC’s position on refunds to cancelled travel has been very clear since the start of the pandemic and we will continue monitoring the industry to make sure consumers are receiving the remedy they are entitled to.’

ACCC’s interpretation

Australian Pacific Holdings MD Chris Hall said the ACCC has a ‘different interpretation’’ of its terms and conditions in relation to refunds.

‘However, we have reached a mutually agreed position,’ Hall said.

‘For some guests affected by imposed suspensions, this means that the refund amount initially advised, paid or available to them will be increased.

A$400 administration fee 

‘The adjustment relates to a reduction in the fixed marketing and overhead charges. These charges have now been replaced by a one-off A$400 per passenger administration fee. 

‘As has been the case since April 2020, as an alternative to the refund option, we are offering a future holiday credit of 100% of the value of what was paid, with the (APT Travel) Group absorbing all incurred costs.'

The credit is valid until the end of 2023, available for use on any of the Group's brands, to any destination globally, and is fully transferable to a family member or friend.

‘Throughout this entire period we have also been considering, on a case-by-case basis, providing a full refund to any consumers who can provide evidence that they are experiencing hardship, including medical or financial, arising from the COVID-19 pandemic,' Hall said.

He added the company is working through contacting impacted guests and everyone will be contacted by March 31.