Website Travel connects travel agents and tour operators for the purposes of facilitating consumer bookings and payments between travel agents, consumers and tour operators.
In April 2020, Adventium announced it would withhold funds received through its Website Travel platform that were owed to tour operators, citing the COVID-19 pandemic as its reason for doing so.
The ACCC then commenced its investigation following concerns raised by a number of tourism operators, particularly in Queensland.
“We were concerned that Adventium was withholding payments from tour operators at a time when COVID-19 had already severely affected their cash flow and commercial viability,” ACCC Commissioner Sarah Court said.
“In some instances, Adventium withheld the payments for almost 12 months, in circumstances where those tour operators had already provided their travel services to consumers and incurred costs.”
“We recognise that Adventium has now made all outstanding payments to affected tour operators, and we took this into account in deciding to conclude our investigation.”
The ACCC says that Adventium has also taken steps to avoid a similar situation occurring in the future, by ensuring that funds obtained from travel agents for payment to tour operators are held separately from other funds.
According to the Website Travel website, over 3,400 operators and over 600 travel agents across 11 countries use the Website Travel platform.
In 2020, the ACCC refocused its enforcement and compliance efforts on competition and consumer issues arising from the pandemic, including taking action to address any behaviour by businesses which seek to exploit the pandemic either to unduly enhance their commercial position or harm consumers.
The ACCC says it is continuing to closely monitoring the impact of COVID-19 on the tourism industry, to ensure that consumers and small businesses such as tour operators receive the protections afforded to them by the Australian Consumer Law.