Holiday plans can change, often in ways beyond our control. While most airlines, cruise lines and tour operators provide an excellent service, it’s important to know your consumer rights if things go wrong.
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Refunds
Most products and services come with consumer guarantees that they will work and do what you asked for. This includes travel services.
What are your refund rights?
If a travel business sells a product or service that doesn’t meet consumer guarantees, the business must offer you a solution.
A solution can include a repair, replacement and refund.
Refunds for minor problems
You are not entitled to a refund immediately if the problem is minor and can be fixed easily in a reasonable time. Instead, you must give the business an opportunity to solve the problem.
If the business refuses to offer a solution or it is taking too long, then you can choose to:
- cancel the service and get a refund
- get someone else to fix the problem and ask the business to pay reasonable costs.
Example of a minor problem
Peter books a weeklong cruise. When he checks into his room, he notices the lights in the room aren’t working. Before demanding a refund on the room, Peter must allow the cruise line to offer a solution. The cruise line repairs the broken lights on the same day and Peter enjoys the rest of his cruise.
Refunds for major problems
If the problem is major or cannot be fixed, you can choose to:
- terminate the contract for services and request a full refund
- seek compensation for the difference between the value of the services provided compared to the price you paid.
Generally, a problem is considered ‘major’ when:
- the product or service doesn’t do what it said it would do, and can’t be easily fixed within a reasonable time
- it would stop someone from buying the service if they’d known about it
- it creates an unsafe situation.
Example of a major problem
Jessica books a weeklong cruise. She has a booked a family room but when she checks in she is only provided a room for two people. The cruise is fully booked and there are no other rooms available until the next cruise in two weeks’ time.
Jessica would not have booked the cruise if she knew she would be unable to get a family room. The cruise line must offer Jessica a refund as the service is not doing what it said it would do and they are unable to offer Jessica a solution within a reasonable time.
For more information, see repairs, replacements and refunds.
What should the business do?
If you are entitled to a refund, the business must:
- give you a free-of-charge refund
- make sure any refund is paid within a reasonable timeframe
- offer the refund first, before they can offer any other alternatives, such as a credit
- take steps to recover money from suppliers and, where it should be returned to a customer, return the money as soon as possible
- communicate regularly with you about the timing of the refund and the steps being taken.
A business can only refuse to give you a free replacement or refund if:
- you simply changed your mind
- you misused the product or service in a way that contributed to the problem
- you asked for a service to be done in a certain way against the advice of the business, or were unclear about what you wanted
- a problem with a service was completely outside of the business’ control.
What is considered a 'reasonable time'?
What is ‘reasonable’ will depend on the nature of the service, the difficulty of the task and other relevant factors.
Example of an unreasonable time
Martin’s flight is cancelled. A reasonable time for a replacement flight would be as close as possible to the timing of the first flight. Offering Martin a replacement flight a month later would not be considered a reasonable time.
Example of a reasonable time
Bridget’s cruise is cancelled and she is offered a cruise credit. A cruise credit should have an expiration date long enough to allow Bridget to use them. A reasonable time here would be three years as required by Australian Consumer Law.
Credits instead of a refund
What are your credit voucher rights?
A business can only offer you a credit voucher if:
- this is the form of payment you used to buy the product or service e.g. using airline credits or travel points
- you agree to a credit note after the business offered a full refund to your original payment form.
Example of an inappropriate credit voucher to a customer
Using her credit card, Sarah bought flights with an airline. On the day her flight was due to depart, the airline cancelled her flights due to an aircraft shortage. The airline did not book Sarah onto the next available flight or offer Sarah a refund but instead offered her a flight credit voucher.
As the airline did not meet consumer guarantees and deliver the service Sarah paid for or offer a solution, they must offer Sarah a refund of the full amount in the same form of payment (her credit card) before they can offer her a credit voucher.
Can you decline a credit voucher and be refunded?
In general, you do not have to accept a credit voucher if you are entitled to a refund or your complaint is covered by consumer law. Instead, you can insist on a repair, a replacement or a refund.
Find out more about your rights as a consumer
Visit the repairs, replacements and refunds page for more information on your consumer rights if a product or service doesn’t meet the consumer guarantees.
Are you entitled to compensation?
If a problem with a flight, cruise or travel tour causes you to suffer loss or damage, you may have a right to compensation.
Compensation helps cover any costs you paid because of the problem with the product or service. It should put you back in the position you would have been in if the problem hadn’t happened.
Compensation can be given in addition to a product or service replacement or refund.
Example of compensation for a customer
An airline representative made a booking error and cancelled John's flight. The airline was unable to provide a replacement flight within a reasonable time and John was required to book a new flight with an alternative airline. The new ticket cost $900.00 more than the original purchase. John may be able to seek compensation for the cost of the new flight or the difference paid for the new ticket.
What should the business do?
A business must pay for loss or damage that is:
- caused by the failure to meet a consumer guarantee
- reasonably foreseeable i.e, not caused by something outside of human control, such as a cyclone.
