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Consumer Protection Reports
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Executive Summary
Spring Break has become an annual ritual for more than a million
college students each year. It is a time for students to take a break
from the rigorous demands of their academic programs in order to relax
before tackling the flurry of exams that awaits them at the end of the
semester.
Many students choose to travel to a tropical
destination such as Cancun or Acapulco to enjoy the sunshine and
celebrate with friends. They often leave with expectations for a
relaxing week; unfortunately, many end up coming home with horror
stories about paying hidden fees or suffering through itinerary changes
that turn a trip to paradise into a spring break nightmare.
Thousands
of students choose to buy travel packages, in which students pay one
price for their entire vacation and all arrangements are made on their
behalf. These packages can be a tempting option for students – they
often appear to offer competitive prices on airfare and accommodations
while removing the burden of organizing the trip from the student.
We
surveyed spring break travel ads found at colleges in a dozen
communities around the country. Our survey found that travel agencies
offering spring break packages often engage in deceptive advertising.
Our findings: • Every single advertisement we examined contained hidden, confusing, and misleading fees.
• Hidden fees for each trip, usually mentioned only in very fine print, totaled an average of up to $367.
• The resulting price for a spring break trip was on average up to 62 percent higher than the prices advertised.
•
The largest percentage difference between an advertised price and an
actual price was for Paradise Parties, whose actual price of $1016 was
more than double the advertised price of $499.
• In addition to
deceptive pricing, companies also require travelers to give up many of
their rights. Travel companies reserve the right to change travel and
accommodation plans at their discretion. In addition, companies require
travelers to sign contracts in which they must waive or limit their
legal rights to file disputes with the travel company.
When
shopping for a spring break travel package, students should be aware
that hidden fees and terms and conditions that are difficult to read
are commonplace. They should read these flyers critically.
In addition, travel companies should take the following steps to avoid deceiving their customers:
1.
Advertise prices that include any mandatory fees, such as departure
taxes and processing fees. Potential fees and price increases should be
listed in readable type next to the base price.
2. Stop the use
of contracts that require travelers to give up their legal rights. All
parties to a dispute should be allowed their day in court.
3. Web sites and literature should prominently display a company’s terms and conditions and privacy policies.
4.
Contracts should be written in plain English so that what consumers
read is what they get. Disputes about flight and accommodation
logistics often result from intentionally confusing contracts.
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