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Travel Scam Hits Southern Arizona

Scammers sell card that supposedly reaps big travel benefits

October 22, 2007

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A company called Show Me Destinations is offering “Two Roundtrip Airfares to Anywhere in the U.S.!” via a recent post card mailing to southern Arizona residents.

Over the past two weeks BBB of Southern Arizona has taken several calls from area consumers inquiring about the legitimacy of the Surprise, Ariz., company, which appears to be a travel card mill scam.

“Considering the number of calls BBB is getting about this post card, just about everybody in southern Arizona has won,” says Tom Collier, CEO. “That’s the first indication that this is likely a scam.”

The card boasts a Southwest Airlines logo, but according to consumers who are calling, when they inquire with Southwest the airline has no knowledge of the promotion. This is the second indicator of a scam, Collier says.

Organizations making these types of offers are known throughout the travel industry as “card mills” because they routinely offer credentials by the thousands in the form of an identification card that is sold for a significant fee.

According to the American Society of Travel Agents (ASTA), consumers are told these cards are accepted by every segment of the travel industry and will give the purchaser access to travel agent freebies and discounts and commissions on selling travel.

In fact, all these businesses sell consumers is a piece of plastic. Any tangible benefit would come only if the consumer deceived a third-party vendor about his or her true status.

Additionally, some mills emphasize the purchaser’s opportunity to recruit other “agents’ and earn fees not only for each recruit but each time the recruit travels – reminiscent of the classic pyramid marketing schemes.

“The reality is that hardly any travel suppliers accept these cards,” says Collier. “In order to sell travel and be recognized by a supplier, you need to be affiliated with either a travel agency or be registered as an independent seller of travel with either the Cruise Lines International Association or the Airlines Reporting Corporation.”

Travel agents promote and sell travel to the general public as part of a business relationship with travel suppliers. If they receive travel privileges, which are not all that common these days, it’s based upon their demonstrated commitment to that endeavor, according to ASTA. Most importantly travel agents do not have to pay to enter the business, nor do they need an identification card to practice it.

“Bottom line is that card mills sell a product whose only function is to defraud travel suppliers, and often, the purchaser,” Collier says.

Collier says consumers who are simply interested in obtaining the best travel bargain should be highly skeptical of offers that require them to purchase an identification card or that suggest that they are being taken in to the business. BBB and ASTA offer the following consumer tips:

• Consumers should ask themselves whether they are buying the card merely for the purpose of receiving deals on their own travel.

• Before buying a card, consumers seeking travel bargains should comparison shop for several trips they might like to take, inquiring from several sources including traditional travel agencies and on-line travel agents.

• Ask whether the additional cost of the card will be offset by any savings on travel services of comparable value.

• Always obtain brochures and other written documentation specifically describing what they are being promised.

• Check with the supplier whose services they are interested in, in advance, as to whether it will recognize the card or other claimed affiliation as a basis for providing them with discounts or upgrades.

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