Travel Fraud: Go to Paradise, Not to the Cleaners!

By: AARP Education & Outreach | Source: AARP.org | April 6, 2006

Are you looking for a bargain to finance your dream vacation? It’s fine to look for travel bargains. But don’t let your dream turn into a travel nightmare by accepting all offers at face value. If a deal sounds too good to be true, it almost certainly is. You need to look closely at all offers and read the fine print. You can avoid becoming a travel victim by being an aware traveler.

Think twice before falling for phony and expensive deals like these:

Instant Travel Agent Offers

The deal is that you can qualify for all the wonderful discounts and upgrades available to travel agents just by sending money for some training material and a travel agent ID. The problem? The travel industry doesn’t recognize the ID. You'll spend your money but you won't get any discounts.

Another twist is for you to sell travel packages to other “instant agents” and get a share of their earnings. This type of multilevel marketing is illegal. The Federal Trade Commission reports that in one of these schemes, 43,000 made nothing or lost money; 4,000 made less than $50, and only six made $100,000.

Vacation Certificates

They promise you a bargain-priced vacation. However, the certificates don’t mention the extra expenses. When you add up all the fees and extras, you'll wind up paying more for this “bargain” than for a conventional travel package. Your airfare may be free, but your anticipated $50 hotel room costs you $350.

Free But at What Price

You take that free or low-cost trip, but then find that your room is cramped and grimy, the food terrible or non-existent. The promoter then magically finds an upgrade at an outrageous price.

A variation on this scam is you take the bait and fly to Florida or some other state. When you try to pick up the vouchers for the rest of your trip, you’re trapped into lengthy presentations on timeshares. If you don’t listen, you don’t get the vouchers. And the push is on to persuade you to buy a timeshare.

Down-payment Downer

You get a notice that you have won a super travel bargain. All you have to do is make a deposit with your credit card and select your preferred travel dates. But, once you make the deposit, the promoter strings you along, citing various problems in selecting dates until the deal expires or the phone number is disconnected. Getting a refund is next to impossible.

At the Fair

You register for a free trip at a booth at the state fair, shopping mall, or sports event. What you have won is a high-pressured telephone pitch and a deal for off-season or weekday travel to remote locations.

How to Protect Yourself Against Fraud

Common sense and a bit of independent research can help protect you against travel fraud.

• Be wary of “great” deals.
• Resist high-pressured sales pitches. No genuine offer "expires at midnight." This is just a ploy to get your money before you have time to check out the company. 
• Ask detailed questions about promotions. A reputable company will be glad to give you all the information you need to make a good decision.
• Get all the details, total cost, refund and cancellation policies in writing before you pay any amount.
• Never give your credit card number over the phone unless you know the person or company you are dealing with and your have thoroughly checked out the offer.
• Never be rushed into sending money by overnight express or by wire.
• Buy travel services only from a business you know to be reputable. Check out the company's reputation with the Better Business Bureau and your state's consumer protection agency.
• If in doubt, say “no.”
• Gear up for a great vacation courtesy of the Federal Trade Commission.