Aug 27, 2008 11:00 pm US/Eastern
3 On Your Side: Travel Clubs
PHILADELPHIA (CBS 3) ―
If sky high airfares are leaving you grounded this summer, you're not alone. Experts say that's why so many consumers are tempted by travel clubs. They promise huge savings on everything from flights to hotel stays. 3 On Your Side's Jim Donovan reports on whether they are a real deal or a trip trap.
Jerry McManamon loves to travel, so when a postcard arrived offering a free Caribbean cruise, he was thrilled.
The catch, in order to cash in, he had to attend a sales presentation for a travel club.
"A travel club is a club whereby a consumer can pay a fee to join and they are told that by joining they'll get to take advantage of special travel offers," said Alison Preszler with the Better Business Bureau.
Jerry says he was promised up to 60-percent off on airfare and hotel rates. So he signed up. The price to join was nearly $4,800 dollars.
"If we could get a room normally $120 dollars and we could get it for $60, that makes it a lot easier or more affordable for us to go," said McManamon.
But the Federal Trade Commission says buyer beware!
"The FTC has taken action against 17 different travel clubs over the past several years. Primarily, we've alleged that they have deceptively advertised what it is that they promise," said Lois Greisman with the Federal Trade Commission.
And the Better Business Bureau has logged more than 350 consumer complaints this year alone.
"We've heard from consumers who say that it was actually very difficult to book the travel that they wanted to through the company," said Preszler.
Tom Cross shelled out thousands to join a club. When he tried to book a condo, he found the travel club price was $500 dollars more than if he booked on his own.
"That upset us and that's when we really started to question the whole operation," said Cross.
And when Jerry tried to book a flight through his club, he says he only saved about $5.
"It definitely wasn't any big savings," said McManamon.
The BBB says it considers travel clubs to be "a suspect industry." However, they do acknowledge there are a number of reputable clubs.
Before joining any type of club like this, read the contract carefully and know the cancellation policy.
Also, be wary of high pressure sales tactics. Of course you can check with the BBB for prior complaints.
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