Australians who lost more than $1 million on prepaid “dream” holidays have been told not to expect to see their money again.
Melbourne-based agency Traveldream — registered as Australian Travel Deals Pty Ltd and known for selling discounted flights, cruises, and international tour packages — collapsed in April and went into voluntary administration.
A new administrator’s report has revealed Traveldream paid another Melbourne-based company, My Travel Experience (MTE), about $1.22 million to secure flights, accommodation and tours for customers.Â
However, MTE failed to pass the money on to suppliers and has now gone into external administration itself, leaving customers with little chance of recouping their losses.
Tourism agent may have taken customers’ money while insolvent
“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,” concluded administrator Bill Karageozis from insolvency firm DVT Mcleods.
Mr Karageozis also found debts owed to customers — considered “unsecured creditors” — totalling more than $1.42 million.Â
The report found Traveldream “may have been trading while insolvent” since June 2024 and did not hold customer funds in a trust account.
Company directors found guilty of allowing a company to trade while insolvent can face civil or criminal penalties and be banned from managing companies.
Dozens of dream holidays cancelled
ABC News has spoken to dozens of travellers affected by the collapse; many of whom spent tens of thousands of dollars on once-in-a-lifetime trips only to discover their bookings had been cancelled.
Gold Coast couple Maxeen and Greg Powell were left out of pocket after their dream holiday all but evaporated. They had been planning their bucket-list trip for 15 years, including visits to Alaska, Canada, and Las Vegas.
Maxeen and Greg Powell, from the Gold Coast, saved for years to go on their holiday. (Supplied)
The Powells booked through Traveldream in March last year, after reading favourable reviews, and paid $16,000 in January.
Just four weeks before their scheduled departure, they discovered Traveldream had collapsed.
While their flights still went ahead, they had to pay another $6,000 to rebook the same tours and accommodation they had already paid Traveldream for.
“We had to find other accommodation, our Rocky Mountains tour wasn’t covered and no show in Vegas,” Ms Powell said.
Maxeen Powell had to re-book and pay for hotels again, following the collapse of Traveldream. (Supplied)
“Emails to the travel company weren’t answered, the phone wouldn’t pick up. The next thing we heard was from the liquidators.”
Despite the chaos, they went ahead with the trip.
“We had a great time, but in the back of my head, it was ‘what’s next? What’s next?’ The whole time,” she said.
She said travel insurance did not cover their losses, as is common with matters related to insolvency.
“I’m very hesitant about ever booking another holiday again,” she said.
Maxeen Powell went ahead with her “dream” trip to the US and Canada, despite the collapse. (Supplied)
Directors and companies under scrutiny
Since March, Traveldream’s sole director has been Christopher Banson, who also co-owns Saltwater Properties — a company operating high-end holiday rentals across Australia and holding stakes in more than 30 other businesses.
His company, Traveldream operated as a retail travel agency, sourcing flights, accommodation, cruises and tours from third-party providers including My Travel Experience (MTE), and selling them directly to customers as package deals.
“It’s [Traveldream] ability to ensure successful delivery of travel services was dependent on the performance and conduct of those wholesalers,” the administrator’s report said.
The company operated as a retail travel agency, sourcing flights, accommodation, cruises and tours from third-party providers. (Youtube)
Traveldream’s major wholesaler MTE, trading as Travel on Demand Pty Ltd, is owned by Melbourne-based businessman Russell Masterton. That company was placed into external administration two weeks ago, four months after Traveldream’s collapse.
MTE sold tours to Africa, Asia, Europe, the Middle East, North and South America. The company’s website has now been shut down.
The liquidator’s report found MTE was paid $1.22 million to secure flights, accommodation, and tours for customers.
Mr Masterton said his company stayed open to help customers after Traveldream closed. Â He referred ABC’s questions about finances and refunds to the companies’ liquidators.
The ABC has contacted Mr Banson for comment.
A gap in consumer protection
Australia once had a national consumer protection scheme for travel bookings, known as the Travel Compensation Fund (TCF), which compensated customers if a travel agent became insolvent. Membership was mandatory for licensed agents, but the scheme was abolished in 2014 under the Abbott government, with travellers told to take our their own travel insurance.
Kim Arnold, director of policy and education at the Australian Restructuring, Insolvency and Turnaround Association, said a liquidator can pursue directors personally for debts incurred while the company was insolvent.
“Either they reach a settlement, or the court makes an order and then the director has to pay that money into the liquidation,” she said.
Travel company collapses leaving some holiday-makers stranded
The creditor’s report said the liquidation process could take a year to finalise and whether customers see any money back will depend on debt recovery and potential legal action.
The Australian Travel Industry Association (ATIA) said the situation served as a reminder that accreditation was a key safeguard for travellers, with members required to meet strict financial, insurance and training standards.
“It is critical that travellers only book through an ATIA Accredited travel business. 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,” ATIA CEO Dean Long said.
The agency said ATIA accreditation was reviewed annually and about 16 per cent of applicants were rejected for failing to meet the standards.
Traveldream.com.au had its accreditation cancelled in March 2020 and has not been a part of ATIA since.