A business must not:
- claim you have no right to compensation
- deny responsibility for foreseeable losses you suffered from using the business’s product or service.
How compensation is claimed:
- Determine the amount of compensation required to return you to the financial position you were in before the problem happened
- Gather a receipt or proof of purchase
- Contact the business, verbally or in writing, to explain the problem and ask for compensation
- You may also consider a refund, replacement or repair.
Find out more about rights as a consumer
Visit the repairs, replacements and refunds page for more information on your consumer rights if a product or service doesn’t meet the consumer guarantees.
Booking through a third party
Am I still entitled to a refund even though I booked through a third party?
You have the right to a repair, replacement or refund from the business when the product or service you purchased does not meet the consumer guarantees. This applies to any flight, cruise or tour you booked through travel agents or online booking platforms operating in Australia or booked on an Australian website.
Example of a refund after booking through a third-party
Samantha books her flights to Bali through a travel agent. The airline cancels her return flight. Samantha is entitled to a replacement flight within a reasonable time or a refund from the airline. Samantha can choose to request a refund through her travel agent or deal directly with the airline. Samantha chooses to approach the airline directly and requests a refund, as there are no replacement flights available. The airline agrees as they did not deliver the service she paid for and could not offer a solution.
How to resolve a dispute
Before contacting Fair Trading, it is important you give the business the opportunity to fix the problem.
Three steps to resolve a dispute
1. Check your contract’s terms and conditions
Before you talk to the business about your problem, make sure you are clear on the contract’s terms and conditions. For example, the contract may tell you when you are entitled to a refund or solution.
2. Talk to the business
Once you’ve checked your contract, contact the business and explain the problem. If the matter is complicated and not urgent, you could write an email or letter. We have tips and sample letters to help you.
3. Contact an advocacy group or industry body
If you’re unable to resolve the matter with the business, there are advocacy groups who can help resolve disputes. If they exist, an online search is a quick way to find them.
Many businesses have a representative body, for example, the Australian Federation of Travel Agents or Airline Customer Advocate. These bodies can also often help.
Still no luck? Contact Fair Trading
If you’re unable to resolve the matter with the business or ombudsman, you can contact us for help on 13 32 20 or make a complaint online.
We provide information to consumers and traders to help them resolve disputes. Only when parties are unable to resolve a dispute should a complaint be lodged.
Frequently asked questions
Do you have a specific problem? Before you reach out, try our frequently asked questions below to see if we have the answer.
The airline cancelled my flight, what can I do?
You have consumer rights if a flight is delayed or cancelled by an airline, with no reasonable replacement or refund offered.
This applies to:
- flights within Australia
- international flights departing Australia
- international flights to Australia booked through an airline’s Australian website.
These rights apply regardless of whether you book the flights:
- directly with the airline
- through a travel agent, or
- through a third party or intermediary, such as a booking platform or travel package provider.
The consumer guarantee that services are provided within a reasonable time may be relevant if a flight is delayed or cancelled. This can depend on:
- the length of the delay
- whether the delay or cancellation was within the airline’s control
- whether the airline moved you to a different flight, and if so the timing of the different flight.
If your replacement flight is not within a reasonable time, the airline must give you the choice of a different replacement flight or a refund.
If you had to book a flight with another airline because the first airline had no reasonable replacement flights, and the flight delay or cancellation was within the first airline’s control, you also may have a right to compensation from the first airline. This would be for the difference in cost of the second airline’s flight on top of any refund you would receive for the cancellation of your first flight.
My cruise or tour has been cancelled. Am I entitled to a refund?
It is important you first check the terms and conditions of your contract with the business. These terms and conditions determine what the business can do if your cruise or tour is cancelled.
After reviewing the terms and conditions, you may wish to discuss your options with the business. An honest discussion usually results in the best outcome for everyone.
Your options may be:
- a refund. If you had a right to a refund under the terms and conditions when you made your booking, businesses cannot refuse you a refund.
- a credit or voucher. These allow you to use the money you already paid to the cruise line at a later date. Any credit notes or vouchers should have an expiration date that is long enough to allow you to use it, the standard is three years.
If you are unable to resolve the problem with the business, please go to How to resolve a dispute for more information.
My flight was cancelled because of COVID-19. Can I receive a refund?
If your flight was cancelled due to COVID-19, you may be entitled to, but are not guaranteed, a refund. This will depend on the law at the time of the cancellation and the terms and conditions you agreed to when you bought your ticket.
Carefully read the terms and conditions to understand your rights. If you had a right to a refund due to COVID-19 cancellations when you purchased your ticket, businesses cannot refuse you a refund.
Future travel tip
Check your terms and conditions before you book as some airlines have begun to include clauses that exempt refunds due to COVID-19 cancellations.
You may want to take out a travel insurance policy that covers COVID-19 cancellations to ensure you’re covered for potential COVID-19 related disruptions to your travel plans.
I purchased travel insurance, but my claim has been refused. What can I do?
Travel insurance can cover the loss of the deposit or cancellation fees, medical expenses, personal liability, loss or theft of baggage and travel documents.
