Special Reports

Many Travel Clubs End Up As Trip Traps

CHICAGO (CBS) ― High prices for gasoline and airline tickets are leaving many of us at home this summer. That's why some consumers are being tempted to join travel clubs. They promise huge savings, but are they a real deal or a trip trap?

Jerry McManamon loves to travel, so when a postcard arrived offering a free Caribbean cruise, he was thrilled. But in order to cash in, McManamon had to attend a sales presentation for a travel club.

He says he was promised up to 60 percent off on airfare and hotel rates. The price to join: nearly $4,800.

"A travel club is a club whereby a consumer can pay a fee to join and they are told that by joining they'll get to take advantage of special travel offers," said Alison Preszler of the Better Business Bureau.

"If we could get a room normally $120 and we could get it for 60, that makes it a lot easier or more affordable for us to go," McManamon said.

But despite high hopes, McManamon feels like he was taken for a ride.

The Federal Trade Commission says travel clubs are on its radar.

"The FTC has taken action against 17 different travel clubs over the past several years," the FTC's Lois Greisman said.

And the BBB has logged more than 350 consumer complaints this year alone.

"We've heard from consumers who say that it was actually very difficult to book the travel that they wanted to through the company," Preszler said.

"What we've seen is that consumers can frequently get better deals on their own," Greisman said.

Tom Cross found that out the hard way. He shelled out thousands to join a club, but when he tried to book a condo, he found the travel club price was $500 more than if he booked on his own.

"That upset us and that's when we really started to question the whole operation," Cross said.

The BBB says it considers travel clubs to be "a suspect industry," but acknowledges there are a number of reputable clubs operating in the U.S.

"It's something that a consumer has to be very, very careful about before joining," Preszler advised.

If you want to join, the FTC says read the club's contract carefully and know the cancellation policy. Also, be wary of high-pressure sales tactics.

Of course, you can check with the BBB for prior complaints. There are several complaints registered against both McManamon and Cross's clubs, something the men wish they had known.

"I just don't want to see this happen to anybody else," McManamon said.

Both men tried to get out of their contracts but say they couldn't. CBS 2 contacted their travel clubs, but they did not return calls.

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