Texas targets “unethical” Royal Palms Travel club

They promised Hans Slatosch the world. Literally.

In a sales presentation he attended a year ago, Dallas-based Royal Palms Travel offered him deep discounts on cruises and other travel products. All he had to do was pony up a $5,593 membership. He did.

But something about the transaction made Slatosch uncomfortable. The sales staff had pressured him to make a decision before he left, and they wouldn’t let him keep the material they’d distributed, he says.
Continue reading…

33 Comments


It’s alive! Prime Travel Protection pursues customer who didn’t want “insurance”

credit cardRemember Prime Travel protection, the Colorado travel insurance company that shut down amid allegations it sold unlicensed policies? Turns out it’s not dead yet.

When Dick Rheinhardt booked a cruise vacation through Four Seasons Tours and Cruises, in Largo, Fla., last November, he agreed to pay $824 for what he believed to be a travel insurance policy. But it wasn’t a real policy, he says. A few months later, Florida authorities told three agencies that Prime Travel Protection policies might be bogus. Rheinhardt wanted a refund.

That’s when he discovered Prime Travel Protection was alive and well.
Continue reading…

One Comment


TripAdvisor’s Kaufer: We “catch the vast majority of suspicious reviews”

Steve Kaufer is the founder and chief executive of TripAdvisor — a site that made headlines recently when it warned that some of its hotel reviews might have been manipulated. I asked Kaufer about the site, the credibility of user-generated reviews, and the future of social media.

KauferQ: When it comes to user-generated hotel and restaurant reviews, I think it’s safe to say TripAdvisor is by far the most dominant site. Can you give me a sense of the size, traffic and overall influence of TripAdvisor?

Kaufer: TripAdvisor has nearly 25 million reviews and opinions on more than 490,000 hotels and attractions, more than 11 million registered members, and operates in 14 countries and 10 different languages. We have more than 25 million monthly visitors to our site, and have acquired 13 other travel brands. In terms of influence, a May 2008 Jupiter consumer travel survey reported that 76 percent of people find reviews from like-minded people most useful.

Q: Let me ask you about last week’s Beat of Hawaii-Arthur Frommer dust-up. TripAdvisor is now warning users about hotels gaming in the review process. Can you tell me why you decided to do this, how long you’ve had these warnings, and how many reviews are affected?

Kaufer: We’ve been posting the warnings since 2006. We view our red badge and rating drop as the best punishment for properties trying to manipulate the system. A couple of people have asked why we don’t drop these properties from the site entirely. We think the red badge is a better punishment, and provides more information to travelers so they can make the most educated and informed decisions before they book. We also wouldn’t want hotels with very poor traveler reviews to use such a banning on the site as a loophole to get out. That’s exactly what poorly run properties want — to be taken off TripAdvisor.

Q: One of the things TripAdvisor uses to catch bogus reviews is a computer program. Why can’t the algorithm tag these fake write-ups?

Kaufer: We have three primary methods to insure review integrity. Prior to posting, every review is screened and a team of quality assurance specialists investigates suspicious ones. This group brings a wide range of professional experience, including expertise in credit card fraud, loss prevention and identity theft. We also use proprietary automated tools to help identify attempts to subvert the system, and our community helps screen our content and report suspicious activity. These systems do catch the vast majority of suspicious reviews.

Q: What would you say to readers of your site who are concerned about the integrity of your hotel and restaurant reviews?

Kaufer: We believe our 23 million reviews and opinions are authentic, unbiased, and from real travelers, which is why we enjoy tremendous user loyalty. The sheer volume of reviews we have for an individual property allows travelers to base their decisions on the opinions of many and provides an additional safeguard. After all, any individual review is just that… a review by one person who may or may not have the same tastes as you, or be in a good or bad mood when they wrote the review. But when looking at the average of hundreds of reviews for a single property, the collective wisdom shines through and presents a complete picture of the property.

