Area travel club shut down

The Better Business Bureau is warning vacationers to be wary of a “travel club” operating in the Pensacola area. According to the Kansas Attorney General, Elite Escapes International, LLC, was served a temporary restraining order to stop them from conducting business in Kansas two weeks ago.

Furthermore, upon investigation and with coordination from the South Carolina Department of Consumer Affairs, the Attorneys’ General Offices in the states of Missouri, Colorado, Iowa, North Carolina, Nevada, Kentucky, New Mexico and the District Attorney for the Eighteenth Judicial District of Kansas, Nola Foulston, Kansas officials discovered a pattern and practice of deceptive and unconscionable practices.

South Carolina-based Elite Escapes has been offering vacation travel club services to Floridians through mail, telemarketing and presentations in local hotels. In a conversation with BBB serving northwest Florida, the telemarketing company hired by Elite Escapes reported that consumers must participate in a phone interview to pre-qualify to attend a presentation. Part of the qualification for the travel club service is that participants must be married or engaged and living together to claim the “gift.” Presentations have been reported in Pensacola, Fla.

With the cost of travel skyrocketing, consumers are increasingly susceptible to fraudulent offers for special deals on vacations. Complaints to BBB show that many travel clubs promise huge discounts on hotels, airfare and cruises but fail to deliver despite the high cost of joining.

Nearly a dozen state Attorneys General, including Florida’s, have held investigations into travel clubs and the Florida Consumer Services Division recently reported they received 298 complaints about travel clubs in 2007—almost triple the filings the previous year.

In the first quarter of 2008 alone, consumers filed nearly 350 complaints with BBB against travel clubs in the U.S. 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 $9,000.

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. Travel clubs have no control over discounts. Only suppliers of travel – cruise lines, hotels, car rental businesses or airlines – can decide to extend to professional courtesies, and to whom. You may get a better deal by simply contacting these businesses yourself, doing research online or contacting a local reputable travel agency.

Complainants also state that sales presentations were extremely misleading and many felt they were “tricked” into giving up their right to cancel contracts. It is important to note that Florida law provides that consumers may cancel a contract for a vacation certificate in writing within 30 days of purchase or receipt of the vacation certificate. The consumer may also cancel if the accommodations and facilities are not available as provided in the contract. If a travel package is not a vacation certificate, then Florida law requires that the consumer be informed that it is non-refundable before making any payment or signing a contract.

Be wary of vague statements such as “any major international airport,” “four-star accommodations” or “all major hotels.” Get specifics and check the details yourself. Call the hotel or airline and confirm reservations personally.

Complaints filed with BBB nationwide have shown that often, travel club memberships don’t pay. 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 U.S. Before signing up with a travel club, vacationers should do their research: check the business’ BBB Reliability Report™ first at bbb.org and check with the Florida Department of Agriculture and Consumer Services at www.800helpfla.com to determine if the business is registered in the state.