Collapse of online accommodation company leaves thousands of tourists stranded

Gold Coast-based company Accommodation 1 collapsed on May 19 and was placed in the hands of liquidator Jason Bettles and Ivor Worrell of insolvency firm Worrells Solvency & Forensic Accountants.

The company traded through two online portals: the website ourholiday.com.au (which has since been taken down) and through gifts2U.com.au on the auction site eBay Australia. The site focused on Gold Coast apartment blocks such as Circle on Cavill, the Q1 and Chevron Renaissance.

According to a letter to customers sent by Bettles and seen by SmartCompany, customers who booked accommodation for after May 19 have been cancelled, with the liquidator saying the company "is not in a position to refund any payments made by customers".

The liquidators have advised customers who booked accommodation through eBay to seek refunds through PayPal or through their credit card provider.

However, if those avenues are unsuccessful, the outlook is grim.

"If you are not able to arrange a refund through those parties then we enclose a Formal Proof of Debt form for you to complete and return to us to formalise a claim in the liquidation. However, at this stage it appears unlikely that there will be a return from the liquidation."

Customers on eBay caught out by the collapse have left angry messages in feedback and forum areas and it appears few have had much luck in getting a refund from PayPal.

"I made a booking for July 2010 and stand to lose hundreds," wrote one disgruntled customer.

"Pretty annoyed they continued to trade and take our money as well as many others! I think many are still unaware and they have taken thousands."

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written by mtatravel, May 26, 2010

The Australian Federation of Travel Agents tag line of "Without a Travel Agent you are on your own" proves true yet again...

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written by Mike Williams, May 26, 2010

It is a shame to see another business slip into oblivion, which leads me to wonder once more: what should business owners be measuring to see when value is being destroyed?

AND: when does the destruction of value in a business reach a terminal velocity?

I know there are formal definitions for insolvency and financial risk, but what is more important to a business owner is when should they start taking serious corrective action to prevent the loss of value.

Perhaps one of the big learning points to come out of the GFC is a greater awareness of what a business owner should be monitoring to prevent loss of value and ultimate failure.