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Over 500 complaints on sudden closure of travel agencies since 2012: CASE

SINGAPORE — Consumers made more than 500 complaints over the sudden closure of travel agencies over the past three years, said the Consumers Association of Singapore (CASE) today (July 31).

Screengrab from Asia-Euro Holidays' website.

Screengrab from Asia-Euro Holidays' website.

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SINGAPORE — Consumers made more than 500 complaints over the sudden closure of travel agencies over the past three years, said the Consumers Association of Singapore (CASE) today (July 31).

“This is indeed a serious concern,” said the consumer watchdog, which has proposed to the Singapore Tourism Board (STB) to consider mandating, via the Travel Agents Act, that all travel agencies provide a security bond, pegged to a percentage of the agency’s yearly revenue,

“With a security bond in place, consumers who had previously purchased a travel package from a travel agent would at least be able to claim for part of the amount paid for the travel package,” said CASE president Lim Biow Chuan.

CASE said it “understands that STB is studying a range of approaches, and will consult with the relevant stakeholders for their views”.

Providing an update on the abrupt closure of travel agency Asia-Euro Holidays last month, CASE said consumers have lodged 91 complaints with the association, involving about S$224,607 in monetary claims. The complaints involved the agency’s failure to honour travel packages the consumers had bought.

CASE said it has contacted airlines and the National Association of Travel Agents Singapore (NATAS) to assist affected consumers.

“A few of the airlines have replied that they are prepared to consider goodwill refunds to the passengers affected by the closure of Asia-Euro Holidays Pte Ltd”, CASE said today. It advised ticketed consumers to contact their respective airlines to make alternative travel arrangements or request for a refund.

CASE also wrote to NATAS, which Asia-Euro Holidays was a member of, requesting that they allow affected consumers to transfer their tour packages to another NATAS member at a discounted rate.

“When Five Star Tours Pte Ltd closed down last year, several NATAS travel agents came forward to assist affected consumers. We hope that NATAS would consider doing the same,” CASE said.

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