Florida Consumer E-Newsletter
April 2008
Charles H. Bronson
Commissioner
A Message from the Commissioner
Dear Friends:
Most sellers of travel are legitimate, however as with any industry, there are some unscrupulous people trying to part you from your money. According to the Travel Industry Association, it’s projected that in 2008, over $679 billion will be spent by U.S. residents for travel expenditures. With such an astounding figure, it’s no wonder that scam artists want to tap into such a significant market.
Travel scams can take many forms and are often cleverly disguised to promote their “so-called” travel deals through mail, telephone, faxes, emails, and even the Internet. Scammers are finding increasingly devious ways to defraud unsuspecting consumers as thousands of people are still taken in by them every year. They capture your attention by offering trips at all-time low prices or making you a member of an exclusive club supposedly offering large vacation discounts.
Remember, we're here for you. Our consumer hotline can be reached by calling 1-800-HELP-FLA (435-7352) if calling from within the state, 850-488-2221 from outside of Florida, or 1-800-FL-AYUDA (352-9832) en Español. We will answer any consumer related questions you may have or direct you to the most appropriate resource for assistance.
Sincerely,
Travel clubs (also referred to as holiday clubs, vacation clubs, etc.) consists of a group of people who purchase a membership into “club” from a company that acts on behalf of the members. The overseeing company, often a travel agency, acquires favorably priced accommodations and passes the savings along to the members, generating a profit for the overseeing business in the process. If operated correctly, there is nothing wrong with this type of business as it provides benefits to members through volume discounts. However, some travel clubs do not operate with the traveler’s welfare in mind and simply use this as a tactic to scam consumers out of their hard earned dollars. Some travel clubs, for example, entice you to buy a lifetime membership that usually costs thousands of dollars. They promise steep discounts on airfare, cruises, hotels and other amenities—even though you're likely to find the same or better deals on your own.
If you do join a travel club, you may experience some of the following. Once you sign a contract and your membership is established, you will receive a password and access code to view the club website (this process normally this takes 10 – 15 days, even though the cancellation period is usually within 3 days). The website is how you will view the available deals and locations offered. You will also receive a travel packet describing your vacation and any discounts that you will receive, however there will be many restrictions on when you can take your trip. In many instances, the travel club representative will claim that the date you are requesting is unavailable. You may also be required to pay an additional handling fee of up to $100 to book your reservation. If you do actually participate in their vacation “specials,” you will most likely be booked into substandard accommodations. If you complain, the representative may offer you an upgraded plan or upgraded accommodations at an additional charge. This of course makes very little sense when the initial purpose of joining the travel club was so that you would receive greatly discounted travel packages.
In all reality, travel clubs have no control over discounts. Only suppliers of travel — cruise lines, hotel companies, car rental companies, or airlines — can decide to extend professional courtesies, and to whom. With unlimited access to free internet resources, you’ll probably get a better deal contacting the companies yourself or doing online research.
Here are a few tips to ensure your vacation is everything you expect it to be:
- Beware of high-pressure sales tactics, especially requests for an immediate decision or a statement that the offer is only good “if you act now.”
- Be cautious of offers that frequently use the words “free” or “complementary.” Often there is a string attached such as a time-share sales pitch, the obligation to buy something, or taxes and processing fees.
- Beware of notifications claiming that you’re a winner of a free trip/getaway. Most of the time, drawings are used just to obtain personal contact information. If it sounds too good to be true, it probably is.
- Make sure you understand the specifics. If a travel promotion refers to “major hotels,” “major airlines,” or other services, ask for the actual names of these service providers and contact them to verify the travel arrangements and any additional fees.
- Do your homework before investing in travel services. Make sure the person you’re dealing with is reputable and will provide you with the services you desire. Asking friends, co-workers, relatives and associates for references is a great start in selecting a travel provider.
- Use a credit card to make your purchase. If you don’t get what you paid for, you may be able to dispute the charges with your credit card company. However, do not give your account number to any business until you’ve verified that it is reputable.
- Before contracting with any travel business, call the Florida Department of Agriculture and Consumer Services at 1-800-HELP-FLA (435-7352), or 850-488-2221 to verify that the travel business is registered with the Department and if any complaints have been filed against them.
For more information on requirements of sellers of travel, please call our consumer hotline at 1-800-HELP-FLA (435-7352), and a consumer specialist will be happy to assist you.
Additional Resources
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The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Florida Department of Agriculture and Consumer Services
Travel, especially for people on vacation, should be fun. Unfortunately, there are some in the travel business who are more concerned with separating travelers from their money than in getting them to their destinations. You can reduce your chances of falling victim to unscrupulous sellers of travel by exercising discretion and common sense. Learn more...
