Hundreds of Australian travellers left out of pocket by the collapse of Melbourne-based AVG Travels are calling on the federal government to strengthen consumer protections, with affected customers launching a petition demanding urgent regulatory reform.
The petition, initiated by customer Arun Jhunjhunwala, argues that the collapse of AVG Travels exposed major gaps in Australia’s travel industry oversight after the company continued accepting bookings for more than three years after losing its accreditation with the Australian Travel Industry Association (ATIA).
“We are a group of Australian families who have lost thousands of dollars after booking holidays through AVG Travels,” Mr Jhunjhunwala said in the petition.
“Thousands of Australian families across the country are believed to have lost millions of dollars after this agency continued taking bookings for over three years after losing its industry accreditation.”
AVG Travels was placed into liquidation on 26 May 2026. Documents lodged with ASIC show the company owes approximately $4.3 million to nearly 800 creditors while holding only about $83,000 in assets.
Customers say they were never informed that the company’s ATIA accreditation had been cancelled in August 2022.
“AVG Travels had lost its industry accreditation over three years before we booked. We were never told. Nobody warned us. We booked in good faith, trusting that we were dealing with a legitimate and credible travel business,” Mr Jhunjhunwala said.
His extended family group of 45 travellers across 15 families lost approximately $60,000 paid for a China holiday scheduled for March 2027.
The petition calls on the Australian Government, the ACCC and industry bodies to investigate the circumstances surrounding AVG Travels’ collapse and introduce stronger safeguards for consumers.
Among the proposed reforms are mandatory disclosure when travel agencies lose accreditation, a ban on agencies taking new bookings after losing accreditation, stronger protections for customers paying by bank transfer or debit card, and the creation of a mandatory compensation fund similar to protections available in other industries.
“This is a legal gap that must be closed. Australian families deserve real protection, not a voluntary tick on a website,” the petition states.
Many affected customers have shared stories of substantial financial losses.
Sandya, who booked a China tour through AVG Travels, said customers had been left without refunds, information or support.
“We booked a tour to China with AVG, and the company took our money and disappeared. Many customers, including us, have been left without refunds, information, or support. This is unacceptable, and we are seeking justice and accountability for everyone affected,” she said.
Retiree P. Jayasurita said he lost about $2,000 for a China tour scheduled to depart on 10 June 2026.
“Unfortunately, paid from bank transfer and the rest from credit card. We have to pay the interest to credit cards and hardship condition increased. We need our refund back to our bank. No solution yet, desperate only,” he said.
Shifali, another customer, said the collapse highlighted the need for stronger transparency and accountability.
“Families save for months or years for holidays, and there should be stronger protections in place when businesses lose accreditation or go into liquidation,” she said.
For some customers, the losses were far greater.
Deb said her family lost $28,000 on a planned trip to Japan.
“Having used AVG for previous trips we were confident we were dealing with a reputable local organisation, so we are completely devastated by this,” she said.
Rajendran, who had booked a retirement trip to China, said he felt betrayed.
“Money gone and no tour. What hurts is that the tour company knew it can’t do the tour at that price and simply attracted unsuspecting travellers to scam their hard-earned money and this happens in Australia,” he said.
ATIA has said consumers should ensure travel agents are accredited, but customers argue the current voluntary accreditation system failed to protect them.
“This isn’t just about AVG — it’s a systemic failure in the way the travel industry is regulated in Australia,” Mr Jhunjhunwala said.
“When these companies collapse, people are left as unsecured creditors with little to no chance of recovering their funds.”
The collapse has reignited calls for the return of a national consumer protection scheme similar to the former Travel Compensation Fund, which compensated travellers when licensed travel agencies became insolvent before being abolished in 2014.
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