Australian travellers who collectively lost millions of dollars after their travel agency collapsed are calling on the federal government to overhaul consumer protections in the travel sector.
melbourne-based agency AVG Travels, which sold discounted international tour packages to Asia, Europe and Africa, was placed into liquidation in May.
New documents lodged with ASIC show the company owes $4.3 million to nearly 800 creditors — including customers, employees and suppliers — while holding just $83,000 in assets.
Liquidator McGrathNicol told those affected that AVG Travels was unable to provide refunds.
Travellers reported being dumped by AVG Travels just days before their overseas holidays. (Supplied)
The collapse has prompted a petition with more than 1,000 signatures calling for stronger safeguards for those who book through travel agencies.
Among the signatories are AVG Travels customers who are urging the federal government to reinstate a national consumer protection scheme for travel bookings, known as the Travel Compensation Fund (TCF).
The scheme, once mandatory for licensed travel agents, would have compensated travellers for insolvency, but was abolished in 2014 to cut red tape.