Where’s my deposit?

Question: I’m writing in the hope that you can help us secure the return of our deposits from a tour operator.

My mother and I booked a wine tour in Spain through a company called The Unique Traveller that we found online. We each made a deposit of $881, which amounted to 30 percent of the cost of the trip. We weren’t presented with any terms and conditions, nor were the terms available on the tour operator’s Web site.

We asked to see a copy of the company’s terms, which stated that if we canceled fewer than 45 days before the tour, we would forfeit our deposits. I spoke with the owner of the company, and he agreed to modify the terms, allowing us to get a full refund of our deposits if we canceled after 45 days.

Several months later, I was laid off from the law firm I worked at. Then my mother lost her job. We can no longer afford the trip. But The Unique Traveller — despite agreeing to a refund — has refused to send us our money back. Can you help us? — Debra Hitti, San Francisco

Answer: If The Unique Traveller agreed to revise its terms, then you’re entitled to a full refund of your deposit.

I’m just not sure if it made that promise. I reviewed the correspondence between you, your mother, and Ramon Ramirez, the tour operator, and found that although he implied you would get your money back, his language was sufficiently vague to avoid a refund. How clever.

A tour — particularly an overseas tour — is something you should buy through a competent travel adviser. A good agent will know which tour operators are legit, and will also be familiar with their cancellation policies. I’d be wary of any online tour operator that isn’t upfront about its terms and conditions.

Even if your agent gives a tour operator a thumbs up, you still need to do a little homework. Membership in the United States Tour Operators Association is a positive sign. To become an active member, a tour operator is required to show references and carry at least $1 million in professional liability insurance.

The 30 percent deposit is a little high, but not out of order. I’ve seen deposit requirements as steep as 50 percent. Not disclosing any of its terms and conditions on its site, however, is troubling. I searched the tour operator’s Web site, and couldn’t find anything, either.

If The Unique Traveller didn’t disclose its terms before or after you booked, and only mentioned its rules after you had already forked over one-third of the cost of your vacation, then that should have sent up a few red flags. A call to your credit card company might have led you to conclude that this tour was worth canceling, whether you planned to go or not. (Credit card companies take a dim view of these “gotcha” policies, and tend to help their customers recover their money when there’s a dispute.)

Once you had to call off your trip, you were stuck with three options. First, dispute the charges on your credit card. Second, negotiate with the tour operator and hope for a satisfactory resolution. Or third, go to court to recover your deposit. You opted for number two, and you did right by keeping everything in writing. But I think language barriers kept your case from being fixed.

I contacted The Unique Traveller on your behalf. Ramirez insisted he never promised you a refund on your deposit, and initially agreed only to allow your deposit to be used for a future tour. Eventually, he refunded you $701 each, leaving you with a smaller loss.

(Photo of gorgeous Spanish cathedral by marcp_dmoz/Flick Creative Commons)

  • John

    Chris …. One thing to remember is that the USTOA limits its membership to very large operators (7,500 pax per year). For people looking to travel in small groups or avoid “if its Tuesday it must be Killarney” type tours may not be able to find USTOA operator.
    Most important thing is references, length of business and understanding the T&C before making a financial committment.

  • Elisa

    How many times does it need to be said… why weren’t they insured? It’s not fair that they always make you their defacto insurance replacement, Chris.

    It’s a little tiring to see you constantly forced to beg and plead for people’s money back when they’ve lost it through no real fault of the company concerned. It’s much more interesting to see you do what you do best – dispense great advice, rather than having to clean up after people.

  • Arizona Road Warrior

    @ John: Chris is right that Ms. Hitti should have used the services of a travel agent when booking an oversea tour. Before all of the travel agent bashers start to post their comments, please understand that it seems that Ms. Hitti is not an experienced traveler. Does it make sense to purchase a $ 2,643 tour on the Internet from a foreign company (thus you are not protected by rules\regulations\laws such as the Attorney General, FTC, etc. if you were dealing with an US based company) where there were no T&Cs listed?

