TOURISM industry players are now saddled with claims from consumers after failing to make refunds because of cancellations brought about by the Covid-19 pandemic.

Industry players told The Malaysian Insight tour operators are now being taken to the Consumer Claims Tribunal where customers believe they can get more money back.

The Malaysian Association of Tour and Travel Agents (Matta) Sabah chapter’s Kennedy Fung said agencies should avoid ending up in a tribunal as much as possible.

“We urge travel agencies and members to discuss refunds with guests to avoid getting involved in the consumer arbitration tribunal,” Fung said.

Customers who file for arbitration are those who are unwilling to negotiate with travel agencies and want to recoup more money than the refund, he said.

But these are only a few customers.

“Travel agencies must try their best to meet the requirements of customers for refunds, cancellations. It is not too many of them who file with the arbitration tribunal. It is just a few customers who want to claim more money.”

This is with consumers who know they can get more compensation if they win their case at the tribunal.

“Generally, the amount refunded is not large and a travel agency will give a direct refund if it is able to,” he said, noting that another way to deal with cancellations is to offer a deferred booking.

“Some guests know that they can ask for a higher amount after filing with the arbitration tribunal, and that the tribunal will protect their interests. It is the travel agencies who taste the bitterness of loss and have to suffer in silence,” said Fung.

Dispute-resolution lawyer Lee Wing Hong said the Consumer Protection Act 1999 allows consumers who bring disputes to the tribunal to claim a maximum of RM25,000.

Lee, of Marcus Tan & Partners, said both parties to a refund dispute must first check the sales contract to confirm whether there is a force majeure clause, which will exempt the company from obligations in the event travel is made impossible because of a disaster or war.

Malaysian Inbound Tourism Association (Mita) president Uzaidi Udanis said dealing with cancellations and avoiding refunds is easier for some tourism sectors than others.

“For hotels, most customers will agree to defer their check-in date. Airlines also usually agree to change the validity period of a ticket.

“However, it is more difficult when it comes to tour itineraries, especially those booked through an online travel agency. We understand that many tourists are having difficulty claiming a refund,” Uzaidi said.

Malaysian Chinese Tourism Association president Albert Tan explains why full refunds for some types of packages, such as those that include airline tickets, are difficult.

“It’s not that travel agencies don’t want to refund, but if the airline does not refund us, we cannot refund the customer. The airline may only allow the ticket date to be deferred to 2021.”

When asked about bankruptcy among travel agencies, Fung said there is little news of operators in Sabah being forced to declare bankruptcy, probably because the threshold is higher now at RM100,000 than RM50,000 previously.

“Some travel agencies just close down in order to stop the bleeding.”

He said data is hard to collect as there are agencies that are not Matta members. Many others are also trying their best to serve and maintain good ties with customers.

Matta secretary-general Nigel Wong said data on the amount of refunds requested since the movement-control order (MCO) in March was hard to collate and tabulate, as company rules and sales agreements were involved.

“Customers wanting a refund must read the travel agreement signed by both parties. Many guests request 100% refunds but there are many factors why the industry is unable to give full refunds. We hope the government can assist us,” said Wong. – November 2, 2020.