Vacation Certificates
How Do
Vacation Certificates Work?
Timeshare resorts, travel clubs, automobile dealers and many other types of
businesses may notify you by mail or telephone that "You have been
selected for an island vacation that includes free airfare and
accommodations" or that you can "Join our travel club and get a
'free' vacation." Maybe you filled out an entry form for a vacation
sweepstakes or other prize giveaway at a store, fair, trade show or other local
event. Some companies may advertise "free" vacations as a bonus for
buying products or services.
To receive the vacation certificate, you may be required to make a purchase or
attend a sales presentation, often at a timeshare resort, membership campground
or other land sales promotion. In addition, there may be other conditions for
acceptance, such as age or income requirements, or attendance with your spouse.
You might also have to bring the notice you received from the company, and
proof of your identity.
Vacation certificate offers vary. Some certificates include lodging in a hotel
or timeshare resort for a certain number of days and nights in the
You are usually required to fill out the vacation certificate with information
such as your three choices of when you wish to take the vacation. You return it
to the company 30 to 60 days before you wish to use the vacation offer.
Companies may require a non-refundable processing and handling fee, or a
refundable deposit from $50 to $100 to reserve the vacation time request.
Vacation certificates requiring a refundable deposit usually state that the
deposit will be returned upon your arrival at the place of lodging or after you
have used the vacation. Companies usually advice that written
confirmation will be sent when the deposit is received.
CHECK FOR HIDDEN COSTS.
ARE THERE
DEPOSITS REQUIRED? WHO PAYS FOR MEALS AND TRANSPORTATION?
Why
Are Vacation Certificates Offered?
Businesses often provide vacation certificates in large quantities believing
that the attraction of a "free" vacation will draw customers to their
sales sites. The goal of the business is to sell a specific product or
service. Although many people receive these offers, one promoter stated that
very few will actually use the vacation certificate. For this reason, they can
afford to promote the vacation certificate to many
people.
According to one timeshare resort operator, the offer of "free"
lodging is used to introduce a new timeshare resort to potential buyers.
Another company stated that in offering the "free" vacation to its
customers, it sold products and created goodwill.
Why
Does the Airfare or Other Costs Seem So Low?
In many cases, if a low fare for transportation or low hotel rates are offered,
the company makes up its loss in another area. In other words, you don't get
something for nothing. For example, one marketing company offered low airfare
to a resort island with hotel bookings made through the company. However, the
marketing company did not state that is was on a space-available basis or that
hotel rates were $40 a day higher than the average hotel, and you had to stay
at least seven nights.
BBB
Customer Experience
A survey of local Better Business Bureaus across the
country showed that there have been consumer complaints about vacation
certificate offers. Some consumers complained they did not receive the offered
vacation certificate. Others complained the offer was misrepresented. For
example, some participants stated that they received incomplete information
regarding airfare costs and couldn't get airfare reservations or requested vacation
times. One consumer claimed that the offer described over the phone was
different from written information given after the sales presentation. Some
consumers stated that other eligibility requirements were added to those
conditions listed in promotional literature.
State
Regulations
Many states have actively sought to protect consumers against
misrepresentations made by some vacation certificate promoters. For example,
the Arizona Attorney General took legal action against one vacation certificate
promoter who did not disclose all the limitations of the vacation offer.
Although buyers had been told that extra fees would be charged for the peak
season, they weren't told that 80% of the year was considered the peak season.
The California Attorney General filed a complaint against a travel club company
that called consumers and asked them for a major credit card number to validate
a complimentary vacation. However, the company charged fees on the consumers'
credit card accounts without their permission.
Consumers should contact their state's attorney general and find out if
companies offering vacation certificates are required to register their offers
with the state.
1) Contact your local
Better Business Bureau for a reliability report on both the vacation
certificate company and any other company involved in an offer that requires
you to listen to a sales presentation or purchase a product. Until you are
certain you wish to use the offer, do not give any company cash, check or credit
card number.
2)
Read the rules carefully. Do you meet the required conditions, such as age and
marital status?
3) Determine
if all costs involved in using a vacation certificate. It will be your
responsibility to pay for anything not specifically mentioned. Do you pay for:
--Hotel,
timeshare or resort or other lodging?
--Meals?
--Transportation from your home to the resort? Or, do you first have to travel
to a distant location where the company then pays for "free" travel?
--Transportation from the airport to the lodging accommodation?
--Additional fees for the peak tourist season? When is the peak season?
--Port taxes when visiting a foreign country?
4) Before
traveling, confirm all arrangements directly with the:
--Airlines, cruise lines, etc.
--Hotel, timeshare resort, etc. (Requesting descriptive brochures directly from
the lodging may help to avoid unpleasant surprises once you arrive.)
--Business sponsors such as restaurants or resort attractions offering discount
or other coupons. Determine any restrictions on coupon use.
5) Ask
the vacation certificate promoter what happens if the hotel or other
accommodations are completely booked.
6)
If a refundable deposit is required, when and how do you get it back? Find out
what the company will do if it can't match your requests with a specific
vacation time. Can you get your money back?
7)
If "free" travel is offered, can you make your own travel
arrangements or do you have to use a specific travel agent? If you use the
company's travel agent and you must pay for a second ticket, determine if the
cost of the second purchased ticket is more than if you made your own travel
plans for two through another source. Is the rate competitive with rates
available through other travel agents, airlines, etc.?
8) In
general, the BBB advises that you consider attending a sales presentation only
if you are interested in what's for sale, not for the prize alone.
9)
If you attend a land sales presentation, obtain a copy of the Property Report
often required by federal law, and read it before signing any contract or
written agreement.
Warning Signs
to Watch For:
Be alert to the following "red flags" that may signal fraudulent
travel promotions:
--Salespersons
who use high-pressure tactics such as:
-Demanding your credit card number before explaining all the conditions of the
offer
-Requesting that you identify yourself by your credit card number(a sign of
possible misuse of your card)
-Refusing to provide all the information about the total cost of the travel
offer
--Post card promotional mailings that say you have won a weekend trip to a
resort, but require you to pay a fee in order to claim the prize
--Low rates on air travel that require you to purchase an additional ticket for
a companion
--Offers by companies attempting to subvert U.S. postal authorities by
requiring a messenger, to courier, to deliver the travel package to you in
exchange for your payment
This report is
general in nature and not intended as a reliability report on any company,
service or product.