UNITED STATES TOUR OPERATORS ASSOCIATION CITES NEW FRONTIER OF WEB FRAUD
Check Out Your Travel Company Before Paying Your Money

Why USTOA Membership Matters

With more and more people using the Internet to research and book travel arrangements, the Internet can be the new frontier for travel misrepresentation and fraud, cautions the nonprofit United States Tour Operators Association.

According to Consumer Sentinel, the national complaint database maintained by the Federal Trade Commission, consumers filed 6,664 travel-related complaints in 2005. "Although the percentage of complaints about travel scams has remained steady in recent years, as Internet use has increased, so has the overall number of complaints we receive from consumers. This is most likely due to the ease of sending bogus offers online and via email," says Lesley Fair, Senior Attorney with the FTC. She cites typical consumer complaints to the FTC as offers for "free" or low-cost vacations; misleading student travel packages; and deceptive resort timeshare offers.

PhoCusWright's Online Travel Overview (Fifth Edition) confirms that, through 2007, online travel bookings will increase at nearly four times the rate of the total travel market. The company further states that, by 2007 online leisure/unmanaged business travel is expected to represent nearly 40% of the total travel market, surpassing $93.6 billion.

“Although telemarketing and fax schemes still exist as vehicles for travel fraud, the Internet makes it particularly easy for unscrupulous tour operators and travel companies to misrepresent themselves and provide unsubstantiated claims,” says Bob Whitley, USTOA President. Whitley points out that the vast majority of travel web sites are legitimate, but unsuspecting consumers can still be fooled.

In addition to unrealistic offers, consumers should be aware that a company can misrepresent themselves as a USTOA member. Any company can set up a web site and claim they are USTOA members, notes Whitley. “This can be very serious, as all USTOA Active Member companies must participate in our Travelers Assistance Program, which among other requirements, stipulates that each USTOA member company post a $1 million bond to help protect consumers in case of bankruptcy or closure,” he says. By citing USTOA membership, a company is actually promising consumers they will be protected by up to $1 Million coverage, cautions Whitley.

“USTOA is the only industry organization that requires its members to set aside $1 Million for consumer protection. If the company falsely claims to be a USTOA member and goes out of business after you have paid for your vacation, you as a consumer are not protected by our Travelers Assistance Program,” adds Whitley.

“When consumers and travel agents bring a company to our attention, we investigate the web site and the claims. If they are falsely claiming to be USTOA members, we have our lawyers contact them and request them to cease and desist or face legal action. This is usually sufficient to deter them from further exploiting our name,” he reports.

What Can You Do?
Before you put down a deposit on your next vacation, confirm that a company belongs to USTOA or another reputable travel industry organization like the National Tour Association. And, don’t necessarily take the company’s word for it. Whitley advises consumers to consult the USTOA web site (www.ustoa.com) for a list of the association’s members.

Warning Signs
Whitley also suggests travelers look for these warning signs:

Consumers who feel they are victims of fraudulent advertising or solicitations can file a complaint with the Federal Trade Commission on the FTC web site: www.FTC.gov; or phone the FTC’s Consumer Response Center: 1-877-382-4357.

About USTOA
USTOA members move more than 10.5 million travelers yearly, and have met the travel industry’s strictest standards for membership.

USTOA maintains a listing of its current Active Member companies on its web site, www.ustoa.com. Consumers can also contact the organization via e-mail at information@ustoa.com, or phone 1-800-GO-USTOA (468-7862) for a copy of USTOA’s “Smart Traveler’s Planning Kit,” which contains a listing of the association’s member companies.

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