Collapse of STA a big blow for travel sector
THEY offered great value-for-money deals, encouraging young travellers to see the world. However, after almost 50 years in the sector, Swiss company STA Travel filed for bankruptcy a week ago, yet another victim of the Covid19 lockdown.
Crushing any hopes of imminent refunds, the National Consumer Commission moved quickly to quell talk of compensation for consumers, issuing a statement that customers were last in line when a company declared bankruptcy.
It’s a bitter pill for customers, who have complained for months about STA Travel’s refusal to issue refunds.
Instead, it had insisted that customers accept vouchers for future travel, which will now probably prove worthless.
The response on STA’s Facebook page is mixed, ranging from messages of support for the staff and praise for agents’ professionalism, to outrage at the company for its silence on its imminent closure, accepting bookings to the very end and lack of clarity on hoped-for refunds.
The travel provider had advertised packages to “really amazing Thailand” on a #BookNowPayLater basis for a 2021 “vacay” priced from R15 290, Mozambique for R5 799, and “Basic Bali” from R10 990 as recently as August 19 – the day before STA Travel Holding, the Swiss parent company, filed for insolvency.
Staff are believed to have been kept in the dark, and by midweek had not received their salaries. STA could not be reached for comment.
In a brief statement on its website, it said: “Due to the recent announcement that STA Travel South Africa has ceased trading, unfortunately our travel experts are unable to assist you at this time.
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.”
STA Travel, which originally stood for Student Travel Australia, later rebranded as the Student Travel Association. It specialised in long-haul, adventure and gap-year travel.
The company’s demise sent shock waves throughout the travel sector, with more casualties inevitable.
Restrictions keep us apart
On Friday, World Tourism Organisation secretary-general launched a report on the impact of Covid-19 on the sector, noting that tens of millions of direct tourism jobs were on the line globally, with lost opportunities for vulnerable populations and communities who stand to benefit most from tourism, and the “real risk of losing vital resources for safeguarding natural and cultural heritage across the world”.
It called for travel restrictions to be eased or lifted in a timely and responsible manner and for policy decisions to be co-ordinated across borders.
Last week, the Association of Southern African Travel Agents said STA’s demise signalled the importance of announcing a definitive date for the reopening of international travel to ensure the sector’s survival.
Asata said that while STA was not a member of the association, the “industry as a whole has made every effort to assist customers to reschedule their travels with little to no compensation since the travel ban was implemented in March, as international outbound travel remains closed”.
Refunds remain a challenge but customers who had paid for travel with their cards could apply for a charge back, a reversal of a transaction that is initiated by the bank at the request of the cardholder.