Travelers booking hotel stays are being duped by $5.2 billion a year by fraudsters and misleading third party websites, according to the American Hotel & Lodging Association.
A new survey claims 23% of consumers have been misled by third-party companies either online or via the phone which is equivalent to 28.5 million hotel stays.
AHLA is urging caution with the ‘Search Smarter’ awareness campaign which includes a video and educational day on Capitol Hill to highlight the misleading marketing tactics of resellers and outright fraudulent practices.
"It’s easy and convenient to make travel arrangements online. Unfortunately, as online bookings have surged, so too have scams and deceptive behaviors," said Katherine Lugar, AHLA president and CEO.
"That’s why we encourage consumers to look before you book, slow down, and search smarter. Taking a few extra seconds to book directly with a hotel or a trusted travel agent can save time and money in the long run."
Still, the association urges travelers to book directly through the relevant hotel website or mobile app, which may well be smarter, but is significantly more time consuming for the average comparison shopping consumer.
This ‘often results in the best deal and more travel perks and benefits’ AHLA says.
"Nearly one in four consumers report being misled by third-party resellers—and the constant flow of new companies entering the online travel market—suggests we need to do more to protect consumers. That’s why we are asking Congress to pass the Stop Online Booking Scams Act, a bill that would protect consumers by increasing the transparency and security of the online booking process," Lugar said.