Q: Some TripAdvisor critics were quick to add their “I-told-you-sos” last week. Can you understand where these folks are coming from? Could you help us make some sense of why they’ve been critical of your site?

Kaufer: Some of those critics have a horse in the race. Professional guide books and travel agents are losing audience to TripAdvisor and other UGC sites. Forrester research shows that 68 percent of travelers read reviews from other travelers before they book. The same research shows only 38 percent turn to professionally written content. The average guidebook takes 15 months from manuscript submission to hitting the store shelf. TripAdvisor gets 13 new posts every minute of every day, so it’s the freshest travel information available.

We don’t have anything against professionally written reviews. In fact, we have links to many professional reviews on TripAdvisor today, as we have had since we launched the site. We’re happy to have our visitors find all the available information on the Web to help them make the right travel decision for them.

Q: How do you use TripAdvisor when you’re on the road? And how do you think people should use the site?

Kaufer: TripAdvisor has a lot of features that are valuable at different stages of the trip. When in the initial planning stages, I’ll use the inspiration section on the home page to help me select a destination. I’ll use our flights product to find the best airfare, and then use our hotel mapping functionality to pick the best hotel near where I want to be. If I’m traveling on business, I head to the business center, as that section highlights the hotels that are good for business, as well as offer restaurant suggestions for a business dinner. When I’m traveling with my kids, I’ll look for top-value hotels which save me some money, and I’ll read the reviews written by folks who traveled with their kids. And like all of our visitors, when I read the reviews, I take the best and worst reviews with a grain of salt, and focus on what the majority of reviewers have to say. My favorite ‘hidden’ feature of TripAdvisor is our forums. No matter what I ask in the forums, I always seem to get a good answer within 24 hours.

Q: Is there a way in which people are using TripAdvisor that you think they should not?

Kaufer: From a consumer perspective, there’s not necessarily a wrong way to use TripAdvisor. I think some of the posts on your blog represent unique and useful ways to use our site.

Q: Oh, thanks. I want to ask you about services such as Returnity, that funnel positive reviews about a property back into TripAdvisor. Doesn’t a hotel using a service like this have an advantage over another hotel that relies on the organic review process for its rating? Is that fair?

Kaufer: My understanding of Returnity-type services is that they facilitate communication between hotels and their guests and, by requesting feedback on a stay, give the hotel an idea of who might write a positive versus negative review. Nothing from Returnity is pre-programmed and uploaded into TripAdvisor.

Q: Do you have any statistical evidence that a positive review on TripAdvisor leads to more bookings or that a negative review takes away bookings? If so, could you please tell me what it says?

Kaufer: We have partners who feature TripAdvisor reviews on their sites, and claim that their bookings have increased — in one case, doubled — with the inclusion of these reviews. And these include both positive and negative reviews. We work with a lot of properties who have found TripAdvisor widgets and badges to be valuable marketing tools.

Anecdotally, we hear from travelers that negative reviews aren’t nearly as impactful as how a property handles them. We do a lot of outreach to business owners and encourage them to use the management response tool that’s available on our site. We know there are always two sides to every story, and we encourage property managers to share their side of the story, or simply apologize if a mistake was made. Anecdotally, we also hear from property owners that TripAdvisor has helped them grow their business.

With millions of travelers using TripAdvisor daily, it is hard to imagine that we don’t influence where travelers are choosing to stay. However, it isn’t something we’ve tried to measure.

Q: With the introduction of video on the new iPhone, we may be poised for a shift from “tell me” to “show me” user-generated reviews. How is TripAdvisor going to position itself in world where information is exchanged in real time, and in a more multimedia way?

Kaufer: We’ve been encouraging travelers to upload photos and video to TripAdvisor for a long time. We’d love to see the use of these tools increase — anything to help travelers make more informed decisions about their trip.

Q: Let me ask about your slogan, which is, “Get the truth. Then go.” It seems to me that the content you’ll find on TripAdvisor is highly subjective, and that your recent warnings are a concession that the reviews are nothing more than one person’s — or company’s — opinion. Do you have any plans to change your slogan, now that you’ve conceded that some of your ratings may have been manipulated?

