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Travel Scams: You Don't Get Something for Nothing Source:U.S. Department of Consumer Affairs Beware of travel companies that misrepresent information about the bookings and transportation costs. For example, a company that offers an unbelievably low airfare may make up the loss in another way such as overpriced hotel accomodations. In most cases, one should assume that “If it sounds too good to be true, it probably is.” The following tips from the U.S. Department of Consumer Affairs can save you from a disappointing vacation. Don't be taken by solicitations by postcard, letter, or phone claiming you've won a free trip or can get discounts on hotels and airfares. These offers usually don't disclose the hidden fees involved, for example, deposits, surcharges, excessive handling fees or taxes. Some travel scams require you to purchase a product to get a trip that is “free” or “two-for-one.” You'll end up paying for the “free trip” or more for the product than the trip is worth, and the two-for-one deal might be more expensive than if you had arranged a trip yourself by watching airfare deals. Be wary of travel offers which ask you to redeem vouchers or certificates from out-of-state companies. Their offers are usually valid only for a limited time and on a space-available basis. The hotels are often budget rooms and very uncomfortable. The company charges you for the trip in advance, but will the company still be in business when you're ready to take the trip? Check the reputation of any travel service you use, especially travel clubs offering discounts on their services in exchange for an annual fee. Contact your state or local consumer protection agency or the Better Business Bureau. Request copies of a travel club's or agent's brochures and contracts before purchasing your ticket. Don't rely on oral promises. Find out about cancellation policies and never sign contracts that have blank or incomplete spaces. Never give out your credit card number to a club or company with which you're unfamiliar or which requires you to call 900 numbers for information. Don't feel pressured by requests for an immediate decision or a statement that the offer is only good “if you act now.” Don't deal with companies that request payment in advance or that don't have escrow accounts where your deposit is held. Research cut-rate offers, especially when dealing with travel consolidators who might not be able to provide your tickets until close to your departure date. You can protect yourself by using a credit card to purchase travel services. If you don't get what you paid for, contact the credit card issuer and you might be able to get the charges reversed. Be aware that you have 60 days to dispute a charge.
Got a Yen...To Learn About Foreign Exchange? Source: FDIC Consumer News,Spring 1995. The value of the U.S. dollar has an impact on all our lives, not just those of us who travel abroad. So what does it mean when the dollar is “up” against the French franc or “down” against the Japanese yen? Is it better to have a “strong” or a “weak” dollar? Who determines the value of the dollar versus foreign currencies? Economic conditions in the U.S. play a big role in why the dollar fluctuates in value. An example: Large trade deficits mean dollars are flooding the world markets, causing a greater supply than demand, which creates a weak dollar. And if foreign investors think U.S. interest rates are heading down, they'll put more money outside the U.S. looking for higher rates, which lessens the demand for dollars and weakens the dollar's value. When the dollar is weak—or down—against a foreign currency, that means it takes more dollars to buy the same amount of foreign money, and items you buy while abroad will cost you more. When the dollar is strong—or up—against a foreign currency, that means it takes fewer dollars to buy the same amount of foreign money, and items you buy while abroad will cost you less (or as many like to look at it, you can buy more stuff). Let's say you're planning a trip to England and you're told a cab ride from the airport to your hotel in London costs 25 British pounds. If it takes $1.50 to buy one British pound, that cab fare will cost the equivalent of about $37.50 ($1.50 × 25). If at the time of your trip the dollar has weakened, however, it might take $1.75 to equal one British pound. That same 25 pound cab ride would end up costing you about $6.25 more ($1.75 × 25 = $43.75). Likewise, if the dollar gets stronger, that cab ride might cost you only $1.25 per British pound, or $31.25 ($1.25 × 25 = $31.25). This same principle applies to anything else you might buy—souvenirs, food and so on—while you're away. Many people planning a trip try to predict what a foreign currency will be worth in the future. If they think the dollar will be strong they may hold off converting their dollars until right before they depart. Or if they think the dollar will be weaker, they may convert their dollars several weeks before they depart. It's a tough decision to make. It's like trying to predict what a stock will be worth on a certain day. As a general rule, you shouldn't exchange all your money at one time because you could end up guessing wrong or converting too much money and losing again when you convert back to dollars or to another currency. Just because you got a good price exchanging dollars for pounds doesn't mean you'll get a good price exchanging pounds for French francs.
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