Your rights when booking travel in Australia including refunds, compensation and disputes.
Key information
If a business sells a product or service that doesn’t meet consumer guarantees under Australian Consumer Law, the business must offer you a solution.
Whether you’re entitled to a refund will depend on whether your problem is major or minor.
You may be able to claim compensation if you experienced loss or damage caused by a product or service not meeting a consumer guarantees and the loss or damage was “reasonably foreseeable”.
Your rights under law
Australian Consumer Law
Australian Consumer Law guarantees your rights when you buy goods and services in Australia or through an Australian company. Most products and services in Australia come with an automatic consumer guarantees that they will work and do what you asked for. This includes travel services.
If a 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, or refund.
What solution you can claim depends on the type of problem you are facing.
Contracts
Any business, including travel services, must honour the terms and conditions of any contract you agree to when you buy a product or service (such as a flight or hotel stay). This contract is often included in the fine print when you buy a product or service.
Make sure you check the contract terms and conditions to see the policy on refunds, cancellations and credit vouchers. The business can not change the terms of the contract once you have agreed to them.
Refunds
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 repairs, replacements and refunds.
Whether you are entitled to a refund will depend on whether the problem is major or minor. This does not have to do with the cost or size of the product or service, but how severe the problem is.
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 time
- 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 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.
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.
When you can’t claim a refund
If your problem doesn’t fall under the definition of major or minor, you may not be entitled to a refund. A business can refuse to give you a 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.
For more information, see repair, replacement and refund.
Credits instead of a refund
What are your credit voucher rights?
If you are entitled to a refund, 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 repair, replacement 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 pandemic.
A business must not:
- claim you have no right to compensation
- deny responsibility for foreseeable losses you experienced 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.
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 often help.
Still no luck? Contact Fair Trading
If you’re unable to resolve the matter with the business, 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.
The role of Fair Trading
Fair Trading provides information to customers and traders to help them resolve disputes. When disputes can’t be resolved, you can submit a complaint to us.
What happens when a complaint is made?
The complaint will be reviewed to decide:
- what the issues are
- what options will help resolve the complaint
- if a law has been broken
- if the matter would be better handled by another organisation.
If it's better for the matter to be handled by another organisation, we will tell you which organisation and provide you with contact details.
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.