Relax - Customers stranded without air tickets

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SINGAPORE - Holiday booked.

Suitcases packed.

Return flight checked.

The Koh family had even bought their air tickets two months in advance, to ensure that dad, mum and their three children would be able to travel to China together in November.

But three hours before take-off, engineer E. Koh, 43, and his florist-wife, 44, received a nasty shock.

The travel agency staff member who had handled their holiday arrangements told them the flight was overbooked and wanted them to postpone their departure.

The Koh family are among a group of holiday-goers whose travel plans were disrupted when Shangrila Travel in People's Park Centre failed to provide the air tickets they had paid for.

Mr Koh recalled: "She told us not to go to the airport. Instead, she wanted us to change the date of departure."

Stunned, Mr Koh went to the airport anyway. He said: "I was hoping it was a bad joke because it was our departure date."

To his dismay, the airline check-in staff said their names were not on the list.

Seats were still available - at a price.

The family could fly if they paid $1,200 each - more than double what the family of five had forked out previously. An upset Mr Koh refused.

They went to the travel agency at People's Park Centre, with suitcases in tow.

Didn't answer phone

"The staff didn't answer the phone, so we had no choice but go in person to sort things out," Mr Koh added. "But the place was locked and no one seemed to be in."

Desperate to get to China in time to meet their relatives and tour Yunnan together, Mr Koh ended up handing over another $4,216 in airfare to another travel agency.

He also went to the police and lodged a complaint with the Small Claims Tribunal.

A police spokesman confirmed that a report was lodged against the travel agency for breach of agreement.

The tribunal ruled in Mr Koh's favour - the travel agency has to pay him the $4,216 by Feb 7. But he has yet to hear from them.

Like Mr Koh, LaSalle student Zhan Bowen, 18, and chef Wu Wenbin, 30, almost had their holidays grounded too.

Mr Zhan paid $590 to fly to Shanghai on Dec 5. He was supposed to return on Jan 4.

But in late November, just a week before he was due to fly off, Mr Zhan said a Shangrila Travel employee called him.

"The ticket was not confirmed. She later revealed that the ticket had been cancelled."

Shocked, Mr Zhan called the airline. Staff there told him they cancelled the ticket because the travel agency had not paid up.

To make matters worse, he had also booked a return flight to Harbin for his cousin from Shangrila Travel.

In all, Mr Zhan lost more than $1,300. His family ended up booking another flight in late November for him.

"I went to Shangrila Travel because my friend said their service was quite good," he said.

"When I asked the woman about compensation, she said I needed to wait till January as the management was 'in discussion'."

That was the last Mr Zhan heard from her, despite repeated calls and visits to the premises.

Last August, Mr Wu forked out $1,100 in airfare for his wife and himself.

The couple were supposed to fly to China this month, but they got wind in November that Shangrila Travel had left some customers stranded.

The airline told Mr Wu that there were no bookings under their names.

"It's tough buying tickets again, as the period (we wanted to travel) is peak season. Our plans have been ruined," Mr Wu said. "I never thought this can happen as Singapore's laws are so strict."

When The New Paper went to the agency located in the mall's basement in November, it was brightly lit, with brochures advertising destinations like Beijing and Korea placed along the corridor.

But no one was in.

When TNP went there last week, the shop lot was empty.

A shopkeeper, who wanted to be known only as Mr Tan, said groups of people started milling around outside the travel agency in late November.

"I told the people hanging around they don't have to wait because nobody is going to turn up.

"But every day, different people come by to ask where the staff are," he said.

Mr Tan said the agency was manned by two women, a female boss and her employee.

They moved into the unit in 2011.

A woman who identified herself as Ms Tay later told TNP on the phone that the travel agency had been closed temporarily as its staff were busy running errands during lunch.

After giving a quote for a return flight to Beijing, she told this reporter to transfer the money electronically to the agency.

Still operating

When TNP visited one of the directors at her residential address, a family member insisted the agency was still operating.

The Consumers Association of Singapore (Case) executive director Seah Seng Choon said the watchdog has received 10 cases against the agency to date.

He told TNP: "They are all due to the fact that the travel agency has failed to honour the contract of agreement and failed to provide consumers with air tickets, even though payment was made."

Last year, Case received over 1,400 travel-related complaints. (See report on right.) Mr Seah said affected consumers can approach Case officers for advice on how to file a claim against the company or seek legal recourse.

"Case actively monitors the consumer marketplace for unfair practices committed by businesses," he added.

The watchdog can ask businesses to sign voluntary compliance agreements (VCA) to stop their unfair practices.

If the businesses refuse to sign the VCA, Case can also take a court injunction to prevent them from further engaging in unfair practices.

What affected consumers can do

Besides making a police report, what else can affected consumers do?

They can also lodge a complaint with the Small Claims Tribunal (SCT).

These are the civil remedies available, said MrTan Hee Joek from law firm Tan See Swan.

If the company ignores the SCT order to repay, the consumer can apply to the subcourt bailiff's section to enforce the order.

This is a legal process where consumers can seize the company's assets and sell them to get repayment. But this will involve some hassle.

Said Mr Tan: "The affected consumer would have to do a lot of paperwork and go to the courts to get the order."

The creditor can also apply for a garnishee order, through which a creditor can seize funds from a debtor's bank account.

The cases highlighted here fall in a grey area, said Mr Tan, somewhere between a civil dispute and criminal cheating.

While he recognised that police resources are finite, Mr Tan added: "This sounds like a scam and it would be good if the police can do something about it."

That's why Mr Suresh Divyanathan, the head of law firm Oon & Bazul's commercial arbitration practice group, said it was better for consumers to liaise directly with the airlines.

"If they opt for a travel agent, always pick those who are reputable and have been around for a long time".

Tips for travellers

Take up travel insurance to cover medical expenses, loss of luggage and trip cancellation.

Ensure all agreements and contracts with the agent are made in writing.

Be wary of travel agencies that ask for additional payment.

Always have the travel agent issue a proper receipt and ensure the purpose of any additional payment is in writing.

Engage the services of accredited travel agencies that have the CaseTrust mark.

Consumers can file a claim against the business under the Consumer Protection (Fair Trading) Act if an unfair practice has been committed.

They can go to Case for help on disputes or go to the Small Claims Tribunal to file a claim.

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