Saving with 6abc: The truth about travel clubs

Nydia Han Image
Tuesday, December 30, 2014
VIDEO: The truth about travel clubs
They promise years of discounted airfare, hotels and dining. But buyer beware.

Expensive vacations to exotic places often seem out of reach. So many people join travel clubs in hopes of saving money. They promise years of discounted airfare, hotels and dining. But buyer beware.

Consumer Reports has found hundreds of travel clubs that seemed to offer dream vacations quickly turned into nightmares. Bottom line is they may not be worth your money.

Theresa Raimondi received an enticing offer in the mail - free round-trip airfares if she and her husband would attend a sales pitch in a nearby office and consider joining a travel club.

Theresa explains, "They promised us that we were going to have the best vacation at the cheapest price that we could ever believe. That you could get a five-star hotel for $45 a night. We could get airfare $100 round trip."

She forked over more than $6,000 for a lifetime membership. But she was never able to book a discounted trip. And when she went back to the office to complain, the company had disappeared.

Consumer Reports says problems with travel clubs have been found throughout the country.

Margot Gilman from Consumer Reports tells us, "The attorneys general of several states have gone after at least six of these clubs obtaining settlements from $50,000 to

$7 million. And in at least one case, an owner was sentenced to prison."

The scheme Theresa fell victim to had many of the red flags you should watch out for: An unsolicited offer, like the postcard promising free airfare, a high pressure sales presentation, and expensive up-front costs.

Theresa eventually was reimbursed about $2,000 from a judgment against the company, but says she is still out about $5,000.

Before you spend money on a travel club, research it online. Do an internet search of the company name. Also try searching the name with the word "complaints".