Watch The Shonky Deals
Sun Herald
Sunday March 12, 1989
THE recent collapse of several travel firms has forced people to become wary of discount air tickets and the agents offering them.
Discount tickets are not necessarily suspect, nor are the agents who sell them. But as the recent collapses have shown, you need to watch for warning signs while shopping around for bargains.
Discount fares are not new and you break no law when buying them. The airline-approved full or promotional fare is sold at a discount by agents who hope to make up through high volumes of sales what they lose by discounting fares.
Airlines sometimes have preferred agents who receive special rates because of the volume of tickets they sell.
Discounting does not only mean the fare is cheaper, it also means being able to get around booking restrictions, like not having to stay the length of time stated in the published fare conditions or being able to buy an advance purchase fare closer to the departure date than stated in the conditions.
However, do not expect similar fares if you go directly to the airlines. They are bound by various international agreements to minimum selling prices when dealing direct with the public.
It is worth shopping around for the best deal because potential savings can be considerable, especially for families.
John Hutchinson, of Sydney-based Walker Wayland, chartered accountants handling the liquidation of recent collapses in the travel industry advises travellers to deal only with licensed travel agents.
The Travel Compensation Fund will reimburse travellers for money lost because of the collapse of a travel agent. But the fund does not cover losses caused by the collapse of a tour operator once the agent has passed over the money for your ticket.
Nor does the fund cover the inconvenience caused by having to prove your claim, file for compensation or the inevitable wait for your money.
How then does a person take advantage of discount fares, but avoid the risks of getting involved with an agency about to go bust?
Clients cannot look at the accounts or the cash position of a travel agent but they can inquire about how their money is accounted for. One question to ask is whether the agent keeps separate trust accounts for clients' funds.
Travel agents are required by law to be licensed and clients should only deal with agents licensed by the NSW Government.
Licensed agents have to display a sticker on the front door of their premises. This licence provides the consumer with protection if a travel agent fails.
Beware of agents who ask you to pay the full airfare months in advance of travel without getting the ticket. On most fares, final payment two weeks before departure should be adequate.
It has been known for unscrupulous agents to quote a low fare, get a deposit, and then tell the client that all the seats are booked and offer another fare at a higher price. The client must then decide to pay the higher price or lose the deposit.
If an agent advises you of a price increase, you can always check the details with the airline or another agent.
Deposits are now a normal part of the travel business and most require a holding deposit when making a booking.
The deposit is normally around $100 and is not usually refundable, but you should check with the agent all the conditions applicable to the deposit and whether it is refundable if you cancel or change the booking.
Check that the agent lists all airlines at good prices, not only the poor quality airlines.
Most people don't want to fly very cheaply.
Be wary if tickets take a long time to be issued or you are promised the tickets just days before departure. If you have doubts about your booking, check with the airlines.
And don't accept your ticket without a flight coupon for every section of your journey.
* Check The Sun-Herald's new Skywatch section for top air fare deals.
© 1989 Sun Herald
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