AVG Travels enters liquidation a week after customers report cancelled tours
An Australian travel company selling heavily discounted international holidays has collapsed, leaving customers scrambling and their plans in disarray.
www.abc.net.auShort answer: AVG Travels has entered liquidation in May 2026, with liquidators appointed to assess the firm and halt operations, leaving many customers affected or seeking refunds. Several outlets report ongoing inquiries from affected travelers and caution for future bookings with budget operators.
Details
- What happened: AVG Travels, a Melbourne-based budget travel agency, collapsed into liquidation in late May 2026 after customers reported cancellations or trips marked as “under review” just days before departure.[1][3][4]
- Who’s handling it: Insolvency firm McGrathNicol was appointed as the liquidator to take control, review finances, and determine the best way to protect stakeholder value, including contacting affected customers.[2][1]
- Impact on customers: Ongoing inquiries from more than 100 customers, numerous trip cancellations or disruptions, and inability of AVG to issue refunds due to lack of funds; deposits and payments are treated as unsecured credits in the liquidation process.[1][2]
- Industry context: Reports note the case underscores the importance of booking with licensed operators and understanding booking protections, especially for budget travel brands that have faced accreditation or financial concerns in the past.[3][8]
- Public communications: AVG Travels initially stated it was working to resolve issues and maintain service continuity, but liquidators have halted operations and will provide updates directly to clients as available.[2][1]
What this means for you (if you’re planning travel)
- If you booked with AVG Travels or similar budget operators, monitor updates from the appointed liquidator and your payment method’s protections (credit card chargeback rights or travel insurance where applicable). Refunds are unlikely through AVG itself given the liquidation, and unsecured creditors may recover only some amounts depending on liquidation outcomes.[3][2]
- For future bookings, consider:
- Choosing established, licensed operators with clear financial safeguards,
- Checking ATIA or equivalent accreditation status and any consumer protections offered,
- Paying with methods that provide buyer protection, such as credit cards with chargeback rights or travel insurance that covers supplier insolvency.
Illustration
- Example scenario: A customer paid a deposit for a package and later received a cancellation notice as AVG Travels entered liquidation. With the company halted, the customer is treated as an unsecured creditor, and refunds depend on the liquidation’s outcome and available assets.[2][3]
If you’d like, I can:
- Compile a concise briefing with current contact points for the liquidator and key consumer protections in your region (Finland/EU consumer travel protections vs. Australian framework),
- Or help you draft a plan to pursue refunds through your card issuer or travel insurer, tailored to your exact booking details.
Citations
- AVG Travels enters liquidation and liquidator appointed; impact on customers and ongoing communications.[1][2]
- Details on refunds and creditor status in liquidation.[2]
- Industry context and safeguards for travelers regarding booking protections.[8][3]