Case calls for security bond to be imposed on travel agencies

Singapore

THE Consumers Association of Singapore (Case) has suggested a change in the law to better protect travellers against the sudden closure of travel agencies.

In an update on the Asia-Euro Holidays saga on Friday, Case said that it had proposed to the Singapore Tourism Board (STB) to consider making travel agencies provide a security bond.

An amendment to the Travel Agents Act could be made for the bond, which should be "pegged at a certain percentage of the travel agency's yearly revenue".

Case president Lim Biow Chuan said: "With a security bond in place, consumers who had previously purchased a travel package from a travel agent would at least be able to claim for part of the amount paid for the travel package."

The association said that over the past three years, it had received more than 500 complaints over the sudden closure of travel agencies.

In Asia-Euro's case, there were 91 complaints as at July 30 - or two months after the agency's closure - involving more than $224,000 in monetary claims.

The complaints involved the agency's failure to honour the travel packages purchased by its customers.

Case said that it had requested that the National Association of Travel Agents Singapore (Natas) offer assistance to affected travellers, by allowing them to transfer tour packages to another Natas member at a discounted rate.

This was done for Five Star Tours customers last year, and Case hopes that Natas will come forward once again, since Asia-Euro was a Natas member.

The consumer association also contacted airline companies to consider refunds for the affected travellers.

"A few of the airlines have replied that they are prepared to consider goodwill refunds to the passengers affected," it said.

"Ticketed consumers are advised to contact their respective airlines (if known) to make alternative travel arrangements or request a refund. Consumers who have difficulty in doing so may wish to approach Case for further assistance."