Kaufer: It’s never been a secret that reviews are subjective, and that they are individuals’ opinions. That’s the power of user-generated content. It’s up to the traveler, with the help of our popularity index and filters, to review the data that’s meaningful for them, and to listen to the wisdom of the crowds. Everyone’s true travel experience is their own. I’m certainly biased, but I’ll always prefer a hundred reviews from real travelers, each recounting a different experience, than one review from a professional writer who is basing his or her opinion on a single experience with a property. TripAdvisor is still the best place to get the truth, then go.

9 Comments


Florida confirms “active and ongoing” investigation of travel agencies that sold Prime Travel Protection

Florida’s Department of Financial Services has confirmed it is investigating travel agencies that sold insurance underwritten by Prime Travel Protection, a Colorado company that filed for bankruptcy protection last month and left thousands of travelers uninsured.

Prime Travel Protection sought to circumvent state regulations by claiming it wasn’t insurance. Jerry Watson, the company’s president, said Prime Travel Protection’s policies were “not an insurance product” and didn’t need to be licensed.

Florida authorities disagree. “This product was claimed to be insurance,” said Nina Banister, a spokeswoman for Florida’s Department of Financial Services. “It does not appear that Prime Travel Protection was an authorized entity. We’re looking for agents who were involved in selling it.”

Under Florida Statutes, any agency or agent selling unauthorized insurance faces fines and a possible suspension of license:

Any person who knowingly transacts insurance or otherwise engages in insurance activities in this state without a license in violation of this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

Banister says Florida wants to hear from anyone who bought a Prime Travel Protection policy through a travel agency in the United States. She asks that they either call Florida’s consumer help line at (877) 693-5236 or (850) 413-3030, or fill out a complaint online.

The investigation, which appears to be in its early stages, could affect hundreds of travel agencies and thousands of travelers.

According to numerous customers, travel agencies falsely represented the Prime Travel Protection product as travel insurance. Travel agents claim that they believed Prime Travel Protection to be legitimate insurance, and that they immediately stopped selling its policies when they learned it was an unlicensed insurance product.

But Florida authorities are conducting a thorough investigation, and are interested in hearing from travelers who bought policies through other defunct travel insurance companies Watson was involved with, including Trip Assured, Vacation Protection Services and Travelers Protection Services. The punishment for travel agencies who sold those insurance policies and then continued to sell Prime Travel Protection could be severe.

“There is no statute of limitation on this,” Banister said.

44 Comments


Don’t let a self-serving survey ruin your trip: 8 tips

Southwest Airlines is the top air carrier in the United States. No, wait, it’s American Airlines. Hang on — make that Virgin America.

The best hotel? The Peninsula Chicago. No, no. It’s The Waldorf Astoria in New York.

That’s the consensus — if you can call it that — of the latest round of travel polls and “readers choice” surveys. The results are all over the map — literally and figuratively. None of them seem to agree on anything, leading me to wonder if any of them are believable.

Here’s the problem: Travelers make important vacation decisions based on these questionable surveys. And with more media outlets jumping into the survey game every year, the chances you’ll be at confused or even misled are better than ever.

One new poll claims travel agents voted New York’s John F. Kennedy airport as their favorite. Nonsense, says another — people prefer Las Vegas’ McCarran International Airport. (The correct answer is Orlando International Airport, if I do say so myself.)

Why do these surveys contradict each other? The obvious explanation is audience and methodology. Although in some instances, calling it a “methodology” is generous. None of the travel polls are particularly forthcoming about how the sausage is made.

But there’s more. As someone who has practiced journalism for a little while, I know that the publications sponsoring these awards aren’t necessarily doing this as public service. Awards are marketing tools. Ads are sold around the final results. Award dinners and plaques can be big moneymakers. They also raise the publication’s profile.

