Just like any business, the travel industry has its share of scams, so know what to watch for and the best ways to react:
The scam: A deal costs just pennies on the dollar.
Travel discount sites can offer some pretty crazy deals.
“Buy this six-night all-inclusive stay for $399 for the next 12 hours,” they’ll say, tempting you into a quick decision. What they won’t tell you is all the hoops you need to jump through.
Your plan: Many travel deals are legitimate, if you can travel certain dates, fly out of specific airports or meet other requirements. Read all the fine print before you pull the trigger. Also, make sure the company advertising the deal is legitimate by checking with the Better Business Bureau and reading reviews.
The scam: You sit through a travel pitch.
All you have to do is attend a 90-minute presentation on cookware, for example, to earn two $300 vouchers for travel. What they don’t tell you is that a) the vouchers are only good for discounts off specific packages, and b) the packages are insanely overpriced.
Your plan: Ask a ton of questions to find out how the vouchers work.
The scam: You rent a condo from someone who doesn’t even own it.
While you can score an awesome deal on a rental condo by booking directly with the owner, many fraudsters set up fake profiles and offer condos they don’t own, then demand upfront payment before skipping out on you.
Your plan: Rent through a reputable real estate agency or a website like VRBO.com or Airbnb.com. Read through each condo’s reviews to make sure plenty of other renters had a good experience.
The scam: You “won” a free vacation.
You receive a mailer that states you won an amazing travel package. All you have to do is call a 1-800 number to redeem it. But when you call, the company demands you pay a fee to get your prize.
Your plan: If you find yourself in this situation, you are probably dealing with a scam. You shouldn’t have to fork over your hard-earned dollars to find out more about your prize, nor should you pay for anything over the phone.
The scam: Your car rental seems cheap, until you get to the rental counter.
Car rental agencies make money when you buy their pricey insurance, but you may not need it if your own insurance policy offers coverage on rental cars. Further, many credit cards offer coverage when you use your card to pay.
Car rental agencies will go to great lengths to persuade you to buy additional coverage. They’ve even been known to lie and say their coverage is mandatory.
Your plan: While Mexico requires renters to pay for government-mandated coverage, most additional coverage in the U.S. and abroad is voluntary. Make sure you know the requirements for any country you’re visiting.