Flight Centre refunds for cancelled flights

[MEL_Traveller]

This is fantastic news for all consumers! While I'm happy FC is now doing the right thing, I wonder why it had to cause so much heartache for so many for them to get to this outcome.

 

[travel_bug]

The decision to waive fees will impact our business...The waiver follows ongoing discussions with customers and regulators, including the ACCC,

Reading into that context and subtext, I congratulate them for having the ACCC drag them kicking and screaming to the correct legal and ethical position for trying to profit off customers for flights cancelled by the merchant where they were happy to provide refunds directly, and trying to change the terms of contracts already entered into for their benefit.

 

[OZDUCK]

This ABC news report makes it clear that it was not a voluntary change of mind by Flight Centre. To quote - : The ACCC said it would have taken court action if Flight Centre did not change its position, but the company's move would provide faster relief. The threat of legal action seems to have been the catalyst for the change of mind.

Flight Centre stops charging cancellation fees for trips affected by coronavirus

The travel agent chain backs down from charging hundreds of dollars in cancellation fees for trips cancelled due to COVID-19 restrictions, following pressure from customers and the Australian Competition and Consumer Commission.

www.abc.net.au

 

[jarman_ah]

Dylarr summed it up perfectly: "However they have acted way too late and the damage has already done to their brand and probably the entire industry as a whole. I know whenever I think about a FCG brand, I will always remember the way they handled this and will avoid them. And I’d seriously question whether I would book through an agent for anything given how it’s so much easier to get an acceptable resolution when you’re dealing with the airline directly. "

My sentiments exactly. Customers are, generally, a pretty reasonable bunch, especially when planning something as exciting as an overseas vacation, but they have long memories when shonky trading practices are used to part them from their money.

Flight Centre (and quite a few other travel "agents", obviously with AFTA support) got away with it for as long as it could, by just doing it very quietly (through the fine print) and letting us think that this was the way things had to be, but COVID-19 suddenly brought it all out into the open, and now everybody has woken up to how it has been conducting its business. I didn't know that the ACCC got itself involved, but Flight Centre's mention of the "ongoing discussions" with ACCC is very enlightening. Wish I'd been a fly on the wall for those "discussions"!

Flight Centre's credit voucher of a whole 2.5% for customers who "choose to keep their money on file with us" when they have been taking, sometimes, amounts of 33% -- maybe even more -- for their cancellation fees up until this latest stoush doesn't, frankly, bring tears of gratitude to my eyes. Again, I am with Dylarr.... do it yourself, or use a travel agent who actually IS an agent and takes its fees from the recipient of the money (these do exist... or, at least, they did as recently as five years ago, when I had occasion to use one).

 

[jarman_ah]

This is fantastic news for all consumers! While I'm happy FC is now doing the right thing, I wonder why it had to cause so much heartache for so many for them to get to this outcome.

Just plain old fashioned greed, that's why! And, it seems, some enthusiastic support from the AFTA, which, maybe, could stand some investigation also!

 

[MEL_Traveller]

Just plain old fashioned greed, that's why! And, it seems, some enthusiastic support from the AFTA, which, maybe, could stand some investigation also!

For sure... but i don't understand their internal legal advice which must surely have advised against the charge? Slightly disappointing too were the very vague words from the ACCC in the first month or so... saying ACL doesn't apply, and a voucher may be sufficient. IIRC, plenty of people specifically asked ACCC about Flight Centr, and yet they still have the very soft wording. How did it take ACCC so long?

 

[jarman_ah]

For sure... but i don't understand their internal legal advice which must surely have advised against the charge? Slightly disappointing too were the very vague words from the ACCC in the first month or so... saying ACL doesn't apply, and a voucher may be sufficient. IIRC, plenty of people specifically asked ACCC about Flight Centr, and yet they still have the very soft wording. How did it take ACCC so long?

I have had very few dealings with the ACCC... my big consumer battle, which was with Telstra, involved the Telecommunications Ombudsman, which was also slow and reluctant to act -- but I have heard many times that people who HAVE had dealings with the ACCC find it a bit of a toothless tiger. In this case you would expect some reticence about getting into a stoush, and "soft wording" when it has to confront a big, powerful body like the AFTA. However, in this case it had a host of adverse public comments about Flight Centre to give it some dutch courage, and, of course, it was helped also by the fact that Flight Centre didn't have a leg to stand on, and knew it.

