You Get What You Pay For

A South Carolina man got an unsolicited fax at his office offering a vacation deal he couldn't refuse. He quickly called to book the trip, looking forward to the comfortable resort accommodations, free breakfasts and special cruise outing promised in the fax. But when he arrived at the resort, he learned that the "free" cruise would cost him $200, and that to get his room upgraded to the level promised and receive his "complimentary" breakfasts, he'd have to attend a sales seminar on timeshares.

When a Florida woman got a call offering a vacation deal, she said she wasn't quite ready to commit. But the telemarketer convinced her to send a deposit for the trip, promising a full refund if she changed her mind. When she later tried to cancel the order and get back her deposit, she was told that it was non-refundable.

A Missouri couple who bought a trip to the Bahamas pitched on the phone expected to stay in a five-star resort as promised. But what they got was a dilapidated room with no air conditioning, carpeting, transportation or easy access to the beach. "This whole vacation experience was a nightmare, and absolutely nothing like what was represented by the company," the woman told the Federal Trade Commission.

Fraudulent companies promote their travel packages through the mail, by phone and by unsolicited emails, or "spam." Recently, the FTC has noted an increase in fraudulent travel promotions advertised through unsolicited faxes - sometimes disguised to look like they're from a travel company the consumer may recognize.

Here are a few tips to help you avoid being scammed:

Know who you're dealing with. If you're not familiar with a company, get its complete name, address and local telephone number. Be wary if the names of the seller and travel provider differ. You may be dealing with a telemarketer who has no further responsibility to you after the sale. As for a company that wants to send a courier for your payment or asks you to send your payment by overnight delivery, it may be trying to avoid detection and charges of mail or wire fraud. Whenever possible, you should restrict your purchases to those businesses that belong to professional associations such as the American Society of Travel Agents, the National Tour Association or the United States Tour Operators Association.

Check out the company's track record. Contact the Attorney General, consumer protection agency and Better Business Bureau where you live and where the company is based to see if there is a history of complaints on file. Keep in mind that while a complaint record may indicate questionable business practices, a lack of complaints doesn't necessarily mean the company is legitimate. Unscrupulous dealers often change names and locations to hide a history of complaints.

Be cautious if the names of the seller and travel provider differ. You may be dealing with a telemarketer who has no responsibility to you after the sale. And be wary of ads in the newspaper, on the Internet or that you receive by unsolicited fax that offer deeply discounted vacations. These "deals" often contain hidden costs or don't tell you that you may have to attend a sales presentation to qualify for the discount or the travel. Avoid buying from a firm that wants to send a courier for your payment or asks you to send your payment by overnight delivery. The business may be trying to avoid detection and charges of mail or wire fraud.

Investigate charter flights. If your trip involves a charter flight, get the charter operator's name and address and check the operator's registration by writing to: U.S. Department of Transportation, Office of Consumer Affairs, I-25, Washington, DC 20590. Also, call DOT's Public Charter Office at 202-366-2396 to see if the operator has filed to operate a charter flight from the planned departure city to the planned destination. Charter packages can't be sold until DOT approves the filing.

Verify arrangements with your travel agent before you pay. Get the details of your vacation in writing and a copy of the cancellation and refund policies. Ask if the business has insurance and whether you should buy cancellation insurance. Get the names, addresses and telephone numbers for the lodgings, airlines and cruise ships you'll be using. Don't accept vague terms such as "major hotels" or "luxury cruise ships." Call to verify specific reservations, too.

Use a credit card to make your purchase. If you don't get what you paid for, you may be able to dispute the charges with your credit card company. Some telemarketers may claim they need your account information for identification or verification. They don't. Your account number should be used only to bill you for goods and services.

Be wary of prepaying for long-term arrangements. Timeshares, campgrounds or travel clubs may offer to sell membership vacation accommodations for five years or more, or until you resell your interest. Unless you're certain you'll stay healthy, both physically and financially, and that the company selling the memberships will stay in business, prepaid vacations may not be right for you. In addition, annual membership and maintenance fees may rise. If the seller claims the fees will stay the same, beware. Beautiful properties today may be run-down in five or 10 years without sufficient maintenance. If you decide to buy a timeshare or membership in a vacation club, be aware that resales are difficult, if not impossible, because there's no secondary market. As for timeshares as investments: they rarely appreciate in value.

Learn the vocabulary. "You have been specially selected to receive our SPECTACULAR LUXURY DREAM VACATION offer" doesn't mean you'll get a free vacation. It means you'll be offered an opportunity to pay for a trip that may fit your idea of luxury - or not. "Subject to availability" means you may not get the accommodations you want when you want them. "Blackout periods" are blocks of dates, usually around holidays or peak season, when no discount travel is available.

Watch out for "instant travel agent" offers. Companies may offer to sell you identification that will "guarantee" you discounted rates. These companies have no control over discounts. Only suppliers of travel - cruise lines, hotel companies, car rental companies, or airlines - can decide to extend professional courtesies, and to whom.