Aussies devastated as travel agency collapses, leaving holidays in ruins

Dozens of Australian travellers have had their holiday dreams shattered and lost tens of thousands of dollars following the sudden collapse of online travel agency Traveldream.

Traveldream, operated under the business name Australian Travel Deals Pty Ltd, went into administration on April 28, ceasing operations immediately and leaving customers stranded across the globe – or worse, never even departing on their long-planned trips.

The financial fallout has been severe, according to news.com.au, who spoke to several impacted customers, including a mother and her two daughters who lost $33,000, and a group of Australian travellers who arrived at their overseas accommodation only to be told no booking existed in their name.

Among the most devastating stories is that of Donna Lamberth and her husband, who lost $15,500. The Queensland couple had saved for two years to embark on the “trip of a lifetime” through North America, including a cruise in Alaska and a stop in Las Vegas. After fully paying for the holiday in December, Ms Lamberth was stunned to learn only a small deposit had been made on their cruise booking.

“I burst into tears,” she said. “My bags were packed. I haven’t even unpacked my bags yet.”

Ms Lamberth and her husband were forced to cancel their entire two-month trip.

At least 75 customers are confirmed to have lost money due to the collapse, according to Bill Karageozis of insolvency firm Mcleods, who has been appointed administrator. He expects that number could rise to as many as 100 creditors. The company’s total debt is currently estimated to be under $1 million, and it has no tangible assets to recoup losses.

Some impacted travellers have managed to salvage elements of their trips by contacting airlines and cruise companies directly. Among the suggested providers are Qantas, Singapore Airlines, Royal Caribbean Cruises and Holland America Cruises.

One group of 300 Australians booked through Traveldream for a North American tour set to begin on May 19 now face uncertainty. Lorraine Micairan, a Sydney mother of five, is among them. She and her husband paid $12,000 for their trip and discovered many of their bookings were never paid for, despite receiving an itinerary and booking confirmations.

“When I checked in online it said it’s cancelled,” she said. “Qantas told me there was no payment.”

Thanks to last-minute scrambles and additional out-of-pocket expenses, Ms Micairan and her travel companions were able to rescue their trip. Still, she says the experience has left them financially and emotionally drained.

Meanwhile, other customers were not so fortunate. Friends Michelle Brown and Tammy Meurant, along with their husbands, landed in Vancouver only to find their hotel booking had been cancelled just days earlier – likely by a third party due to non-payment by Traveldream.

“They said: ‘Sorry, we don’t have a booking,’” Ms Brown recounted. “It was cancelled on the 6th. We arrived on the 9th.”

The group had to scramble to find alternative accommodation via Airbnb and are bracing for more disruptions throughout their trip.

Traveldream was founded in 2016 and led by Melbourne-based director Christopher Banson, who has not publicly commented on the situation. Banson also operates Salt Water Hotels and Resorts – a separate travel business with 30 properties nationwide – which remains unaffected by Traveldream’s demise.

Another shareholder in the failed company, Travel Dream Australia Pty Ltd, is reportedly owed $49,000. That company is solely directed by Paul Mercuri, Traveldream’s co-founder, who was no longer involved in the business at the time of its collapse.

Administrators are now urging affected customers to act swiftly in identifying any prepaid travel services that can be salvaged. For many, however, the damage is already done.

“I’m going to have to save again,” Ms Lamberth said. “It’s a lot of money to lose.”

Image: Traveldream