Travel Agent Won’t Refund Your Cancelled Trip? Letter of Demand + ACL

You booked a $6,400 Europe trip through a travel agent. The airline cancelled the flights. The tour operator cancelled the tour. You rang the agent and were told: “We can offer you a credit valid for 12 months, minus our $600 cancellation fee.” You did not cancel anything. Why are you paying a fee and taking a credit you may never use?

You are right to be angry. Here is how to turn it into a refund.

Who owes you what

There are two relationships:

1. You and the supplier (airline, cruise line, tour company). When they cancel, their own terms and the ACL generally require a refund or a remedy.
2. You and the agent. The agent holds your money and any refund from the supplier on your behalf. If the airline refunded the agent, that money is yours. Keeping it is not a “credit”, it is withholding your money.

What the ACL says about the agent

• The agent’s own service (booking, managing the trip) must be delivered with due care and skill (section 60). Refusing to pass on a refund is not.
• Telling you “you’re only entitled to a credit” when the supplier has refunded is potentially misleading conduct (section 18) and a false representation about consumer rights (section 29(1)(m)).
• A “cancellation fee” that applies when the supplier cancels, not you, is likely an unfair contract term (section 24) and unenforceable.

The ACCC has published guidance on this exact issue and has taken action against travel businesses for it.

Ask the agent one question in writing

“Has the supplier refunded any part of my booking to you? If so, how much and when?” They must answer honestly. If they have received the refund, they are holding your money. If they have not, ask them to confirm the supplier’s refund status and to pursue it, which is their job.

Chargeback in parallel

If you paid the agent by credit card, request a chargeback for “services not provided” through your bank. Time limits vary but 120 days from the date the service was due is common. Do it now; do not wait for the agent.

Evidence

• Booking confirmation and itinerary
• The cancellation notice from the airline or tour operator
• Payment receipts
• Every email with the agent, especially the “credit only” and “fee” messages
• The agent’s terms and conditions

The Letter of Demand

Demand the full refund of all amounts received from suppliers, plus a refund of any fee charged for a cancellation you did not make, within 14 days. Cite sections 18, 24, 29 and 60. State that you will file at the tribunal, report to the ACCC and your state fair trading office, and, if the agent is a member of ATIA (formerly AFTA), lodge a complaint with them.

Agents work on thin margins and heavy regulation. A formal letter that names the right sections is usually enough.

Claim Done drafts your Letter of Demand for $49. Done in about 5 minutes. You approve it before it is sent.