Issues & Trends – May 2010
Unlicensed Expedia under fire for not complying with
Australian travel agent regulations
WEBJET wants to know why Expedia has been allowed to set up an Australian operation without being licensed in this country. AFTA is also seeking answers.
Both Webjet managing director David Clarke and AFTA chief executive Jayson Westbury were measured in their comments to travelBulletin but there is real anger surfacing in the industry that Expedia, owned by giant US corporation Microsoft, sees no need to comply with Australian law.
It emerged earlier this month that Webjet has used freedom of information (FoI) legislation to query the regulatory authorities about the issue.
The action was revealed earlier this month when the Victorian Civil and Administrative Tribunal (VCAT) listed a private conference between Webjet and Victoria’s Department of Consumer Affairs (which administers travel agent licensing in the state).
Asked about the conference, Clarke confirmed that it concerned an FoI request by Webjet seeking to establish what discussion there has been within the department about Expedia trading without a license and whether there had been any discussion of action that might be taken.
The department has refused to make the information available to Webjet which led to this month’s conference between the company and the department, under the auspices of VCAT, in an attempt to break the deadlock.
Clarke refused to disclose what took place during the conference.
Westbury said he is seeking a meeting with Expedia in Australia which states on its website: “Expedia.com.au is operated by US-based Expedia Inc. While Expedia Inc is not currently eligible for a travel agent’s licence in Australia or to participate in the Travel Compensation Fund our services are backed by the resources of the world’s largest online travel company.”
But Westbury said: “From what I can see, they should be (licensed in Australia). I am speaking with them over the next week to establish what they are planning to do. Until I have had that discussion it is difficult to make any formal comment.”
Observers note that the Australian operation of Zuji, which is also foreign-owned, complies with Australian licensing law. The controversy over Expedia’s attitude to Australian licensing coincides with the company launching advertising themed “Where you book matters” (See page 20) and the release of the Travel Compensation Fund annual report.
The TCF report demonstrates that where you book matters – last year 3532 Australians received $4.2 million thanks to the protection offered by the agent licensing.
At press time, Expedia Australia managing director Dan Lynn had not responded to email and telephone enquiries from travelBulletin.