Agents brace for Kumuka fall-out

Agents brace for Kumuka fall-out
By admin


Agents are readying themselves for the full impact of the collapse of adventure travel firm Kumuka, but the Australian Federation of Travel Agents is hopeful of an "orderly" exit.

AFTA chief executive Jayson Westbury did not expect the fall-out would be on the same scale as that wreaked by the folding of Air Australia earlier this year, which he described as “one of the worst collapses in our history”.

“It’s a little difficult to ascertain at the moment, but agents won’t be stung as badly as they were with Air Australia,” he told Travel Today.

While airline payments are generally made by credit card, with funds transferred on a regular basis, many Kumuka customers may have had longer term payment arrangements. That would mean their money could still be held by the agency.

Westbury was further encouraged by the fact that tours with departures up until July 22 will still run.

“At least that’s a sign they are trying for an orderly departure,” he said.

Since news of the collapse broke, other adventure travel firms have rallied round affected travellers and agents by discounting alternative travel options.

“That’s typical of the industry,” he said. “They should be congratulated for that, especially given the commercial implications of such offers.”

Meanwhile, Travel Compensation Fund chief executive Glen Wells told Travel Today the consumer protection body had been “inundated with calls”.

He expected the fall-out would be substantial but stressed many of Kumuka’s clients would be covered by the fund.

He advised those affected to claim with the TCF, and said he expected the majority of applications would be processed within five to seven days.

“It’s a large company and a lot of the packages are quite substantial,” he said.

Flight Centre said "hundreds, rather than thousands" of its clients had been affected.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]