Issue Date:  -  Tuesday, 18 September 2001

'Discount' Travel Schemes May Provide Poor Value for Money

The Northern Regional Office for Consumer Protection (formerly Ministry of Fair Trading) in Karratha is warning regional consumers to be wary of discount travel schemes which may provide poor value for money.

The Northern Regional office has recently been alerted that these schemes are specifically targeting regional businesses.

Complaints have been received from consumers in Albany and Bunbury and the Midwest Regional Office in Geraldton has advised that individuals have recently been promoting this scheme there and may soon be targeting consumers in the Pilbara and Kimberleys.

Investigations by Consumer Protection have determined that regional consumers are initially contacted by a telemarketer allegedly undertaking a travel survey. A few days later those who complete the survey receive a fax notifying them that they have won a prize, a choice of 7 nights accommodation in Thailand, Bali, Fiji, India, or on the Gold Coast.

To receive the prize (which is only for accommodation, not travel), the winner and partner are required to attend a 'Holiday and Travel Show' seminar at a local hotel. At this seminar travel club memberships are marketed for $2500-$2850.

It is claimed that membership prices are heavily discounted only for those who sign up at the seminar and loans are offered on the spot. It is further claimed that these memberships provide members with a 'corporate' discount of 50% to 70% off advertised room rates, including peak times.

However, some of the hotels named in the presentation or on the website have confirmed that they have not heard of these memberships. As a result of initial investigations it appears that the discount rates quoted are often the same rates that can generally be obtained from locally licensed travel agents.

Consumer Protection reminds consumers not to be rushed into contracts with travel discount clubs without seeking independent advice. In particular, consumers should confirm for themselves that discounts are available at the specified locations and/or hotels.

Consumers who have been contacted by one of these schemes should contact Consumer Protection's Northern Regional Office in Karratha. The Northern Regional Office in Karratha can be contacted on (08) 9144 1478 or for the cost of a local call on 1 300 30 40 54.