Corporate Travel Management Refunds Clients After Failing to Pass on Supplier Rebates

Corporate Travel Management is refunding clients after it was revealed the company had failed to pass on margins and rebates relating to suppliers including hotels and airlines. The Brisbane-based travel giant is in the process of refunding customers after pocketing tens of millions of dollars in margins on air tickets and rebates from suppliers that should have been passed onto clients. The overcharging method was revealed in an announcement to the share market and brings the total of remediation to almost $246 million.

It is the latest headache for Corporate Travel, after the ABC earlier this month revealed a massive overcharging scandal relating to refugee accommodation in the UK. That scandal included invoicing the UK government more rooms than a hotel actually had, double-billing on some hotels, or charging for exclusive use of hotels when no exclusivity existed. New chief executive Ana Pedersen said almost 80 per cent of the refunds had been agreed to or were near finalisation. "We recognise this has been a challenging period for investors, clients, partners and our people, and we are grateful for their ongoing support and confidence," she said.