 

[MARTINE]

Hi fellow travellers
can anyone advise how long it took for their refunds for cancelled flights from FC (or subsidiary TA) to actually reach their accounts. I cancelled three fully refundable business fares late March and they say airlines backlogged for weeks to come. I am notdue to travel till next Sunday 10/5 on Qatar so maybe they are being processed by airlines by departure date??? I’m not concerned about the airline fees deducted for cancellation but interested in others experiences.

 

[theblank]

but I have heard many times that people who HAVE had dealings with the ACCC find it a bit of a toothless tiger.

I have heard that too, but seems to me most of those accusations have come from frivolous whinging about not getting their own way.

 

[jarman_ah]

"......Aunt Betty (Fright Centre)...... "

I don't know if that was a typo or if it was intended, but I applaud it!

Perhaps the fright has been taken out of them for a while!

 

[samh004]

And I’d seriously question whether I would book through an agent for anything given how it’s so much easier to get an acceptable resolution when you’re dealing with the airline directly.

Some agents, like FC I would agree. I had a few flights booked with AMEX Travel as my agent and they were wonderful to deal with through the process of cancellations. I guess it depends where you shop.

 

[TomVexille]

Too little too late from FCG IMO. I hope consumers stay away from their toxic brand.

 

[jase05]

Too little too late from FCG IMO. I hope consumers stay away from their toxic brand.

I’m still staggered that people use them.

 

[NoName]

Too little too late from FCG IMO. I hope consumers stay away from their toxic brand.

Agree. The brand was largely awful before this and now totally irretrievable. Or it should be. I’m sure plenty will still use them which is sad given how easy it is to do it all yourself 9 times out of 10.

 

[MEL_Traveller]

I’m still staggered that people use them.

This came up on AFF a few weeks ago - I my case the very simple reason was that Aunt Betty was $150 cheaper on the same flight to Bali than Garuda was direct.

 

[jase05]

This came up on AFF a few weeks ago - I my case the very simple reason was that Aunt Betty was $150 cheaper on the same flight to Bali than Garuda was direct.

I can see that point of view and I have used OTA’s in the past but I’m always worried about what happens if something goes wrong. I just find it easier to deal direct with the airline and cut the middleman out now and have just heard too many horror stories of people saving a few bucks initially but losing out eventually

 

[TomVexille]

I’m still staggered that people use them.

The people I know that use them generally are overwhelmed by the whole process and can't be convinced that it's easy to do it yourself. The thing is there's plenty of excellent TAs out there who do a much better job without the deceptive business practices.

That's not saying that there aren't some good operators within FC, but I also know a few current/past FC agents, and they're all just salespeople with very limited travel knowledge.

 

[jase05]

The people I know that use them generally are overwhelmed by the whole process and can't be convinced that it's easy to do it yourself. The thing is there's plenty of excellent TAs out there who do a much better job without the deceptive business practices.

That's not saying that there aren't some good operators within FC, but I also know a few current/past FC agents, and they're all just salespeople with very limited travel knowledge.

That’s my point. For those that are overwhelmed and not confident there are hundreds of bricks and mortar TA’s that provide an excellent service and are worth their weight in gold. FC staff tend to have little to no knowledge and are just salespeople as you say

 

[MEL_Traveller]

But in many cases booking through FC or direct with an airline is identical, just a different interface. So I'm not sure the booking process is always the reason... but cost is important.

 

[jarman_ah]

That’s my point. For those that are overwhelmed and not confident there are hundreds of bricks and mortar TA’s that provide an excellent service and are worth their weight in gold. FC staff tend to have little to no knowledge and are just salespeople as you say

I have always found the salespeople at Flight Centre to be quite delightful (one went to school with my daughter, who is also delightful).... and when I first got wind of these exorbitant (and now extinct) cancellation and alteration penalties, I actually asked one of the girls at my local FC if it was true. She admitted it with a look of shame and deep embarrassment. So it's not the salespeople's fault.... they probably don't like the company's methods any more than customers do, and I suppose they are the ones who have to sit and take all the flak when the customer finds out he's been hoodwinked. No wonder Flight Centre hires very young and polite people, mainly female.... they haven't yet learned how to fight back! I wonder if they were specifically instructed NOT to draw attention to those charges?