Approach travel clubs with caution

W ith the cost of travel skyrocketing, consumers are increasingly susceptible to fraudulent offers for special deals on vacations.

Consumers should be wary of joining "travel clubs." Complaints to BBB show that many travel clubs promise huge discounts on hotels, airfare and cruises but fail to deliver for members despite the high cost of joining.

Unfortunately, many vacationers are being seduced by slick presentations and empty promises from high-pressure salesmen claiming that joining a travel club will let them in on great deals that ultimately don't materialize.

In the first quarter of 2008 alone, consumers filed nearly 350 complaints with BBB against travel clubs in the United States.

Thousands of complaints have been filed with BBB about travel clubs in the last three years and all tell a similar story of being lured - either in person, over the phone or through the mail - to a high-pressure sales presentation with the promise of receiving free airline tickets, gas cards or tickets to shows.

During the presentation, consumers are told they would be able to take advantage of remarkable deals on airfare and vacations if they joined the travel club for a membership fee of as much as $8,000.

Complaints to BBB reveal a pattern of problems with booking travel arrangements and evidence that the "deals" offered by travel clubs were no better - and often worse - than what customers found on their own. Complainants also state that sales presentations were extremely misleading and many felt they were "tricked" into giving up their right to cancel contracts.

Other organizations in addition to BBB have shown concern over the number of complaints for travel clubs. Nearly a dozen state's attorneys general, including Texas, have held investigations into travel clubs. 

Vacation clubs, special travel agent training and bargain-finder software, often aren't good deals because initial costs are rarely recouped by any future savings on travel costs since the bargains and special deals don't really exist as portrayed in the sales pitches.

Travel clubs are a "suspect industry" with BBB due to a high level of misrepresentation and dissatisfied customers, but there are a number of reputable travel clubs operating in the United States.

Before signing up with a travel club, vacationers should do their research and check the company's Reliability Report with BBB first to make sure that it is trustworthy.

Start with Trust. Contact the Better Business Bureau for a reliability report on any business or charity by calling 432-563-1880, toll-free 800-592-4433 or by visiting us at www.bbb.org.