How to Spot a Hotel Booking Scam

Author: Holly Johnson / Source: Wise Bread

While families wishing to see the world once relied on travel agents for their glossy brochures and recommendations, the internet has ushered in a new wave of travel planning independence. These days, more and more people are using the web to research destinations, plan itineraries, and book their own hotels.

The freedom to research independently is a good thing, but there’s also a problem: The American Hotel and Lodging Association (AHLA) reports that 55 million hotel booking scams are perpetrated against unsuspecting consumers each year.

The organization acknowledges that the internet has offered great conveniences in the travel space, but says hotel booking scams continue popping up all the time. Rogue third-party online booking sites imitate legitimate hotel websites, taking advantage of the huge volume of online travel searches. (See also: This Airbnb Scam Will Ruin Your Vacation — and Your Budget)

The anatomy of a hotel booking scam

According to the AHLA, many hotel booking scams are set up so consumers don’t even know they’ve been tricked. Most of the time, it starts with a hotel scam website being created and promoted so that it shows up in internet search engines right alongside legitimate hotel websites and third-party booking sites.

“These rogue sites trick consumers by mirroring the look and feel of the actual hotel website — using copyrighted images, trademarked logos, and many times, even similar URLs — to take consumers for a ride,” writes the AHLA in a report about online booking scams.

From there, the fraud committed can take on several different forms. The fraudulent website may steal the victim’s money completely without making a hotel reservation on their behalf. Or it might charge the consumer an inflated rate that includes a giant commission the consumer shouldn’t have to pay.

At the very least, you may miss out on hotel loyalty points or perks you thought you were going to receive if you believed you were making a reservation directly with a hotel.

How to avoid hotel booking scams

The AHLA has partnered with the Better Business Bureau (BBB) to raise awareness about hotel booking scams with the goal of protecting consumers. According to Beverly Baskin, CEO of the Council of Better Business Bureaus, certain types of consumers are especially at risk for these scams, including travelers ages 55 and up and members of the military. Baskin says that travel and vacation scams cost the average victim around $847.

If you’re eager to ensure your travel plans aren’t ruined by thieves, consider these tips from the BBB and the AHLA: