Travel fraud is nothing new, and with increasing numbers of clients surfing the Web for travel information, the internet can be the new frontier for travel misrepresentation and fraud, reports USTOA.
While telemarketing and fax schemes are still major vehicles for travel fraud, the internet is an excellent breeding ground for tour operators and travel companies that misrepresent themselves and provide unsubstantiated claims, says Bob Whitley, USTOA President. "Although the vast majority of travel web sites are legitimate, the internet does make it easy for some companies to fool unsuspecting consumers, notes Whitley.
"Over the past year we have seen a rise in complaints about companies that misrepresent themselves over the internet as members of USTOA and other travel industry organizations. In the case of USTOA, this can be very serious, as all USTOA Active Member companies must participate in our $1 Million Consumer Protection Plan. The plan requires each USTOA company to set aside a fully secured $1 Million bond or Letter of Credit to reimburse consumers' payments and deposits in case the company goes out of business," he says.
By citing USTOA membership, a company is actually promising consumers they will be protected by this $1 Million coverage, cautions Whitley. "If the company falsely claims to be a USTOA member and goes out of business after your client has paid for their vacation, the client is not protected by our $1 Million Plan," adds Whitley.
Any company can set up a web site and claim they are USTOA members. "We have had several complaints this year from consumers and travel agents. When they bring a company to our attention, we investigate the web site and the claims. If the company in question is 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.
Among complaints USTOA has received over the past year are a company based in Washington State, selling vacation packages; an airline consolidator selling to travel agents; and a company out of Virginia selling vacations to the Bahamas. A recent search of the internet also revealed a company specializing in African safaris, as well as one selling travel to the Middle East, both claiming to be USTOA members.
WHAT CAN YOU DO?
Whitley suggests that travel agents check directly with NTA, USTOA, or with ASTA's TOP (Tour Operator Protection Plan) to determine whether the tour operator in question is a member. Travel agents and the public can search the USTOA web site (www.ustoa.com) for a full listing of Active Tour Operator Members.
WARNING SIGNS
USTOA has produced radio public service announcements to educate consumers about vacation fraud. The announcements advise the public to look for these warning signs:
- Prices that seem too good to be true
- Companies requiring travelers to buy or sell vacation certificates
- Companies that claim to make you an instant travel agent
- Pressure tactics to put down a deposit on a vacation
USTOA currently numbers more than 60 Corporate Member companies, representing over 162 brands. The association's members move more than 10 million travelers yearly, and have met the travel industry's strictest standards for membership.
A listing of current Active Member companies is available on the USTOA web site,www.ustoa.com. You can also contact USTOA via e-mail at information@ustoa.com, or phone 1-800-GO-USTOA (468-7862) for a copy of USTOA's "The Travel Agent's Planning Kit," which contains a listing of the association's Active Member companies.
Public Relations Contact:
Linda Kundell Communications
(212) 877-2798, (212) 877-3387 fax
(For all other inquiries about USTOA, please contact USTOA.)
