Money Management Newsletter

Vacations: "Free" Vacations May Not Be Free

Dr. Jo Turner

Professor, Family and Consumer Economics

More and more consumers are getting caught up in an expensive "free" vacation scheme.  Frequently these "free" trips are to popular resort areas such as Las Vegas.  Vacations are offered in various ways -- by telephone, through direct mail, or in retail store promotions.

In the in-store instance, the owner who purchased these vacation packages in good faith may become a victim, too.  What the retailer buys to create favorable customer relations sometimes generates nothing but ill will.  Even thought vacations and trips are often used as legitimate sales promotions, any offer far below its market value should be carefully examined before being accepted.  If you are considering accepting such an offer get full details about what is included.  What special conditions are in affect and what additional expenses are likely before you make any deposit or payment?

Some of these offers mention "service charges" or "handling fees."  And some promoters don't disclose any charges causing unpleasant surprises in the form of bills for people who gave the seller a credit card number thinking it was for verification purposes only.  A good practice is to NEVER EVER give your credit card number to someone who has contacted you for goods or services.

Some consumers have found, only after paying the service fee, that room reservations at the specified hotel were subject to availability and written confirmation prior to arrival.  Request for reservations have sometimes been met with letters of regret stating no rooms are available for the desired time.  The Better Business Bureau reports that rooms for "free" vacationers in places such as Las Vegas for example are often more expensive than rooms for regular customers.

You should also find out about any obligations on your time prior to accepting a "free" vacation offer.  Some land developers and real estate firms use resort trips as a sales technique, but you should beware in advance that your vacation would be interrupted by tours of property, and meetings with sales representatives.

Find out about the promoter before you agree to any vacation deal.  Are there unsatisfied complaints filed against him with the Better Business Bureau, Office of Consumer Protection or the U.S. Postal Service.  If after doing your research you decide to accept the free vacation personally call ahead and confirm all reservations.  If you find that you are a victim report your experience to the above agencies.