Issue Date:  -  Thursday, 20 September 2001

Consumers Warned About Discount Travel

Consumers are advised not to rush into a contract with travel discounters Cedar Club, who offer discount accommodation schemes at luxury resorts and hotels.

Department of Consumer and Employment Protection Commissioner Patrick Walker issued the warning about Cedar Club, and its promotions company Club Global, after complaints were received from consumers in the South West.

Mr Walker said Consumer and Business Affairs Victoria had also received complaints against Cedar Club International and had laid charges against the company under the Victorian Fair Trading legislation for alleged false testimonials.

In Western Australia, consumers from Esperance, Albany and Bunbury alleged they were contacted by a Club Global telemarketer inviting them to participate in a holiday and travel survey.

A few days later they received a second call informing them they had won a prize of either seven nights accommodation in Thailand, Bali, Fiji, India or the Gold Coast.

This call was followed by a faxed invitation to a free Club Global "Holiday and Travel Show", which they were required to attend to collect their prize.

Mr Walker said the prize did not include travel and was only used to lure people to a seminar where Club Global promoted and sold memberships of Cedar Club International for between $2500 and $2850.

"Club Global claimed the Cedar Club International memberships were heavily discounted for that night only and would entitled the bearer to large discounts of up to 70 per cent at luxury resorts and hotels," Mr Walker said.

"However, when Consumer Protection contacted some of the hotels mentioned they had either not heard of Cedar Club International or claimed the normal prices of their hotel's accommodation had been misrepresented to inflate the supposed discount."

Mr Walker said itinerant travel companies often did not provide the same level of after sales service as a local travel agent, who is licensed and covered by the travel compensation fund.

"Travellers are wise to compare it to the kind of discounts offered by a licensed travel agent."

Mr Walker advised consumers to determine for themselves that the specified discounts were actually available before making a decision or purchasing this kind of travel membership.

"It is sensible to sleep on these kinds of matters before making a decision or contact Consumer Protection's Call Centre on 1300 30 40 54 for further advice."