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Travel Fraud * Recent crackdowns remind consumers to check companies' credentials |
The faux fax, offering a bargain trip and designed to look as if it
came from your company's travel office. The certificate for a
not-quite-free promotional vacation. The spring break package. The
special offer, available only if you act now.
These pitches, often by lesser-known companies in the travel industry,
don't just make a consumer wonder. Sometimes they intrigue state and
federal officials too. Last week, in a coordinated action (Operation Trip
Trap), the Federal Trade Commission and 21 state attorneys general filed
47 lawsuits aimed at unmasking a sort of travel industry rogues' gallery.
Twenty-five companies were named in the suits.
The lesson for consumers? Check a company's background before handing
over any money, industry veterans and law enforcement officials agree.
The less you're able to discover, the more you should worry.
But though many of the companies accused of wrongdoing in this
campaign were selling package tours, a package tour in itself is not
necessarily a product to be dismissed. A package tour typically combines
air fare, hotel accommodations and sometimes other features. Package
products make up a hefty portion of the overall travel industry, with
numbers growing inside and outside the U.S. Frequently these trips offer
savings unavailable to travelers trying to piece together separate
components.
Hundreds of tour operators hold membership in the American Society of
Travel Agents (ASTA), and 61 of the largest such companies have joined to
form the U.S. Tour Operators Assn. (USTOA), whose members each set aside
$1 million to cover possible passenger losses--perhaps the industry's
strongest self-policed consumer protection program. A quick way to gauge
a company's reliability is to check with ASTA in Alexandria, Va., (800)
275-2782, or USTOA in New York City, (212) 599-6599, to learn if it's a
member.
Checking professional affiliations, however, should only be the
beginning for a wary consumer. (Two of the five companies targeted in the
federal action are actually ASTA members in good standing. None are in
USTOA.)
For hints about what other questions to ask, one need only sort
through the allegations in this new crop of state and federal lawsuits.
Several elements recur: sales pitches that conceal important facts (like
restrictions on your dates of travel); pressure on consumers to decide
quickly; and vacation lodgings and amenities far less fetching than those
promised up front.
Authorities say consumers should be especially careful of vacation
certificates that arrive by mail, claiming special discounts or hinting
that you've won something. In most cases, not only are you not a winner,
you're going to find that the cost of the trip gets higher the more
closely you look.
California's part in the big travel scam crackdown includes a lawsuit
filed Aug. 2 by the state attorney general against Island Tours Inc. of
Fountain Valley and Surf & Sun Tours of Phoenix, Ariz. The suit charges
that spring break tours arranged by the companies were marred by tardy
departures and last-minute changes in hotels and airports. An Island
Tours spokesman said his company was an innocent intermediary; efforts to
reach Surf & Sun Tours officials were unsuccessful.
Among the companies facing government lawsuits: American International
Travel Services, Inc., a Deerfield, Fla., corporation accused of
misrepresenting its vacation packages and failing to disclose
restrictions, including mandatory attendance at time-share sales pitch
seminars. Efforts to reach American International were unsuccessful at
press time.
It's always wise, consumer advocates and travel industry veterans
agree, to look for companies with track records of at least several
years. Consumers should ask detailed questions about what is included in
the advertised price: Air fare? Some meals? All meals? Taxes? Day
excursions? Gratuities? Before you commit to buying anything, get
detailed information about the product in writing.
If you do feel comfortable with a company and decide to buy, use a
credit card. If something goes wrong (including financial failure on the
company's part), you can dispute the charges through the card-issuing
bank. Because there's less overhead involved, many tour operators offer
3% discounts to travelers who don't use credit cards. Most consumer
advocates agree that the expense is worth it for the protection it may
afford.
Pay attention to the company operating your flight too. Linda High,
ASTA's consumer affairs director, notes that on charter flights, commonly
used on budget package tours, delays are frequent but consumers are
generally not entitled to compensation. If the same delays happened on a
scheduled carrier (American, Delta or United, for instance), federal law
would require compensation.
If you use a travel agent, a good one will probably help you screen
out unfamiliar companies, but first you have to find a good agent. The
best way is through personal referrals, the same way you'd seek out a
mechanic or dentist.
Many of those who don't use travel agents have taken to
vacation-hunting by computer. But don't let down your guard. Paul Ruden,
ASTA's senior vice president for legal and industry affairs, noted that
the Internet "brings the cost of scamming down--that is, the cost to the
scammer . . . and somehow, people mystically believe that if something's
on the Internet, it has credibility."
Another question to ask is if a company has a California Seller of
Travel registration number, required for companies selling travel to
Californians. To qualify, the company must supply information suggesting
stability and sound financial practices. Many fly-by-night companies
don't bother.
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