    For work, I travel on a regular basis (100+ flights a year, 100+ hotel nights a year) and I do all of my bookings online. However, I do use the services of a brick & mortar travel agent when we take an international (i.e. Europe, Asia, etc.) vacation.

    Also, Chris is right that you need to some research on the tour, the tour operator and etc. in addition to the information that you received from your travel agent.

    It is very strongly that a travel agent will recommend to Ms. Hitti to purchase a travel insurance policy. You can purchase a travel insurance policy that protects you if the tour operators goes out of business, if you are laid off from your job, cancel for any reason and etc.

    I agree with you that small tours are usually much better than the large tours. You are probably right that most small tour operators are not members of the USTOA since they can’t meet the specific minimums in terms of tour passengers and/or dollar volume for membership. IMHO, making it critical to deal with a professional brick & mortar travel agent to make sure that the tour is on the up & up in addition to the items that you listed in your comments\posts.

  • J C

    @ Elisa – I’m not sure there was no real fault of the company. As Chris describes it. A “vauge” promise of a late refund and no disclosure of their terms and conditions on it’s Web site, should be a warning light. Sounds like a company to avoid.

    However, you are right on with Insurance. For a pre-paid trip or large deposit trip of any kind It’s crucial, but insurance policies don’t cover all situations, so you have to be careful.

    They were not as vigilant as they should have been. They were lucky they had Chris to help

  • Arizona Road Warrior

    @ Elisa: I purchase travel insurance when we go on a tour or cruise because stuff can happen. Travel insurance is part of the cost of going on a tour or cruise.

    I agree with you that this story was a good opportunity for Chris to use his bully pulpit to preach the value of travel insurance. Chris should have mentioned in his article that Ms. Hitti should have purchased travel insurance to protect herself if the tour operator goes out of business (one time I read a policy stating that the tour operator to be a member of the USTOA), if she loses a job, if she became ill and etc.

    Hopefully, Ms. Hitti learned from this experience to use a travel agent and purchase travel insurance.

  • Carver

    @Elisa

    Check closer. These facts are a little different. If indeed the company promised to change its terms and conditions to allow a cancellation inside the 45 day window, as the OP states, then it is indeed the company’s fault if it failed to honor that agreement. Of course, that’s the dispute.

    @Arizona

    Speaking as one of those supposed travel agent bashers; The objection is not in using the services of a TA, but rather the not so subtle implication that a wise person always uses a travel agent regardless of the trip dynamics or traveller sophistication.

    In this case, I would say that a tavel agent is appropriate. The OP doesn’t appear to be an exensive traveller; there is an international component; and the tour operator appears a bit sketchy. e.g. no terms on the website?

  • http://www.clarksburgtravel.com Geoff

    What you all are missing is the real point. “ALWAYS” use a travel agent! The one with lunch at his/her desk and 3 lines on hold tells you how popular and desires that agent is. I work with the same clients 5,10, 20 times a year so that I know what they need. Make sure that they are ASTA or ARTA members! Online agencies take an Elliott to solve the difficult problems. I worked 6 months for a $127.00 hotel refund – I got it for the client!
    I charge $30.00-$40.00 for my work. Wow am I getting rich, but boy do the clients love the service. GET OFF LINE for all of your bookings.

  • david

    Boy, now we are helping Lawyers….. this blog has hit an all time low. ;o)

  • Jennifer

    If I’m reading correctly, Ms. Hitti knew the tour was non-refundable if canceled within 45 days of the departure date. This is not unusual. Secondly, she called the tour operator who agreed verbally to change the terms specifically for Ms. Hitti and her mother. While oral agreements are generally enforceable, how are you going to prove this was said? Ms. Hitti should have gotten this agreement in writing. Even if the operator refused to send her a confirming letter, Ms. Hitti could have sent a letter or email stating she was confirming their conversation of X date that our tour would be refundable up until X date, etc. If this does not comport with the operator’s understanding of the conversation, please contact her immediately. This would have made it clear who was in the right.