Put differently, these aren’t travel industry awards — they are an industry unto themselves. And it’s an industry that isn’t necessarily concerned about your next vacation.

Here’s how to spot a self-serving survey:

1. Beware of resorts that over-publicize their awards
I realize this isn’t going to make me any friends in the public relations community. But airlines, hotels and cruise lines that snag one of these dubious awards and then blast a press release about their accomplishment to every travel journalist on the planet are hurting themselves. They think they’re sending one message: “Stay with us — we won a five-star/best-of/readers-pick award!” In fact, they’re probably sending another one: “We’re insecure. We need someone else to validate our product. We don’t really believe in ourselves.” Never mind what it says about the award.

2. Some methodology is better than no methodology
Always look for a few details about how the poll was taken. How many readers were surveyed? What was the response rate? Did they use an independent company to compile the results? Most importantly, how did they determine who was on the ballot? Was it just a group of editors sitting in an office, adding their favorite hotels to the list? Or were the finalists the result of a popular vote? None of the major awards reveal all of these facts, as far as I can tell. The more reputable ones disclose some of their methodology. The bogus ones don’t publish any of it.

3. A ‘best-of’ list without a ‘worst-of’ list is pointless
Surveys that highlight only the positive aspects of travel are in serious denial. The most credible awards acknowledge both the winners and sinners. For example, SmarterTravel.com recently asked readers to name their least favorite airline and the carrier with the dirtiest cabin. Troubled US Airways won both honors. Handing out an award without having something to compare it to is meaningless. So if your favorite media organization only talks up travel, maybe it’s time to find another favorite media organization.

4. Big numbers equal big trouble
One of the biggest lies you’ll find in a travel survey is the number of respondents to a poll. I’ve seen claims that range from more than 100,000 (unlikely) to more than a million (impossible). Why exaggerate? Because it makes a poll look credible. When you see an unrealistically big number, you should think the opposite. Remember: if it looks too good to be true, it almost certainly is.

5. Are the winners running ads in the publication that honored them?
If they are, the survey is probably junk. I can practically guarantee that someone from the advertising department promised a “favorable consideration” in exchange for advertising. Here’s a handy rule: The closer a resort’s ad appears to the poll in which it wins its award, the less credible the poll. Trust me on this.

6. If something doesn’t look right, the survey is probably wrong
Here’s another sign something may be amiss: the wrong companies are winning awards. For example, you’d expect an airport like Singapore or Hong Kong to take top honors in a reader’s survey. But when an airport that people don’t just dislike, but actively avoid, gets top billing —well, you know something is fishy.

7. Look for obvious, but unstated, biases
These aren’t ever disclosed, but they have to be considered when you’re reviewing the results. A magazine devoted to luxury travel isn’t going to recommend a hotel with reasonable rates.

An online publication that caters to budget travelers is likelier to vote up a hostel than a five-star resort. Editors can also play a huge part in shaping the results you see. They can exclude categories, downplay entire industry segments and make insignificant businesses seem monumentally important. Boutique hotels, anyone?

8. Some awards are not meant to be
There’s a class of travel awards that should probably be completely discounted. One well-known site conducts a survey of the cleanest airport restrooms. Think about that. Are you going to base your decision to use an airport on its bathroom facilities? Another travel magazine rates the top airline loyalty programs. But that assumes you have a choice in loyalty. In today’s recklessly deregulated, oligopolistic airline industry, practically no one has that luxury. Oh, and you have to ignore the irony that the award is named after an airline entrepreneur whose carrier never had a frequent flier program.

It would be easy to dismiss every travel award as flawed, if not fraudulent. But then I wouldn’t have any data with which to commit acts of journalism every week.

Instead of ignoring every poll, I’d take a closer look at each one before making an important vacation decision. Is it balanced? Does it acknowledge the reality of travel? Is it using sound methodology? And is it useful?

If the answer to any of those questions is “no” then do yourself a favor. Turn the page.

No Comments