When TravelManagers’ Chief Operating Officer, Grant Campbell, first heard that Air Vanuatu had been placed into liquidation in May, his first thought was for the airline personnel, travellers and travel advisors who would be impacted as a result.
Last week, REX announced it has entered voluntary administration, and although the full impact of this latest development is still unknown, Campbell says it’s comforting to know that TravelManagers’ personal travel managers (PTMs) are once again protected from the risk of losses resulting from credit card chargebacks (CCCBs).
“Thirteen of our PTMs had clients whose travel plans were affected by the Air Vanuatu collapse,” Campbell notes, “but our Credit Card Charge Back Insurance (CCCBI) policy ensured that they were fully protected against losses incurred from credit card chargebacks. To date, it has paid out more than $30,000 in claims.”
He explains that when a travel advisor acts as merchant, they are at risk for one hundred percent of the gross charge if the end-supplier fails to provide the service because of insolvency and the client chooses to invoke a chargeback.
“Without a CCCBI policy – and we believe TravelManagers is the only travel company in Australia to have this protection in place – there is little that can be done to protect against this risk.”
Bianca Aarts, who joined as a PTM just six months ago, says she didn’t fully appreciate the importance of TravelManagers’ consumer protections, of which its CCCBI policy is one component, until the collapse of Air Vanuatu made them a necessity.
“Sadly, travel suppliers becoming insolvent isn’t a new thing, and dealing with such a situation was my biggest fear in starting a business of my own,” she explains. “Although it hasn’t been great to have one happen within my first six months, I am so grateful that TravelManagers has this protection in place.”
“I knew I needed a sturdy foundation to set myself up for success, and TravelManagers’ National Partnership Office (NPO) team has provided me with expertise and support every step of the way. Joining TravelManagers was the best decision I could have made.”
Aarts’ colleague, Darren Christensen, who has been with TravelManagers for more than fifteen years, says the news of Air Vanuatu’s collapse brought him renewed appreciation for TravelManagers’ wide-ranging protections.
“Over the last five years, I’ve had two instances of clients’ travel plans being impacted by the financial failure of well-established suppliers,” he explains, “and in both cases, TravelManagers’ risk mitigation measures ensured that my clients and I were protected from financial loss.”
“It’s every travel advisor’s worst nightmare to have to tell a client that their money is gone because of a supplier’s financial failure,” Campbell adds. “TravelManagers’ industry-leading consumer protections, which also provide protection for agent commissions, ensure that these conversations never have to happen.”
