Under-fire travel agent Flight Centre has confirmed it will waive all cancellation fees where third party suppliers have cancelled their services because of the Covid-19 pandemic.
A revised cancellation and refund policy issued by the company on Saturday also provides for an additional credit of up to $200 per person (based on the booking amount) for customers who leave funds on file for future bookings.
"The decision to waive fees will impact our business, nevertheless we have heard your feedback and we believe this step is the right one for the current economic conditions where stand-downs and job losses are a daily occurrence for many Australians," the company said in a statement.
Flight Centre said the revised waiver followed ongoing discussions with customers and regulators, including the ACCC, and will apply retrospectively to bookings cancelled as a result of Covid-19 on or after March 13, 2020 for which a Flight Centre cancellation fee was charged.
It does not apply to fees or conditions that airlines and other third party suppliers impose.
The company was under fire for offering credits rather than refunds for cancelled trips.
It said its staff would continue to perform the time-consuming task of processing refunds and following up with individual suppliers on customers' behalf. Refund requests will be processed in date order, The Travel Daily reported.