KPMG issues Excite FAQ

SPECIFIC concerns of travel agents impacted by the collapse of Excite Holidays (TD 10 Jan) are being addressed in a new document released by the company’s Administrators from accounting firm KPMG overnight.

In particular, the Administrators have confirmed that not all forward bookings have been paid for by Excite Holidays, and agents whose bookings are fully paid will be individually notified.

The document also explains that the Administrators were appointed “because Excite Holidays in Australia is unable to meet its financial commitments”.

The Administrators are now in control of the Australian companies used by Excite, and are conducting an urgent assessment of their finances.

“Due to the Group’s financial position, the Administrators had no choice but to immediately cease operations in Australia upon appointment on 10 Jan 2020,” the document notes.

The appointment of Voluntary Administrators is only to the Australian entities at this stage, with the urgent review also assessing the position in relation to non-Australian businesses - including some in Athens, Bangkok & Singapore (see p1).

“To the extent that Excite Holidays has not paid the supplier for a booking you have paid for, you may be a creditor,” however at this stage it is unclear whether agents will be creditors of an overseas entity, or one of the Australian companies - and that also applies to any commissions, refunds or rebates owing.

Agents will not receive refunds if they cancel existing Excite Holidays bookings, because “all amounts owing are currently frozen pending the outcome of the Voluntary Administration”.

In the case of pre-existing bookings, travel agents will continue to be able to log into the Excite Holidays platform to check on the status.

Bookings will be classified as: - Confirmed (unpaid), meaning the agent has not paid Excite Holidays, in which case service providers should be contacted to cancel the booking;

- Confirmed (paid), meaning the agent has paid Excite, and the service provider should be contacted to confirm if payment has been received or not;

- Cancelled, meaning the agent requested cancellation and the request has been processed; and

- Cancellation Pending, meaning the agent has asked that a booking be cancelled but the request has not been processed, and the service provider should be contacted to confirm details.

The Administrators say the return to creditors is uncertain at this stage, with the potential outcome to be detailed in a report due to be sent to creditors early next month.

The full FAQ is available for download by CLICKING HERE.