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Travel Deals in Your Mail:

How "Special" Are You?

 

It probably couldn’t come at a more welcome time: the cold of winter, middle of exams, assignments piling up - a notice that you have been specially chosen for an amazing deal on a luxury vacation. All you have to do is call to arrange your trip. How could you go wrong with a deal like that?

Deals like this are continually popping up with the promise of helping you get away from it all. But frequently the only departure that takes place is you…from your money! In fact vacation scams continually pop up as one of the most frequent swindles that people fall prey to. After all who wouldn’t at least be tempted by the lure of an escape to some warm tropical climate in the dead of winter?

How do they work?

A notice comes to you in the mail or by phone telling how you were specially selected to receive a luxury vacation package for a low sum of money - in some cases even free. If you respond within 48 hours, you will receive this great trip and perhaps with even some type of bonus. You just have to call a certain number to arrange payment and claim this “chance in a lifetime”. How can you loose? There’s plenty of ways:

Extras, Extras! First of all these racketeers are out to make money so regardless of how wonderful a person you are they’re not going to just give things away. Often what these packages include is limited. They may include a 3 night stay and but you have to pay for the flight, meals, ground transportation, etc. They often set it up so you may have to buy the flight through them at a set price (no seat sales here), or they may require you to pay for transportation from the airport to the resort (on a bus which they arrange and for which they set some exorbitant fare). Travel insiders are quick to point out that when you add all the cost up you are paying far more than if you had bought a package from a reputable company to start with.

Creative Writing 101: The hucksters that put these packages together may also promise “5 Star” accommodation, which in the galaxy of hotel ratings, looks more like it rates “3 Black Holes” or that “luxury boat cruise” could mean you’ll be leaning over the edge of some beat up fishing trawler. Remember that verbal or printed descriptions can be very subjective, if not downright lies. Also keep in mind that the equivalent of “5 Star” in North America could be the equivalent of “3 in some other parts of the world.

Waiting on the Tarmac: The package uses some no name charter for its packages. The rules that govern charter flights differ from those that govern regular scheduled flights. Thus delays are common and you could end up delayed for hours and even days or stranded in some remote place waiting to get back home - meaning extra cost in accommodation and meals. By delaying these flights the scamsters can then rent out your rooms at your destination while you are sitting waiting to get off the ground.

And Here’s the Pitch: Yes there’s often a catch once you’re there - like a sales pitch. Bad enough you are being gouged by some scam artist, what’s worse as part of the deal you may be required to sit through some sales pitch for time shares or some other so called “great deal”. Just what you want when the sun is shining and the beach beckons; to have to sit listening to some infomercial reject trying to convince you to fork over more of your cash.

Warning signs:

The time-limited offer: A common ploy is to get you to make a snap decision - before you have a chance to check this out thoroughly with better business bureaus travel authorities etc. Funny thing about these time-limited offers is that they are mailed bulk or 3rd class mail - the slowest postage route. If it’s so time limited why didn’t they try and get to you sooner? If there is a time limit make a b-line to the trash with this one!

On-line Scamsters: Many of these operators now use the internet to scam you. Emailed promotions are a common medium to scam people far more efficiently than by mail or phone. Pops up ads in your browser window are another method of choice.

They need your credit card to verify your identity. Never give a credit card over the phone to someone who has initiated the call. Often these hucksters will ask for the card number before they even quote you the price.

"We’ll send someone over." They may even be so “kind” as to offer to send someone to your door to pick up payment (in cash of course). Even if they offer to pick up a couple of pizzas on the way over, don’t do it. It’s definitely a scam.

Time to flee! Another sign is when you’re asked to pay for one of these “deals” which you won’t be receiving for sixty days or more. This gives them time to process your payment. The longer between the time you pay and the time you actually board the plane, the more time these shysters have to close up shop and get out of town.

To Protect Yourself:

First advice is to avoid any offer where they contact you. Following this simple rule will help you avoid the vast majority of these scams. Sure a few may be legit but chances are they’re not and the odds are stacked against you.

Check out the company that is marketing these to you and the actual tour operator with the Better Business Bureau and the Association of Canadian Travel Agents (ACTA ). In the U.S., see the Web site of the American Society of Travel Agents (ASTA). Also check with the airline that you are scheduled to be flying, the hotel you are staying at, or any boat that you will be travelling on. Some students have been promised a direct flight to their destination on a charter airline, only to find out that the airline doesn’t even fly directly to that location.

Find out what provisions there are if your flight is delayed or cancelled, or if you are bumped from your hotel. Some operators notoriously overbook their hotels, so you and your beach bound buddies show up to find your promised rooms are taken so you end up being shuttled off to some flea bag motel a couple of miles away that the operator’s brother happens to own.

Read all the provisions carefully. One place these operators often don’t cut corners is in protecting themselves. The fine print is important. What specifically is included and what is exempt? If it is all-inclusive what does the “all” include: Meals? Accommodation? Ground transportation? Gratuities? Alcohol? (Since some students have been known to have a drink or two on their vacations). If in doubt have a friend in the travel business take a look at the contract to see if you are on the hook for anything?

If you pay, use a credit card. While I don’t recommend taking out a credit card just for this option, you may be able to use yours if you have one or your parents’ if you don’t and pay them the cash. There’s still a risk but at least you’ll leave a paper trail and have some chance of recovering some of your loss if it turns out to be a scam. But as Karen MacKenzie, owner of Robert Q Travel (Strathroy) cautions, “with increased credit card fraud you take a chance giving your card to any tour operator that you’re not familiar with.”

Location! Location! Location! “Keep in mind”, suggests Mackenzie, “that where the company you are purchasing from is located, will likely affect whether you are protected at all if you are swindled”. For example if you are in Canada and purchase from a U.S. or international company, you may have little recourse if you are scammed, since different laws and regulations govern operators in each country.

Take action! If you do get taken in by one of these scams or if you take a trip and don’t get what you were promised, you can file complaints in Canada with your provincial Consumers Affairs Office. or in the U.S. with the Federal Communications Commission.

While most travel companies are legitimate, there are still plenty just out to make quick buck. Unfortunately many specifically target students who are on a limited budget and that many times don’t have a regular travel agent to deal with. Also the difficulty is that some of these shady characters set up shop, scam people, close up and then pop up somewhere else under a different name. Your best bet is to deal with a reputable travel agent particularly one that deals in budget travel with reputable tour operators.

Have a horrid travel experience? E-mail us, and we will post your experience (initialed only) so that others can avoid similar disasters.

Questions? Comments? Suggestions for The MoneyRunner? Write to us at Themoneyrunner@debtfreegrad.com

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