Aussies owed thousands as student travel firm STA Travel goes into administration amid pandemic
STA Travel is the latest tourism business to fall victim to COVID-19.
The travel agent, which specialises in trips for students and young people, is in the hands of administrators.
The travel company once had 70 stores across Australia, but this year reduced shops to just 27.
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STA Travel has gone into administration STA Travel
STA originally stood for Student Travel Australia; the firm was started by two Aussie backpackers in the 1970s and spread around the world.
The administration will likely affect travellers who are waiting for refunds on cancellations because of the pandemic.
Sharon Di Sciascio is out of pocket by $6000 for the overseas trip of a lifetime COVID-19 cancelled.
Hristina Milenkovska fears she'll never get her money back. Nine
She has been trying to get a refund from the firm for five months.
"Trying to get hold of anyone is just impossible," she said.
Would-be honeymooner and now mother-to-be Hristina Milenkovska said she has received only empty promises instead of the $10,000 she's owed.
Would-be honeymooner and now mother-to-be Hristina Milenkovska said she has received only empty promises instead of the $10,000 she's owed. Nine
"They said 30 days, then they said 90 days, so my 90 days is conveniently on the fifth of September and they've filed for bankruptcy now so I'll probably never get any of my money back."
The advice is to contact airlines and hotels directly, even ask credit card providers for chargebacks.
About 180 staff are expected to lose their jobs.
The firm's parent company, based in Switzerland, said in a statement COVID-19 had "brought the travel industry to a standstill".
"Sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.
Sharon Di Sciascio is out of pocket by $6000 for the overseas trip of a lifetime COVID-19 cancelled. Nine
"As a consequence, STA Travel Holding AG, is filing for insolvency."
The firm's Australian website says it is down for maintenance.
The British site has a statement saying: "To our valued customers. Due to the recent announcement that STA Travel UK has ceased trading, unfortunately our travel experts are unable to assist you at this time.
STA Travel has gone into administration. Nine
"Please be assured that if you had a previous booking with us, or hold a live booking, you will receive further communication in the coming days.
"We are sorry for the inconvenience and the limited information available to you at this time."
Earlier this year the ACCC said the Federal Court ordered the firm to pay $14 million in penalties for making false or misleading claims when advertising its MultiFLEX Pass product.
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