The excitement has been building for months and the time has finally arrived: Vacation! In minutes you’ll land in tropical paradise. You can’t believe you got airfare, accommodations at a lavish hotel and a week full of spectacular activities for such a low price! Yes, you were skeptical at first, but the phone operator ensured you this was a special, one-time-only deal of a lifetime, so you couldn’t possibly pass it up! When the cab driver picks you up from the airport to take you to your “five-star” hotel, it looks nothing like you expected. It must be some mistake…

If It Looks Too Good to be True…It Probably Is

Each year, hundreds of Americans are victims of vacation fraud. According to the Federal Trade Commission (FTC), travel scams consistently rank near the top of the list of complaints received. During the past few years, an increasing number of fraudulent companies have been promoting travel packages as one-time-only deals through the mail, e-mails, phone and even more recently, faxes. More often than not, these specials come packaged to look like they’re from a legitimate travel company – making it very hard for the consumer to distinguish between real and fraudulent.

The truth? Many of these companies advertise these specials but forget to mention all of the hidden costs associated with the trip (which sometimes end up costing travelers even more than it would have been to plan the trip themselves). Other times, companies advertise low prices for luxury accommodations, but when the traveler arrives, they find it to be much less luxurious than promised.

According to the Minnesota Attorney General’s Office, more often than not these companies require consumers to attend a sales presentation about purchasing a timeshare at the destination; however don’t communicate this obligation to the traveler until they arrive at the destination.

One of the worst tactics these companies often get away with is requiring a one-time deposit in order to secure a spot. In extreme cases, some of these fraudulent companies end up taking this money and don’t even provide the consumer with a trip! Other times, companies will tell consumers they will guarantee a full refund if they choose to cancel their trip – yet when travelers do decide to cancel; they find the company won’t issue them a refund.

What You Can Do to Keep From Getting Scammed

FTC attorney Cindy Liebes says there are a few sure signs you should look for when planning vacation. Liebes says to avoid doing business with companies that:

• Use high-pressure sales techniques: You tell them no a thousand times, but they keep trying to convince you and keep offering to throw in more “deals”.
• Promote luxurious trips at prices you know are truly too good to be true: This involves using common sense. If a company says they will give you a European vacation free of charge – it should be obvious that there is some type of catch.
• Require you to mail your payment through overnight mail: Legitimate companies work out some type of payment plan with you. Companies that ask for courier or overnight delivery may just be trying to avoid early detection and charges for mail fraud.
• Require your credit card number for identification or verification purposes: No legitimate company will ever need your card number for verification – only when it comes time to bill.

The FTC and the Minnesota Attorney General’s Office offer a few more suggestions of things you can do when you are looking to purchase a vacation package:

• Know the company you are dealing with: Confirm the company’s contact information and ask if it belongs to any professional associations (such as the American Society of Travel Agents). If you talk to someone that has a different name than the travel provider you may be speaking to a telemarketer, who once he or she has made the sale, has no further responsibility to you.
  
  
• Check out the company’s track record: You can obtain this information from your state’s Attorney General’s Office, consumer protection agency, and Better Business Bureau. This record will show all past complaints, but one note of caution: Just because a company does not have any complaints filed against it, it doesn’t mean it’s a “good” company. Many fraudulent companies change names on a regular basis.
  
  
• Verify arrangements before you pay: You have all the right to get every agreement and all details of your trip in writing. You should also obtain a copy of the cancellation and refund policies the company tells you about. If the company uses words such as luxury hotel or five-star accommodations, be sure to get the names and contact information for all hotels so you can check them out and verify your reservations before you buy the package.
  
  
• Use a credit card to make your purchase: If you end up getting less than what you paid for on your trip, it may be possible to dispute charges with your credit card company. Another word of caution: Don’t give the company your credit card number until you know it is legit. They do not need it for verification – that is a good sign you are being scammed.
• Investigate charter flights: When companies offer charter flights as means of transportation, check it out. Get the charter operator’s name and contact information and check its registration through the U.S Department of Transportation, Office of Consumer Affairs. You can also contact the DOT’s Public Charter Office to make sure the operator has filed to operate a charter fight from your quoted departure and arrival cities. Charter flights can’t be sold until DOT approves it.
  
  
• Learn the vocabulary: Just because the package says, “You have just been selected to win a fabulous, all-expense paid luxury vacation,” it does mean you’ll be getting a free trip. Moreover, the company’s idea of luxurious may be far from your expectations. Many times, companies will use the terms subject to availability or black out periods. These terms mean that you may not be able to get these specific deals when you want. The special discounts often don’t apply during holidays or peak seasons.
  
  
• Watch out for “instant travel agent” offers: Some companies will tell you they will give you a special code that will guarantee you the rates that travel agents pay for accommodations. But in reality, the companies are just out to sell you the code. They have no control over the discounts – only the specific hotel or airline can offer the deals.

The bottom line is that you should be sure to remember to read all of the fine print and research a travel company before you book your trip. Otherwise, your dream vacation may very well turn out to be a nightmare.

Sources: Minnesota Attorney General’s Office; Federal Trade Commission.