Each travel insurance policy differs in the level of cover it provides. All travel insurance providers must give you a Product Disclosure Statement which explains when you are covered and eligible to claim against the policy.
If your travel claim for loss, damage or reimbursement has been denied, generally you must appeal the decision with the insurer by requesting a review of the decision. Consumers can request a review of the decision made.
After the insurer has had the opportunity to review the initial decision, a final decision is made. If you are still dissatisfied with the outcome, you can contact The Australian Financial Complaints Authority (AFCA), a dispute resolution scheme that deals with complaints from consumers about financial products and services, including insurance.
Fair Trading can’t help with these matters, as AFCA is the appropriate body to handle insurance claim denial disputes. Contact AFCA on 1800 931 678 or visit the AFCA website for more information.
I received the wrong advice from airline staff and lost money. What are my rights?
If you received incorrect information regardless of whether it was intentional or not, you may have consumer rights under the Australian Consumer Law. Information provided by businesses is covered by consumer guarantees. You may be able to seek a solution or compensation from the airline for your losses. These losses will have to be proven to the airline by the way of receipts or other forms of evidence.
Firstly, contact the airline to try and resolve the problem before contacting the industry body or Fair Trading.
If you cannot reach a resolution with the airline, you can contact an industry body or make a complaint with Fair Trading.
My luggage was lost or damaged on my journey and the airline refuses to pay.
If your luggage has been lost or damaged by the airline you flew with, you may be entitled to compensation depending on the nature of the damage.
You should first seek to resolve the problem directly with the airline carrier before contacting an industry body or Fair Trading.
If you cannot reach a resolution with the airline, you can contact an industry body or make a complaint with Fair Trading.
Some airlines will not take responsibility for luggage damage such as:
- wear and tear, i.e., cuts, dents and scratches
- damage that results from overpacking.
If your damage is more severe, you may be entitled to compensation. The amount will depend on the damage and whether your travel is domestic or international.
Domestic travel compensation
If your damage is more severe and your travel is domestic, airlines must compensate you for lost or damaged luggage under the Civil Aviation (Carriers' Liability) Act 1959 or relevant state legislation.
An airline’s liability for loss or damage is limited to AUD$1,600 per passenger for checked luggage and $160 per passenger for your carry-on.
International travel compensation
If your damage is more severe and your travel is international, your airline may be governed by two international treaties.
The Warsaw Convention of 1929 applies if both the country of departure and country of final destination are members. If it applies, the airline is liable for up to 250 francs (about AUD$30) for each kilo of your checked baggage or 5,000 francs (about AUD$600) for your carry-on baggage.
The Montreal Convention of 1999 applies if both the country of departure and country of final destination are members. If it applies, the airline is liable for up to 1,131 Special Drawing Rights (SDRs) per passenger (about AUD$1,735). This is the total amount you could receive for both checked and carry-on baggage.
Claiming compensation for damaged luggage
If your damage is severe and you are entitled to claim for compensation, this claim must:
- be undertaken within seven days of the damage occurring for international flights
- be undertaken within the timeframe set by your airline carrier for domestic flights
- only cover the costs you faced because of the problem with the service.
If you are claiming outside of this period, you may not be entitled to compensation. Some airlines have a shorter claim period for domestic flights (for example, three days).
My flight has been cancelled by the airline and I used Frequent Flyer points to make the booking. Can I request my Frequent Flyer points be reinstated?
You have consumer rights if a flight is delayed or cancelled by an airline and there has been no reasonable replacement offered. You are entitled to request reinstatement of the frequent flyer points used to make the booking.
You should always check the terms and conditions of the Frequent Flyer program before making the booking.
Contact the airline to try and resolve the problem before contacting the industry body or Fair Trading.
If a resolution is not reached with the airline, you can contact an industry body or make a complaint with Fair Trading.
I used my Frequent Flyer points to make the booking and I need to cancel the flight. Can I request my Frequent Flyer points back?
If you are the one cancelling the flight the terms and conditions (T&Cs) determine what options may be available to you in the event of cancellation. This will depend on the T&C’s you agreed to when booking your ticket. You will need to contact your service provider to discuss the options available to you.
Remember if you change your mind, you may not be entitled to claim a solution.
If you are unable to resolve the problem with your service provider, you should obtain independent legal advice to understand more about your rights under common law, contract law and the Australian Consumer Law.
When I am travelling on a cruise, am I still protected by consumer laws when making purchases in another country?
If you leave Australian waters, the normal consumer guarantee protections under the Australian Consumer Law no longer apply. While many countries have their own consumer protection laws, it is important travelers understand these differ on international waters.
Always consider whether you need to purchase the item immediately, or if it is something that can wait to be purchased upon returning to Australia.
Do you still need help?
If you can’t find the information you’re looking for, select from one of the options below and get in touch.
Ask a question
Call us on 13 32 20 between 8.30am and 5pm Monday to Friday or submit an online enquiry any time.
Lodge a complaint
If you’re unable to resolve the matter with the business or relevant industry body or organisation, you can contact us for help on 13 32 20 or make a complaint online.