As the Covid-19 restrictions are eased now and the physical movement of people has increased. People who have cancelled their tour plans are now looking forward to continuing the travelling. 2021 is expected to undergo a rise in travelling as compared to 2020.
Last was a bad year for the travel industry, it experienced its lowest revenue in 2020. Air travel is resumed, hotels are opened for accommodation and tourist destinations are welcoming tourists. But all of these factors also attract scammers to this sector. Scammers disrupt the travel sector and create trouble for both tourists and travel businesses. According to FTC, 35,796 travel-related complaints were lodged between Jan 2020 and Feb 2021 totalling a loss of $65.32 million. There are multiple types of travel fraud that are needed to be cleared for their prevention, here are some of them:
Timeshare Scam
It is also called vacation spot ownership, people who used to travel regularly must have heard this term. In this type of travel scam, a vacation point usually a hotel or resort suite is partially owned by different people. Each owner has ownership of the suit for a specific period normally the same one or two weeks every year. Scammers use attractive tactics like your stay will be ensured no matter what happens, or you will pay for your stay only.
This travel scam may look charming but actually, it is very complex. You are bound on a specific date and if you want to stay for a different time, you have to pay a heavy amount. The other type of timeshare scam is purchasing and selling of the property. Scammers claim that they have buyers of the property but actually, they just take the fee and disappear.
While purchasing people are scammed with the contract terms. It may have written that “to breach the contract any time with 100% money back” but in fact, it is just a lie. You can’t cancel the contract and if you do you didn’t get any money back.
Fake Travel Agencies
This is the most common type of travel scam, and everyone knows or experiences fake travel agencies scam. Scammers develop fake travel websites offering airline tickets or hotel accommodation at a cheap rate. They normally offer hot deals for the holiday season.
They target those destinations that are in everyone’s mind. Then they use social media platforms to promote this and use fake reviews to have credibility. They use an on-the-spot payment option, victims pay the amount through online payment options. When this travel scam pockets a huge amount to the scammers by multiple offerings, the website gets closed. More often they develop a new website after closing the one.
The website also pretends to be a mediator airline ticket booking agency. Then they do the same as in a fake travel agency scam. When travellers reach the airport they get to know that there is no seat booking on their name or no room booking. The other case is when the people have paid the amount, the scammer gives them a fake travel id of the seat. Travellers put that id on the airline website, and they found no booking against this reference number. The IATA calculates that the air transport industry annually loses $858 million in payment frauds.
False Service Offering
This is sometimes not considered a travel scam but a marketing tool. Hotels use fake pictures on their websites claiming to be their own. Also, they mention those services they are not providing. By doing so they can have more customers but the worst customer experience. People do not use these hotels again and never recommend them to others.
Concluding the Above Discussion
All the above travel scams are needed to be prevented to give seamless services to the customer and secure payments in the travel industry. There is no second opinion that if travel frauds are not eliminated, travellers may lose trust in travel websites. All travel businesses must use Know Your Business (KYB) and Know Your Client (KYC) verification while partnering with a third party. KYB checks the authenticity of the businesses and erases any chance of fraud. By verifying the websites, it can be said that the risk of travel payment fraud can be mitigated.
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Are you planning to travel to a location that is new to you?
Do not forget to go through the travel blogs of Nick Tsagaris McDonalds which is a bulk of information and will prove to be of great use to you while your travel.
His travel experiences have been of great use to the people who have read his blogs before deciding a travel destination.
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