Issue Date:  -  Monday, 22 August 2005

Commissioner rocks the boat - South Australian Travel Centres Pty Ltd

The Consumer Protection Commissioner Patrick Walker has launched a ground-breaking test case in the Supreme Court on behalf of four consumers who lost money to South Australian Travel Centres Pty Ltd (SATC) in the Around The World Cruises (ATWC) debacle last year.

SATC trades as The Rail Holiday Centre.

SATC sold holiday packages between March and August in 2004 with one component being a cruise by the now defunct ATWC, which saw 500 consumers lose thousands of dollars. Distinct from other travel agents, SATC went beyond the traditional role of a travel agent and created a unique holiday package.

ATWC was a cruise operator and as such did not need to be a licensed travel agent and therefore the Travel Compensation Fund did not underwrite its products.

“Although many consumers may have lodged claims with the Administrator for Safezone Pty Ltd who owned ATWC, it is highly unlikely that they will see any significant return of their money”, Mr Walker said.

“Our foremost concern was always that consumers might lose their money and not be provided with what they had paid for”, he said.

Many of the people who lost money were retirees.

Having decided that a Supreme Court test case is in the public interest, the Commissioner has now ‘stepped into the consumers’ shoes’ and is representing them in their claim for compensation against SATC.

“This is a very important case for the travel industry as it will test the boundaries of liability of travel agents that put together holiday packages”, the Commissioner said.