Public, Agency Battles

How potent are travel industry trade associations in helping consumers?

Travelers who end up in disputes with travel agencies are usually told to contact the American Society of Travel Agents (ASTA) and the Assn. of Retail Travel Agents (ARTA), the two main associations.

However, the associations lack any real clout, they can’t force members to make refunds or even respond to letters from the association seeking an explanation of a specific situation, consumers say.

“We can help consumers in some cases, even with nonmembers, but they should understand that we don’t have the teeth to compel someone to make a refund,” an ASTA spokesman said.

“ASTA will act as a third party in an attempt to mediate a dispute. If a member is in the wrong and refuses to compromise or settle or even respond, that can be grounds for losing their membership.”

Patty Campbell, chairman of ARTA, agrees.

“Consumers should keep in mind that a trade association like ARTA is established for the benefit of its members, not for consumers.

“But we try to resolve conflicts, and if we find a member not living up to our code of conduct, we can terminate their membership. However, we lack the authority or power to force any sort of payment or settlement.”

Usual procedure after receiving a complaint is to write to the agency or company involved and ask for its side of the matter.

“If we don’t get an answer after 30 days, we write a second time,” the ASTA spokesman said. “And we may write a third time. If a member doesn’t respond, we refer the situation to our Ethics Committee, which will give the member one more chance before possibly rescinding their membership.”

Such correspondence to travel agents can also involve companies whose products the agents have sold, such as airlines, cruise lines, hotels and car-rental concerns.

Once a response is received, the groups review the matter. If the consumer is deemed wrong, a letter from the association will inform the consumer that the complaint does not have merit. The consumer, of course, can seek redress elsewhere, such as in small claims court.

Suppose the consumer’s claim is upheld?

“In 75% of the cases, if it’s a legitimate agency and it has the money, it will reach an agreement with the consumer,” the ASTA spokesman said. “In the other 25% of the cases, we refer the matter to the Ethics Committee.”

What about the guilty agency that either stalls or refuses to pay a refund altogether?

“We advise the consumer that they should go to small claims court,” the ASTA spokesman said. “But even winning there doesn’t mean they’ll get a refund, if that’s the issue. There’s still the matter of collection, which may require more legal action. And if the agency has gone broke, you can’t get anything, unless it’s through the bankruptcy process.”

One of the services ASTA can provide is a measure of preventive care.

“If people contact us about a specific company, and many do, we can let them know if we’ve heard about the company and if they’re considered legitimate,” the ASTA spokesman said. “We don’t make recommendations, but we can reassure or alert consumers.”

Complaints involving refunds are the usual cases. “If it’s a question about service or accommodations, then it may not be worth contacting us,” the ASTA spokesman said.

“Quality is a very subjective subject, and what’s considered comfort by one person may be roughing it for another. There has to be a specific complaint of something you’re supposed to get and didn’t get.”

Travel agents are convenient targets, according to Campbell. “The consumer hands his money over to agents, so it’s natural that they go after them. But the agent may not be at fault, and some complaints can be beyond the agent’s control.”

For example, a travel agent was sued by a customer seeking a refund of money the agent turned over to a tour operator, which then became defunct.

“The agent did what he could to get the money back, since the customer never took his trip, but the tour operator was out of business. The agent won this case.”

Although agents and suppliers may be held liable for any element of travel promised but not delivered, establishing what the promises were and who is responsible can be difficult.

Consumers should take note of what agents say about promotional literature, and see if the agent has any clarifications or comments on the product.

Agent Disclaimers

Many agents are using disclaimers as preventive legal measures.

However, before you consent to a disclaimer, ask the agents if they have worked with this supplier before and if the company has a good reputation. Even though you signed a disclaimer, a travel agent, or anyone else, isn’t off the hook. One can still sue, but it may be harder to win.

The process of contacting trade associations and possibly taking legal action often deters people from pursuing their claims. Problems can sometimes be avoided by dealing with reputable companies, and carefully reading brochures and other tour documents.

Fully understand all documents before you plunk down any money. And if a cancellation policy isn’t in writing, that can be suspicious.

ASTA’s West Coast office is at 4420 Hotel Circle Court, Suite 230, San Diego 92108, phone (619) 298-5053. ARTA’s West Coast office is at 2515 N. Main St., Santa Ana 92701, phone (714) 834-1420.