Revealed: The sneaky tourism company that altered its policy so it could deny cash refunds to customers unable to travel due to the COVID-19 pandemic
- Youth tour company Topdeck was forced to cancel all upcoming trips
- Original refund policy said customers would get cash refunds for cancelled trips
- Last week it updated its policy retrospectively and said vouchers would be given
- Topdeck said vouchers are a popular option for people who still want to travel
- Learn more about how to help people impacted by COVID
One of Australia's biggest travel companies changed its refund policy to deny cash refunds to people who cancelled their trips due to COVID-19.
Youth tour company Topdeck was forced to cancel all upcoming trips until mid-2020 after travel was banned indefinitely by the federal government in an effort to curb the spread of the virus.
The operator initially promised refunds to customers who had trips planned before June 30 this year.
But last week it updated its policy retrospectively and told customers they would only be getting refunds in the form of credit, plus an extra $100, that expires on December 31, 2021.
Youth tour company Topdeck initially promised refunds to customers who had trips planned before June 30 this year
Topdeck offer tours all over the world to people aged between 18 and 39. Last week it updated its policy retrospectively and told customers they would only be getting refunds in the form credit, plus an extra $100
The policy change means that people who were previously promised a cash refund would now only get a voucher.
Topdeck said in a statement to Daily Mail Australia that vouchers are 'generally the most popular option for customers, most of whom are looking forward to travelling with us once the restrictions are lifted.'
It also said the company would be flexible if a customer is unable to use the voucher by the expiry date.
But young travellers are angry after being told the company are 'not able to process cash refunds, even if we had previously agreed to this'.
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Claudia Jones, who cancelled her trip in early March, was initially told in writing that her $4,000 tour would be refunded in cash.
The New Zealander was shocked when she got the email last week explaining she would only receive a voucher.
'I don't get how this is legal given I signed up and cancelled under their old cancellation policy,' she told according to The Guardian.
Ms Jones lodged a complaint with the Australian Competition and Consumer Commission (ACCC) and commented on the Topdeck Facebook page.
All international travel has been banned by the federal government in an effort to curb the spread of COVID-19. Pictured: Passengers from Cambodia pictured boarding buses to take them to isolation
According to the ACCC, offering a refund in the form of a voucher is in line with their guidelines.
But the watchdog told the publication companies can't apply new policies retrospectively.
It comes after the Council of Australian Tour Operators (Cato) - the travel sector's peak body - issued advice on their website urging tour operators not to provide cash refunds.
'Cato believes that it is in the best interest of consumers that future travel credits are issued instead of cash refunds,' it said.
'This will ensure maximum returns for each client, and help to preserve cash flows through each part of the travel supply chain.'
It has asked the ACCC to assist with policy development backing the decision.
Topdeck's major competitor Contiki also said it would give refunds in the form of vouchers, but did not change its policies retrospectively.
Consumer group Choice said people with complaints should their seek advice from their state or territory authorities.
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