Australian youth tour company Topdeck has faced backlash after changing its refund policy to offer travel credits instead of cash refunds for trips cancelled due to the COVID-19 pandemic. The company initially promised cash refunds for trips booked before June 30, 2020, but later updated its policy retrospectively.
Customers who cancelled their trips under the original policy were shocked to receive emails stating they would only receive a travel credit voucher, plus an extra $100, valid until December 31, 2021. Claudia Jones, a New Zealander who cancelled her $4,000 tour in early March, was initially told in writing she would get a cash refund.
Topdeck stated that vouchers are generally the most popular option and that the company would be flexible if customers cannot use the voucher by the expiry date. However, affected customers have lodged complaints with the Australian Competition and Consumer Commission (ACCC).
The ACCC noted that offering vouchers is within guidelines, but companies cannot apply new policies retrospectively. The Council of Australian Tour Operators has advised against cash refunds to preserve cash flow, while competitor Contiki also offers vouchers but without retrospective changes.
