AVG Travels has collapsed into liquidation, turning cheap overseas holiday deals into a costly shock for Australian customers who are now chasing answers, refunds and clarity over cancelled tours.
The Melbourne-based travel agency built its appeal around heavily discounted international packages, promoting trips to destinations across Asia, Europe, Africa, the Middle East and the Americas. But for many customers, the promise of affordable travel unravelled only days before departure, when bookings were cancelled, changed or placed “under review”.
Liquidators from McGrathNicol were appointed on May 26 and have taken control of AVG Travels’ affairs. The insolvency firm said it is carrying out an urgent review of the company’s financial position and business operations, while all ongoing operations have been suspended.
That means customers waiting for flight details, tour documents or refund updates are now dealing with a formal liquidation process rather than a normal travel agency dispute.
According to ABC News, more than 100 customers contacted the broadcaster after its earlier reporting on AVG Travels, with many saying their overseas holidays were disrupted at short notice.
The uncertainty became visible outside the company’s St Kilda office in Melbourne, where frustrated travellers arrived looking for answers and refunds. Instead, they found closed doors and a notice confirming the appointment of liquidators.
Online, the anger has grown quickly. A Facebook support group for AVG Travels customers has attracted more than 860 members, with people sharing similar stories of missing travel documents, sudden itinerary changes and fears their money may not be recovered.
ASIC records show AVG Travels Pty Ltd is owned by Duc Tiem Dao, a Vietnamese national living in Melbourne. On its website, the company described itself as “proudly Australian-owned” and claimed it had taken more than 200,000 travellers around the world.
The business said it began as an online travel agency in Vietnam in 2012, opened a Melbourne office in 2015, and later expanded with offices in Japan and the United Kingdom.
Before entering liquidation, AVG Travels said it took customer concerns seriously and blamed “industry-wide and operational pressures” for itinerary adjustments. The company said it was working with global partners to provide fair resolutions, but the liquidation has left affected customers facing a much harder path.
One affected traveller, 71-year-old Gold Coast resident Mary Tait, had booked a 16-day China tour with a travelling companion. The pair paid about $3,400 each for a package that was expected to include Beijing and Shanghai, but they never received final flight details or a confirmed itinerary.
“It’s been very scary and sad,” Ms Tait said, adding that they had been left in limbo before learning the trip was unlikely to go ahead.
The collapse has also raised questions about how carefully customers checked AVG Travels before booking. The Australian Travel Industry Association said AVG Travels had been removed from its accreditation scheme more than six years ago after failing to meet required financial and ethical standards.
ATIA chief executive Dean Long called the liquidation a “sorry day” for customers and urged Australians to use accredited travel businesses when booking major trips.
For travellers, the case is a warning about low-cost holiday packages that appear attractive but may carry hidden risk. Before paying thousands of dollars for international travel, customers should check whether the agency is accredited, read refund conditions closely, keep written records and consider payment options that may offer chargeback protection.
The pressure is not limited to travel agencies. Australia’s wider travel sector has been dealing with rising costs, thinner margins and route changes, including recent airline disruption covered by Swikblog in Rex Airlines Cuts Tasmania Routes and Mildura Flights Amid Rising Fuel Costs.
For AVG Travels customers, the next step is likely to be slow and uncertain. Liquidation does not automatically mean refunds will be paid. Customers may need to contact McGrathNicol, their bank or credit card provider, and their travel insurer to understand whether any recovery option is available.
What began as a promise of cheaper holidays has become a reminder that in travel, the lowest price is not always the safest deal.
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