The FTC is making a stand against the travel scam. Although unlikely to flush out every crook, the agency launched Operation Travel Unravel a few years ago. It sued three companies accused of fraudulent business practices. The settlement brought more than $300,000 in redress and a requirement that bonds be posted before the companies could attempt future transactions.
That's just scratching the surface in the world of travel scams. Other criminals prove more difficult to prosecute.
For example, some scam artists employ a technique called "split pricing." They'll offer airfare and accommodations at prices well below market levels. But there will be fees in the fine print that more than offset the savings. Others will mention a luxury hotel, but hide the fact that an expensive "add on" fee is required prior to check-in.
Despite the efforts of government agencies like the FTC, the travel industry is very poorly regulated. Anyone can hang a sign in front of their door and sell travel products. If you have access to a fax machine, telephone or email account, you can send out solicitations.
The FTC does offer an online complaint form. But bear in mind that no one can offer guarantees of recovery after you've been bilked.
So before you buy, consider the following checklist, compiled from the FTC, the Department of Transportation, and the Bureau of Consumer Protection.
Always use a Credit Card This gives you the option of disputing fraudulent charges through your credit card company. By the way, never give your card number to someone asking for verification of your identity. Only give the number for actual orders.
Learn the Vocabulary How many times have you received the following email? "You have been specially selected to receive our SPECTACULAR LUXURY DREAM VACATION offer." Read it several times. You have NOT been awarded a free vacation. Why are you special? How is the trip spectacular? What elements make it a luxury trip? These are words designed to get your attention, not necessarily to accurately describe the services.
Verify the Details of Your Trip When they say the hotel is five-star quality, ask for the name and address. With the Internet at your disposal, it is easy enough to check on any hotel. End the deal if it isn't supplied. The same is true for airlines, tours, cruise ships, and any other products. Reputable companies do not hesitate to provide this information. Check the company's track record, too. Your local authorities should have lists of firms that attract multiple complaints.
Run from "Instant Travel Agent" offers A common scam is to sell "certification" as a travel agent. This, you'll be told, allows you to take advantage of professional discounts. The problem with this one is that professional discounts are not obligatory. Suppliers decide when and to whom they extend price breaks.
Watch Out for the Word "Complimentary" Why is something being offered to you free of charge? Many times, the idea is to provide a captive audience for hours of sales presentations. Do you want to spend your precious vacation time listening to these pitches? Be warned: many are structured to make you feel obligated, and most are very high-pressure presentations.
With little regulation and electronic frontiers to exploit, travel scams are here to stay.
The annual take on these rip-offs runs well into the billions of U.S. dollars, and travel complaints routinely top the list of most common consumer problems.
Travel is one of the few products that is paid for prior to delivery. But travel scams usually don't ensnare skeptical, well-educated budget travelers.
They want your trust and your money. Leave them empty-handed.
