Hundreds of holidaymakers were thrown into uncertainty after a Melbourne-based travel company abruptly cancelled their international travel plans. Cancellations of flights, accommodation, and guided tours were communicated on the day of departure, leaving customers scrambling for answers. Refund requests were met with silence from AVG Travels, despite the company's claims of offering "24/7 support."
Sydney resident Hong Lam, 65, was organizing a girls' trip for her mother and 30 aunties, scheduled to depart last Friday. The group had collectively paid approximately $60,000 for their 11-day tour to China, which included a visit to see the terracotta warriors. However, late on Wednesday night, some members of Lam's group received cancellation alerts via email, while the rest received no communication at all.
"It was supposed to be the trip of a lifetime for our family, yet instead of boarding our flight, we were left at home with no communication, no answers, and no support," Lam told 7NEWS.com.au. "This experience has caused enormous stress, disappointment, and emotional distress to our family and friends."
Lam had been desperately trying to confirm travel itineraries for weeks before the departure date and has spent every day since then on the phone to AVG Travels, but received little clarity. Because the itineraries were never delivered, Lam's aunt, who needed the documents to apply for a Chinese visa, paid an additional $100 for an urgent visa appointment and lost $500 worth of unpaid leave.
During one unproductive phone call with AVG Travels, Lam refused to hang up because weeks had passed without proper responses. She said she was called "selfish" by the supervisor and was threatened with, "If you keep asking, you won't get your refund."
Accreditation Suspended
The Council of Australian Tour Operators (CATO) cancelled AVG Travels' accreditation membership following numerous complaints to the Australian Competition and Consumer Commission (ACCC). CATO told 7NEWS.com.au that AVG Travels had informed the council it was "working through its operational issues."
"On becoming aware of complaints against AVG Travels this week, we moved quickly to review their accreditation status. That review has resulted in the immediate suspension of AVG Travels' CATO accreditation," said CATO general manager Mira Yates. CATO noted that its membership is designed to support professionalism, accountability, and consumer confidence, and that AVG Travels had successfully completed the accreditation process in July 2025, including a financial health assessment.
Hundreds of Travellers Report Chaos
A social media support group for affected customers amassed 563 members within a week, with many posting about cancelled travel and others with upcoming bookings desperately seeking answers about undelivered itineraries. Many have called the company a scam, though several members confirmed they received refunds or partial refunds after chasing the company.
Mathew Phin, who created the support group, said that while it is a relief for those who got their money back, AVG Travels "can never fully compensate for the stress (customers) endured and the money spent on preparations." He added that the cancellations left no time to organise alternative trips, resulting in wasted annual leave and business days.
Consumer Rights Under Australian Consumer Law
The ACCC generally does not comment on specific matters, but a spokesperson told 7NEWS.com.au: "Consumers have rights under the Australian Consumer Law (ACL) if a travel service is delayed or cancelled. These rights are known as consumer guarantees, and include that services must be fit for a particular purpose and provided within a reasonable time. If a business sells a travel service that doesn't meet one of the ACL consumer guarantees, a consumer is entitled to a solution, which may include a replacement or refund."
AVG Travels Apologises
After weeks of customer complaints and being contacted by 7NEWS.com.au, AVG Travels released a customer support update on Friday. The company said it would like to "sincerely apologise" and explained that cancellations were caused by operational disruptions and exceptionally high travel demand during the peak period. AVG Travels stated that it has already provided refunds to over 100 customers and will offer full refunds to all affected customers within 30 business days.
The company is also offering customers the option to rebook their China tours for later in the year, during the off-peak season, or in 2027 at no extra cost. Alternatively, customers can choose trips to Vietnam or Sri Lanka on select dates, with a $500 voucher for use during the tour package, valid until May 2028.
AVG Travels stressed that customers do not need to visit its Melbourne office for a refund, but will consider travel reimbursement requests on a case-by-case basis for those who have travelled to Melbourne to claim refunds in person.
