Melbourne-based agency Traveldream went into voluntary administration in April. (Source: AAP)
Australian travellers have lost more than $1 million on prepaid holidays after online travel agency Traveldream collapsed earlier this year. Now, they have been told not to expect to see their money back.
Melbourne-based travel company Traveldream collapsed into administration in April, leaving customers out of pocket by thousands of dollars and some stranded overseas. The company, which was registered as Australian Travel Deals Pty Ltd, sold discounted flights, cruises and international tour packages.
A new administrator’s report has revealed the company paid another Melbourne-based company, My Travel Experience, about $1.22 million to secure flights, accommodation and tours for customers.
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This company failed to pass the money on to suppliers and went into external administration itself two weeks ago. This means customers have little chance of recouping losses.
“To be abundantly clear, without creditor funding to progress the claims detailed in the body of this report, no dividend is expected to be declared to any class of creditor,” administrator Bill Karageozis from insolvency firm DVT Mcleods wrote in the administrator’s report, ABC reports.
Karageozis found debts owed to customers, who are considered “unsecured creditors”, totalled more than $1.42 million.
Traveldream’s website previously displayed this message. (Source: Traveldream)
The report also found Traveldream “may have been trading while insolvent” since June 2024 and did not hold customer funds in a trust account.
The Australian Travel Industry Association has urged Aussies to only book with accredited businesses. Traveldream had its accreditation cancelled in March 2020.
“It is critical that travellers only book through an ATIA Accredited travel business,” ATIA CEO Dean Long said.
“Accreditation is the best way to ensure you are dealing with a trusted, professional, and financially sound operator. If a business is not accredited, you should ask why.”
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