What Consumers Should Know About Travel Industry Card Mills
by Cynthia Bercowetz
Naples, FL  34104   February 7 2006
 
I recently experienced a situation that I want to warn others before they get involved in a card mill. My husband and I were asked to come to a seminar on travel. We would become travel agents at a cost of $6,895 and a registration fee.
Many consumers were signing up because they might get a free vacation to Las Vegas or the Bahamas. This type of travel agency is considered unethical and misleading to the consumer, according to Kathryn W. Sudeikis, vice president of corporate relations. American Society of Travel Agents.
These travel agencies are selling deceptive travel agent credentials--card mills, according to ASTA.
ASTA states that card mills are businesses that sell deceptive identification cards, sometimes accompanied by a package of worthless 'training materials' that falsely identify the purchaser as a 'travel agent.'
Sudeikis warns that these businesses sell a piece of plastic where any tangible benefit the purchaser receives is wholly dependent upon the response of a third party travel supplier who is deceived as the cardholder's true status.
In addition, some card mills emphasize the purchaser's opportunity --reminiscent of classic pyramid and other illegal multi-level marketing schemes--to recruit other 'agents' and earn fees for each recruit as well as each time the recruit books travel.
"In all cases", ASTA states, "the primary theme and message of their promotions is that the purchaser can enjoy all the benefits and financial rewards of professional travel agents with no worry, no hassle, and, above all, no work.
Why are they harmful?
Card mills cause travel suppliers to waste sales incentives on people who do not sell travel, according to ASTA.
"When a false credential holder successfully fools a supplier into conferring a professional courtesy, the information gathered by the supplier on the use of these incentives is corrupted," the vice president of ASTA said.
What Are Some of the Signs of a Card Mill:
Examples of deceptive messages and representations that card mills commonly employ:
- The cards expressly represent that the holder is a 'travel agent' and imply that the holder is actively engaged on an agency's behalf in selling travel to the general public. It is not so!
- Ads promise glamour and the high life at a bargain, and the chance to make money with little or no effort.
- Card mills' promotional literature is replete with references to cards or cardholders' status as being 'official ', 'certified,' or 'accredited,' falsely implying that persons who purchase these cards automatically enjoy good standing with industry accrediting bodies or with suppliers generally.
Card mills fail to disclose in a prominent manner, that suppliers such as airlines and some large hotel chains will not honor the card at all if presented in support of a request for agent discounts.
Tips for Consumers
- Consumers simply interested in obtaining the best travel bargain should be highly skeptical of offers that require them to purchase an identification card or otherwise suggest that they are being taken into the offeror's business.
- Consumers should ask themselves whether they are buying the card merely for the purpose of receiving deals on their own travel.
- Before buying a card, consumers seeking travel bargains should comparison shop for several trips they might like to take, inquiring from several sources including traditional travel agencies and on-line travel agents.
- Ask whether the additional cost of the card will be offset by any savings on travel services of comparable value.
- Always obtain brochures and other written documents specifically describing what they are being promised. We did not receive any.
- Check with the supplier whose services they are interested in, in advance, as to whether it will recognize the card or other claimed affiliation as a basis for providing them with discounts or upgrades.
- People interested in travel sales can go to www.astanet.com/education/travelschools.asp to see the list of ASTA travel school members.
Check with the Better Business Bureaus at www.bbb.org and/or the Attorney General's consumer protection office in the area to see if any complaints are on file. This is a must!
If you are asked to be a member of a card mill, report it immediately to the American Society of Travel Agents, 1101 King St., Suite 200, Alexandria, VA. 22314.
If any offer sounds too good to be true, it is!
 
Cynthia Bercowetz (consumreye@aol.com)
Author/Consumer Advocate
738 Landover Circle, C 102
Naples, FL   34104
Phone : 239-455-1694

 

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