    Finally, I personally haven’t seen a travel insurance policy that covers job loss unless a cancel for any reason policy is purchased. Read the provisions of the policy carefully.

  • John

    Chris … Simple question. How far inside the 45 days did she go? As a Tour Operator owner, we have told people, after they ignored our strong advice to purchase travel insurance, that we would try and work with them. Only to have them call back the week before the trip and a month after the initial conversation demanding a full refund (by that time all my non-refundable payments are in suppliers hands and there is nothing I can do).

    @Geoff … No you shouldn’t always use a TA but I’m not going to get into that discussion here. I have lost count of the number of TAs that refuse to send business to us because our commission isn’t high enough (our statisfaction rating is over 95% but we don’t get that far with them). There are times to use a TA and times to avoid a TA (and before you say anything our business started as a brick and mortar TA so I know first hand the revenue pressures on a TA). It all depends on the individual and their comfort level.

  • John

    Jennifer … Some of the TravelGuard policies now cover job loss so they do exist.

  • http://www.cutcat.com Regina

    This is another clear case of the consumer failing to take responsibility. There was a red flag here from the start: Terms and conditions were not listed on the tour operator’s Website. The buyer then accepted a verbal promise on the phone without getting it in writing. Come on, how dumb is that? I agree with Elisa. Chris, your advice is great and you excel at righting real wrongs. Please stick to doing that, rather than helping people who did stupid things in the first place.

  • Arizona Road Warrior

    @ Jennifer – “While oral agreements are generally enforceable, how are you going to prove this was said? Ms. Hitti should have gotten this agreement in writing. Even if the operator refused to send her a confirming letter, Ms. Hitti could have sent a letter or email stating she was confirming their conversation of X date that our tour would be refundable up until X date, etc.”
    - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - –
    The tour operator is based in Spain (according to its website, it has two offices in Spain and one office in London); therefore, the laws, consumer protection laws and etc. of the US does not apply. In some countries such as China, there are no consumer protection laws so it buyer beware.

    @ Jennifer – “Finally, I personally haven’t seen a travel insurance policy that covers job loss unless a cancel for any reason policy is purchased. Read the provisions of the policy carefully.”
    - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - –
    Within the past month, I have been researching policies for a trip later in the year and I found a few that cover ‘employment related issues’ including loss of employment, unable to get time off and etc. There are at least five travel insurance providers, CSA Freestyle & Freestyle Luxe Plans, Travelex Select & Max Plans, Travel Guard Plans, Travel Insured Comprehensive & Gold Plans and TravelSafe, that provide policy that covers losing a job. As you stated, you can also purchase a ‘cancel for any reason’ policy.

  • Arizona Road Warrior

    @ Carver – “Speaking as one of those supposed travel agent bashers; The objection is not in using the services of a TA, but rather the not so subtle implication that a wise person always uses a travel agent regardless of the trip dynamics or traveller sophistication.”
    - – - – - – - – - – - – -
    I don’t advocate that everyone uses the services of a travel agent for every transaction. I only use the services of a travel agent when we take a vacation outside of North America due to the dynamics of the trip. In the past, there have been some posters\commenters that posted comments that a travel agent isn’t needed and that everyone can do their own bookings and etc. by themselves on the Internet regardless of the traveler’s PC skills, travel experiences, international component of the trips, if multiple airline carriers are required for the trip and etc.

    In most of the cases that Chris writes about, it seems like most of the people should have dealt with a brick & mortar travel agent because they were lacking in PC skills, travel experiences, their trip had an international components, multiple airlines carriers were involved and etc. to make their travel bookings.

