Free Airline Ticket, Free Vacations, Scams?

Americans lose more than $12 billion annually to scams such as free vacations and free airline ticket offers. Here are common scams to watch out for.

Just Make a Deposit to hold the offer.

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.

Free vacations.

Here you usually must purchase the second vacation at the "regular price," which is usually two to three times more than it would cost to purchase the ticket through a travel agent. Or this "free" stay probably comes with a long list of limitations and exclusions or may require attendance at timeshare presentations.

Free Airline Tickets.

So called "free" airline certificates are often not really free. They require you to purchase hotel accommodations at inflated prices. Be sure to read the fine print for limitations, exclusions and refund restrictions.

Wolf in Sheep Clothing.

A Tennessee woman received an unsolicited fax at her office advertising a vacation trip to Orlando, Cocoa Beach and the Bahamas. The letterhead on the fax looked exactly like the one used by her employer's travel group, and she thought the unbelievably low price was a special employee benefit. Anxious to take advantage of the offer, she quickly booked her trip. As it turned out, the company had no affiliation with the woman's employer, and she never received the tickets she paid for.

Instant Travel Agent.

Some companies may offer to sell you a travel agent identification that will "guarantee" you discounted rates from cruise lines, hotel companies, used car companies or airlines. In reality, the companies that sell this identification have no control over discounts. Only the actual supplier of the services can extend professional courtesies.

Spring Break Scams.

Some Spring Break companies don't use a formal contract, which further complicates matters. Tour company brochures often double as contracts and as a result, when students sign up for more information, they might be unwittingly signing a contract. According to a recent Switchboard survey, 28 percent of students responded that they didn't realize a hotel room wasn't included in their package.

Prepaid Telemarketing.

Here’s one. 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.

Travel scams consistently rank near the top of the list of complaints received by the Federal Trade Commission (FTC). Fraudulent travel offers can be hard to distinguish from legitimate ones. But according to FTC attorney Cindy Liebes, there are some tips to keep your trip from unraveling. She recommends that consumers avoid doing business with companies that use high-pressure sales techniques, promote elaborate trips at below-market prices, urge you to use a courier service or overnight mail to send your payment, or tell you they need your credit card number for identification or verification.

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

Learn the vocabulary. "You've 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 - or may not - fit your idea of luxury. "Subject to availability" means you may not be able to get the accommodations you want when you want them. "Blackout periods" are blocks of dates, usually around holidays or peak seasons, when no discount travel is available.

Avoid telemarketers. They have no further responsibility to consumers after the sale has been finalized. Also, be wary of firms asking consumers to send payment by overnight delivery. It's more difficult to detect fraud through mail correspondence.

Where to Complain. Several organizations can provide additional information and help you with complaints. Your state Attorney General or the Attorney General in the state where the company is located probably has a division that deals with consumer protection issues. The American Society of Travel Agents, Consumer Affairs, at 1101 King Street, Alexandria, VA 22314, may be able to mediate your dispute with an ASTA member.