Posted on May - 11 - 2010

Better Business: Don’t let fraudulent travel agents take you for ride

Royal Palms Travel is headquartered in Dallas but sells travel clubs and packages nationwide. Its website has pictures of palm trees, a cruise ship and the Tower Bridge in London. It claims it can offer you great deals because of its “high purchasing power with luxury resort providers, hospitality companies and major cruise lines.”

The Texas Attorney General says the company “unlawfully misled potential customers and relied upon improper high-pressure sales tactics to sell worthless travel club memberships.” Customers found that “free” trips the company promised were subject to restrictions that rendered them effectively worthless. The attorney general has sued the company and its principals.

The BBB tracks inquiries and complaints on almost 4,000 types of businesses. In 2009, travel agencies ranked 30th in the number of complaints received nationwide, up from 35th the year before. Consumers lost billions of dollars in travel scams.

What are the most common fraudulent claims and tactics?

Unscrupulous marketers make their pitch via unsolicited e-mails, Internet pop-up boxes and even faxes to businesses.

Most employ bait-and-switch offers. They offer rock-bottom prices, but then add fees that the customer may not discover until the contract is signed.

Luxurious accommodations end up being anything but. I remember a complaint a few years ago from a woman who sat through a 90-minute presentation to get vouchers for a free cruise. She got her vouchers — for bunk beds on a ship leaving New Orleans during hurricane season. When she got to the dock, she learned that “free” didn’t cover hundreds of dollars in port and other charges.

Restrictions and black-out dates make the travel far less attractive.

You’re required to sit through a high-pressure sales seminar or take a tour of a timeshare at the destination. That’s a fair exchange if the travel deal is legitimate, but some people get caught up in the moment and sign up for thousands of dollars in travel benefits they may never use and that may not be any cheaper than what they could book directly.

There are many reputable travel agents and travel clubs to choose from. The BBB offers the following advice to make your trip an enjoyable one:

Don’t be fooled by professional-looking websites and promotional pieces offering free or wildly discounted travel.

Ask detailed questions and get everything in writing. Don’t sign contracts with blank spaces and don’t rely on oral promises. Consider contacting the airline, hotel and other travel providers directly to verify arrangements.

Pay with a credit card. If something goes wrong, you may have recourse that you won’t have if you pay by check or cash (or worse yet, you wire the money).

Check with the BBB. Royal Palms Travel, its affiliated companies and many others like it have an F rating with us.

If you remember nothing else, be mindful of the old saying that “if it sounds too good to be true, it probably is.” Ask yourself why a company you’ve never heard of is going to give you free travel perks. All too often the answer is — it isn’t.

Randy Hutchinson is the president and CEO of the Better Business Bureau of the Mid-South. Reach him at rhutchinson@bbbmidsouth.org.

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