    As Chris wrote in his excellent article, ‘Where the Service?’, for the National Geographic Traveler: ”But the Internet may be the biggest culprit of them all; it mostly replaced the ranks of travel agents and turned every travel experience except the super-luxurious into a commodity.” There are some people that think since they have an Internet connection, they can be their own travel agent and do their own bookings without regards to their travel experiences, the complexities of their travel and etc. “A person that represents himself has a fool as a client”…thus most people uses lawyers instead of representing themselves.

    Five years ago, my wife and I were researching some tours for a vacation. We came across one tour that we could have booked online without using the services of a travel agent. We contacted them and asked what is the price difference between booking online and going through a travel agent, they said it is the same price. We decided against this tour but even if we had decided to select this tour, we still would have used a brick & mortar travel agent in case if we ran into a problem during the tour and etc.

  • Steve

    “It’s a little tiring to see you constantly forced to beg and plead for people’s money back when they’ve lost it through no real fault of the company concerned.”

    On the contrary, this person was promised that the deposit would be refundable (granted, she should have gotten it in writing, but that doesn’t make it right for the company to renege on a promise). Furthermore, the fact that they don’t make the terms and conditions clearly available on their website makes me immediately side with the consumer on just about anything. If they’re not running a shady operation, there’s no reason not to disclose important terms like the refund policy. This isn’t like some of Chris’s other interventions where someone *was* clearly informed of the cancellation policy and then tried to circumvent it.

    I agree that travel insurance is a good idea in many situations, but I don’t think consumers should have to purchase it to protect themselves from the possibility that a company tells them an outright lie.

  • Jennifer

    Arizona Road Warrior- I’m not sure how it relates that the operator was based in Spain to what I said. It may be the case that it would be difficult, and expensive to sue the operator but if Ms. Hitti had gotten the terms of her oral agreement in writing, and had used a credit card (it’s not clear if she did or didn’t), she would have a much easier time proving what was said and prevailing in a dispute with her credit card issuer. As it was, she could not prove what the tour operator told her and the terms and conditions said 45 days making any dispute exponentially more difficult.

    As for travel policies, I have researched them as well and there are different levels of policies. A standard policy may not cover any job-related issues. A “gold” level plan may cover more exclusions and a “cancel for any reason” policy covers MOST anything. As I said, people need to read the terms of their policies carefully because a blanket statement that “she should have purchased travel insurance” may not have helped her in this case given it was a job loss issue.

  • SirWired

    @Jennifer: I know that with TravelGuard, at least, the “default” policy (the one they select for you unless you choose otherwise) does indeed cover cancellation due to job loss. It’s not an unusual insurance term at all for 3rd-party policies.

  • Elisa

    I think a few people need to look outside their own front doorsteps.

    There’s an enormous amount of collective myopia in (some unnamed country beginning with “U” and having a bunch of stars and stripes on their flag). Please stop assuming that all countries follow the same rules as back home. Granted it isn’t fair for any company to allude to something that it later fails to live up to – but which country is in charge and which authority will you complain to? Whose laws will you chant and how to you propose to force them to follow justice – indeed who decides what justice is? If you want to split hairs, the buyer has nothing in writing where the tour operator placed his physical signature to promise their money back. How would you propose to defend her “rights” – in an EU court – do you know the EU laws well enough? It becomes a different story doesn’t it…

    I’m not saying the buyer should deserve their loss, of course. It was understandably disappointing. But if you opt not to buy insurance, you do so on the understanding that if you can’t travel, YOU eat your money, not someone else. The buyer (1) knew she had no terms and conditions, (2) went ahead and bought anyway, (3) believed she might have a need to cancel right from the time of booking!, (4) opted not to take out travel insurance! and (5) works in a law office and is presumably not completely naïve about such things.

    If you look at the other side of the picture, the tour operator probably won’t be able to resell their places on the tour when it’s so close to the beginning date. A lady writes to a blog owner to beg rescuing… and the tour operator wasn’t the one who lost their jobs, yet they lose the money. Fair?

    Jennifer and Regina are spot on.

