Bidder beware on travel auction sites

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October 12, 2008

There are bargains on travel auction sites, but do your research, writes Jane E. Fraser.

Auction websites are making big inroads into the travel industry, with consumers now able to place bids on anything from hotel rooms to tours and cruises. Travellers are attracted to such sites by the promise of a bargain: the potential to either spend less or get a more luxurious holiday for their money.

An extensive search of travel auction sites by The Sun-Herald came up with varied results, including excellent deals, mediocre deals and a few nasty traps.

One luxury Gold Coast hotel suite we watched sold in an auction for a mere $360 for three nights.

A check of the hotel's own website found that, while the travel auction site had dramatically overstated what the package was worth, the auction price was still very cheap.

The lowest rate on the hotel's website for the same dates was a little more than $700, making the auction price a bargain.

However, many prices found on auction websites turned out to be the same or similar to those available through other sources, including booking directly with the hotels. What were being held up as cheap auction prices were, in fact, standard low-season rates or routine promotional offers from the hotels.

Another possible trap was auction sites selling discount vouchers rather than actual holidays. Some hotels came up in searches with very low prices but the stated rate turned out to be the cost of the discount voucher, not the accommodation itself. The voucher could save a lot of money but the sellers rarely take responsibility for availability of the dates you want to travel.

If you are considering buying a discount voucher, double-check and triple-check if there are any conditions or blackout periods that might make it difficult to redeem.

Checking the conditions and fine print applies to any auction purchase. One offer found on a popular auction website looked like a great deal but had a condition that the buyer must attend a "presentation" during their holiday. Such presentations usually prove to be pressure-selling sessions and should be avoided - not to mention that it is your holiday and you should be free to do as you please.

The website states that travellers who refuse to attend the presentation during their stay may be charged the full rate for their hotel room.

Another thing to be wary of when bidding for travel is that it is easy to get carried away or make bad decisions under time pressure.

Auction sites tend to use phrases such as "book now", "be quick" or "last chance", yet there is every chance that an identical package will be listed once the current one has sold.

One final warning: hunting through online auctions can be extremely time-consuming. By the time you have compared the prices, checked all the conditions, looked up the pictures of the hotel and made sure you are booking with a legitimate agency, you will probably have spent many hours on the task.

Then again, you might just get a bargain.

AUCTION CHECK LIST

* Are you buying the actual holiday or just a voucher?

* Cross-check the price against other sources.

* Don't be fooled by claims about the full, or "normal", price.

* Check for blackout dates and special conditions.

* Check that there is a licensed travel agency behind the site.

* Check what currency the price is in.

* Don't be rushed into making the wrong choice.

IS YOUR MONEY SAFE?

One of the problems with travel auction sites is that it can be hard to know who you are dealing with.

Glen Wells, chief executive of the Travel Compensation Fund, which provides consumer protection for Australian travellers, says most Australian travel auction sites are backed by licensed travel agencies.

"The majority are quite legitimate but there might be some that [are not]," he says.

Wells recommends a "buyer beware" approach and says people should check before handing over any money.