Every year, consumer reports to Better Business Bureau (BBB) focused on travel, vacation, or timeshare scams significantly increase during three times of the year – in March during spring break, in July and August during the latter half of summer break, and in November and December during the holiday traveling season. In the fourth quarter of 2023, 12,000 reports of travel scams to the FTC resulted in $43 million in losses – a $20 million increase from Q4 2022.
Travel scams can take a variety of forms, but some of the most common include:
Vacation rental con.
These con artists lure in vacationers with the promise of low fees and great amenities. The “owner” creates a false sense of urgency – such as telling potential clients that another vacationer is interested in the rental – to encourage a target to submit a payment before they can do sufficient research or question the ad’s legitimacy.
“Free” vacation scams.
When a cruise or travel company advertises a vacation as free, it does not necessarily mean the trip is without cost or restrictions. Watch out for add-on fees for air transportation, port charges, taxes, tips and other undisclosed fees.
Third-party booking site scams. Exercise caution if you book your airfare, hotel, or other travel through an unrecognized third-party website. BBB Scam Tracker continues to receive reports of scammers pretending to be online airline ticket brokers. In the most common version of the scam, travelers pay with a credit card and, shortly after making the payment, receive a call from the company asking to verify their name, address, banking information or other personal details – something a legitimate company would never do.
As travelers solidify their plans and contact rental locations, travel agencies or hotels, BBB cautions Texas residents to be careful when interacting with anyone who uses aggressive sales tactics or promotes a deal that seems too good to be true.
Consumer Reports
In February 2024, a Bryan, Texas resident reported a travel agency accepted a $484 payment but failed to pay the airline which resulted in the booking being dropped. The travel agency refused to provide a refund, and told the customer that additional money would be needed for checked bags and to change their flight.
“We had to contact our bank to recoup the funds and cancel our debit card,” the consumer reported to BBB. “We then had to travel to the airport to confirm the scam and rebook a flight.”
In June 2024, a McAllen, Texas resident and their travel group lost a combined $20,000 to an impersonated travel agent who made false promises regarding the travel arrangements to Guadalajara, Mexico. Booked months in advance, complications began to arise as the departure date approached and the agent failed to provide expected updates and confirmations.
“Our trip was scheduled for June 20, 2024, and [the agent] notified us that morning at 6 a.m. that she was not able to confirm any travel for us,” the victim reported. “We had been advised our flight would depart that morning at 9 a.m., but no arrangements had been made. We were left empty-handed, and she refused to provide any refunds by using endless excuses blaming system errors.”
In October 2024, a Dallasarea resident lost $1,427 when they arrived at their pre-booked hotel in Boston, Massachusetts to learn that the third-party website they used for the stay did not accurately reserve the two rooms paid for by the guests.
“When I went to check in at the hotel, they said that they only had a reservation for one room,” the customer reported. “I showed them the receipt that stated I had two rooms, but the website had only reimbursed the for one room. I had to pay for the second room a second time.”
To avoid becoming a victim of a travel scam this holiday season, Better Business Bureau recommends prospective travelers follow these guidelines: Get trip details in writing.
Before making a final payment, get all the trip details in writing. Details should include the total cost, restrictions, cancellation penalties, and names of the airlines and hotels. Also, review and keep a copy of the airline’s and hotel’s cancellation and refund policies and the travel agency or booking site’s cancellation policies.
“Too good to be true” deals. As is common in various scams, if the deal or discount seems too good to be true, it probably is. Scammers often use this tactic to lure in potential victims and use aggressive “limited-time” language to entice travelers to pay before researching the business.
Avoid wiring money or using a prepaid debit card. Scammers know these payment options are fast, immediate, and challenging to reverse. BBB recommends using a credit card for online transactions whenever possible because it is often easier to dispute pending charges when a product or service is never received.
Call the rental owner or hotel. If you are not using a service that verifies properties and owners, be wary of negotiating a rental solely by email. Speaking directly with the owner on the phone and asking detailed questions about the property and local attractions will clarify whether the listing is genhotel uine. If using a third-party booking site, verify the hotel or rental has received your booking by contacting them directly.
Unsolicited offers.
Be cautious if you win a free trip from a contest or sweepstakes that you do not remember entering. This is especially true if the offer is time-sensitive and requires you to pay a processing or other fee to receive a promised reward. Check the official website of the company the promotion originates from to verify that it is legitimate.
For more tips on how to avoid travel scams, visit BBB.org/Travel.
If you or someone you know has been a victim of a travel scam, report it to BBB Scam Tracker. Information provided could prevent another person from falling victim.
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