Dale Dixon, Chief Innovation Officer for the Better Business Bureau Great West & Pacific joins producer/host Coralie Chun Matayoshi to discuss whether travel agencies that operate in Hawaii have to be licensed and maintain a client trust account, how to find a reputable travel agency, what the law requires travel agencies to give you in writing, why it’s a good idea to pay by credit card, cancellation and refund policies, and what to do if you’ve been scammed by a travel business.
Q. Summer is peak travel season and maybe you want to get out and explore someplace you’ve never been before or take off on a dream vacation. But you don’t really know where to start and don’t have time to plan. That’s when a travel agency might be able to help. But who do you trust and what can they offer?
Travel agencies can help plan your itinerary and make travel arrangements for you. Oftentimes, they know the country or area you are visiting and can recommend hotels, restaurants, sightseeing, day tours, and activities. Travel agents can book your airfare, hotel accommodations, car rental, and assist with passports, visas, and other required documentation. They can advise you on time differences, local customs, tipping, currency exchange, and help secure travel insurance to cover trip cancellations, medical emergencies, or other unexpected events.
Q. How can you find a reputable travel agency, and do they need to be licensed?
Ask your family, friends, colleagues and others you trust for recommendations. You can also research online reviews on platforms like Yelp, TripAdvisor, or Google Reviews. You can interview the travel agent before you hire them. Discuss your specific travel needs and preferences because some agents specialize in certain types of travel like cruises or international destinations. Pay attention to how they communicate, and the level of customer service provided. Also, check the agency’s Better Business Bureau listing for any complaints. Any individual or business operating as a travel agency in the State of Hawaii, including online sellers, must be registered with the Department of Commerce and Consumer Affair’s Professional and Vocational Licensing Division. You can check if they are licensed by calling (808) 587-4272 or online at cca.hawaii.gov/businesscheck.
Q. How do travel agents earn their money?
Travel agents receive commissions from travel suppliers and for some client services (e.g. booking hotel rooms, cruise line reservations, vacation packages, tours, excursions). Some larger agencies may also purchase travel products in bulk at a lower cost and sell them at a higher price. It’s something to keep in mind when heeding their recommendations on how to spend your time and money.
Q. Are travel agencies required to deposit customers’ money into a trust account for safekeeping?
Hawaii law requires registered travel agencies to maintain a client trust account in a federally insured financial institution located in the State. When receiving money from a consumer for travel services, the travel agency must deposit the money into the client trust account and funds should only be withdrawn to pay for travel services or to make required refunds.
Q. At the time of payment, Hawaii law requires the travel agency to furnish you with a written statement before they issue you a ticket. What information does this statement include?
- The name, business address, and telephone number of the travel agency;
- The amount paid, the date payment is due, the purpose of the payment to be made, and an itemized statement with the outstanding balance;
- The name and address of the financial institution of the Hawaii institution that maintains the travel agency’s client trust account and the name of that client trust account;
- The name of the entity who will be providing your travel services and pertinent information, including the type of accommodation and the dates and times of services;
- Any restrictions, limitations, conditions, and fee assessments that affect your right to cancel, obtain a refund, change an itinerary, or make a claim for lost tickets; and
- The cancellation provisions of the contract between you and the travel agency, and the rights and obligations of both parties in the event of a cancellation.
If you don’t receive this information, contact the Department of Commerce and Consumer Affair’s Regulated Industries Complaints Office (RICO).
Q. Is it a good idea to pay by credit card?
If you use a credit card to make major purchases, typically there is additional protection for those purchases. If you used a credit card to pay for some, or all of your vacation plans, contact the financial institution to find out what type of coverage is included. You may also have the option of purchasing travel insurance through your credit card company. https://www.bbb.org/article/news-releases/18108-is-travel-insurance-right-for-you. But don’t give the travel agency your credit card number in advance; wait until you are ready to make the arrangements. Once you pay for travel services with a credit card, Hawaii law requires the registered travel agency must submit the charge data to the appropriate payment processing or card issuing company within 5 days of the charge.
Q. So, you make full payment to the travel agency, how can you be sure that your airline, hotel and other arrangements have actually been booked?
Upon making full payment to the travel agency, you should receive your ticket or other similar documentation for travel services from the travel agency. If you’re told a ticket is electronic, make sure the travel agency gives you a reservation number and any other instructions you need so that you clearly understand where you need to go and what information you will need to have with you. Don’t hesitate to call the airline, hotel, or other service provider directly to confirm your reservation or ticket. Make sure you have the information provided to you by the travel agency on hand.
Study the airport you’re going to and ask about layovers. Although a short layover time may be “legal” or allowed by the airline, if you’re traveling with kids or just need extra time to get around, ask if you may need additional time. This is especially important if you need to go through customs upon arriving back in the United States.
Q. What about extra costs that might not be included in the travel package?
Be sure you know what’s included in the cost. Extras, like luggage fees, parking at the hotel, and resort fees can really add up. Write down any questions you have about what’s covered and don’t feel shy about asking the person you’re working with what’s included in the price.
Q. What if there’s a problem during the trip, who can you contact?
Ask the travel agent you are working with what to do or who to contact if there’s a problem with your reservations. What if it’s after hours? What if you’re overseas?
Q. What if something happens and you have to cancel your trip – can you get a refund from the travel agency?
You should ask about cancellation and refund policies before purchasing any travel service. Make sure the travel agency explains any limitations, conditions, events, circumstances, or any other business or commercial factors that may affect the availability of the travel services or your ability to obtain a refund. Generally, under Hawaii law, if you cancel your travel arrangements, you have the right to a refund within 14 calendar days from the date the refund is requested, of all moneys paid to the travel agency, less (1) any amounts for cancellation fees that were previously disclosed to you; and (2) any amounts held by the ultimate provider of the travel services (e.g. the airline or the hotel).
- Cancellation fees. Some travel agencies charge a cancellation fee, which is sometimes a percentage of the total price you paid for the travel service.
- Refund policies. If the travel agency has already paid a service provider (e.g. the airline or the hotel), you may have to contact the service provider to see about getting your money back. A travel agency may also ask you to sign a statement that no refunds will be made if you are unable to complete your scheduled travel arrangements. This means no refunds will be made under any circumstances, even in the event of illness or death. If you signed a statement with the travel agency that no refunds will be given if travel services are canceled, you will not receive a refund, so it’s important to read and discuss anything you’re asked to sign. Make sure you understand these provisions and be aware that you may incur additional expenses should you wish to change your original travel arrangements.
Q. What rights do I have if I've been scammed by a travel business?
You can file a complaint against a travel agent with the Hawaii Department of Commerce and Consumer Affairs (DCCA) and its Regulated Industries Complaints Office (RICO) or Better Business Bureau and can also report a fraud to the Federal Trade Commission (FTC). Keep all documentation related to your travel, including correspondence with the travel agent and receipts. You'll need this information when filing a complaint, credit card dispute, or taking legal action.
Source: The Department of Commerce and Consumer Affairs (DCCA) Regulated Industries Complaints Office (RICO) offers tools, tips and services you can use to check out an individual or business. Information is available by calling (808) 587-4272 or online at cca.hawaii.gov/businesscheck. To call Oahu-RICO, dial the following toll-free numbers: Kauai 274-3141, extension 74272; Maui 984-2400, extension 74272; Big Island 974-4000, extension 74272; Molokai and Lanai 1-800-468-4644, extension 74272, followed by the # sign.
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Disclaimer: this material is intended for informational purposes only and does not constitute legal advice. The law varies by jurisdiction and is constantly changing. For legal advice, you should consult a lawyer that can apply the appropriate law to the facts in your case.