Vacation Scams Spike In Summer

June 4, 2007

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With the unofficial start to summer, the travel industry is warning of an increase in vacation-related scams, which cost consumers an estimated $10 billion a year. Out of the 3,900 industries it monitors, the Better Business Bureau says the travel industry consistently ranks near or in the top 25 for number of complaints.

“The BBB System continues to see vacation and travel-related fraud cases in every one of our 128 BBBs across the United States and Canada,” said Steve Cole, president and CEO of the Council of Better Business Bureaus. “Before booking travel plans, consumers need to do their research and check with the BBB for trustworthy advice on dependable businesses to keep from getting burned this summer.”

Among the recently reported travel-related fraud:

• A San Diego-based firm selling discounted vacation packages on eBay to Hawaii, Mexico and the Virgin Islands scammed consumers across the U.S. out of several hundred to more than $5,000 throughout 2006 and early 2007.

• Travelers were tricked with bait and switch tactics and ended up paying much more for the vacation packages than they planned. After paying for the vacations, some consumers also found that rooms, travel, and other reservations were made with invalid credit cards, or never booked at all. Consumers in the Savannah, Georgia area spent over $11,000 with a company conducting seminars in local hotels that promised travel incentives, discounts and assistance in becoming a “travel agent.”

• An investigation found that the Branson, Missouri-based company routinely charged consumers membership, administrative, and renewal fees that greatly exceeded any discount on vacation packages, and that much of the information ‘sold’ by the company could be found elsewhere free-of-charge to consumers.

Travel experts say consumers should gather information before spending any money or making any commitments. Get names of airlines, hotels, car rental companies and travel providers. Consider contacting these businesses directly to verify arrangements.

Always ask for confirmation of your travel arrangements in writing and ensure you receive copies of cancellation and refund policies.

Also, it’s a good idea to pay with a credit card and avoid deals that require you to book 60 days in advance. Credit card companies may allow consumers to dispute a charge within 60 days of purchase.

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