  • Arizona Road Warrior

    @ Jennifer – “Arizona Road Warrior- I’m not sure how it relates that the operator was based in Spain to what I said.”
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    A company that is based in Spain and that does business over the Internet is NOT subjected to the laws, rules, regulations and/or etc. of the United States of America. If they have an office in the US, that will be a different story. You can’t force the ‘consumer protection laws’ of one country onto a business that is operating solely in another country.

    A few years ago, I was at the Wal-Mart Superstore in Shanghai, China. We purchased a can of Nestle milk formula for our son who was 17-MO old at the time (regular milk in China tastes a little different from milk in the US). When we got back to our room, we discovered that one of the cans were not the correct type. We went back to the store within an hour to exchange it. It wasn’t opened, it was still sealed, we had our receipt and etc. At first, they didn’t want to exchange it. They said that there are no refunds or exchanges. We asked for the manager and we got them to exchange. Is this how a Wal-Mart store operates in the US?

    Even if you could force the contractual laws\rules\regulations\etc. on this Spanish based company, I did a quick research on verbal agreement and the bottom line is that the contracts for sales of goods priced over $ 500 require a written contract (some states have different amounts and etc.) (http://wiki.answers.com/Q/Is_a_verbal_agreement_legally_binding). When the company allegedly waived the 45-day cancellation period, the waiver should have been in writing in order to be valid per the US consumer laws\regulations\rules.

    1. No T&Cs on the website…she should have started looking for another tour that had T&Cs.

    2. Why will a tour operator waive the 45-day cancellation period? The tour operator must pay their suppliers, reserve rooms and etc. I doubt that the tour operator’s suppliers will refund the tour company’s money back to them. I considered myself to be a positive person but when it comes to business transactions, I automatically starts to wonder why is the company is giving me a discount (where is the catch? No cancellation policy, a smaller room, a room with a different view, etc.); why is the company changing the terms (where is the catch?); and etc.

    3. She should have used the services of a travel agent given that it was international travel and a lack of travel experiences.

    4. She should have purchased travel insurance in these economic times where people are losing their jobs to protect the investment that she made for this trip. My philosophy is to plan for the worst and expect the best.

    She was very lucky that Chris was able to get back most of her money.

  • thalassatx

    Why oh why would anyone book a trip with a company they’ve never heard of, that doesn’t disclose it’s terms on it’s website??

  • Ernest

    Travel insurance is not always what you think it is. I paid for travel insurance when the TA said it was required and used the insurance the TA said I needed to have. My mistake was trusting a real professional travel agent. When everything fell apart and my trip was a no go (through no fault of myself), the agent turned of their phone and the insurance was not worth the postage stamps they used to send it to me. I think it covered a plane blowing up or something but that was about it.

    I always get medical insurance because I travel outside the US but instead of paying an insurance company 20% of the cost of my trip, I keep it for my next trip. If I am not sure I can take the trip, I don’t buy the tickets and I don’t reserve a trip unless I am 100% sure I will go. I do all my own planning for overseas trips (4 per year, 30 days each) and I have not cheated myself yet.

    Travel insurance is over rated and over priced.

  • Arizona Road Warrior

    @ Ernest – “Travel insurance is not always what you think it is. I paid for travel insurance when the TA said it was required and used the insurance the TA said I needed to have.”
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    Never buy travel insurance from the tour company, cruise line or travel agent (most travel agents are not licensed as insurance agents; therefore, don’t have a clue). I buy my travel insurance from a company that specialized in selling travel insurance or my from inusrance agent who has my auto & homeowner insurance business.

  • Carver

    @Arizona

    Two thoughts

    1. An e-mail exchange can be considered a written agreement.
    2. Its not so much about forcing US consumer protection on another country, but if the company uses VISA/MC, it may be possible to get money back from VISA/MC

  • J P

    @David

    Where does the article say she is a lawyer? Simply because she worked at a law firm does not mean she is a lawyer. Read a little more carefully next time before you make what you thought was a clever joke.