No one in the travel industry denies these are tough times, and many observers have openly wondered how many U.S. airlines will survive. But tour operators are also vulnerable, and on January 21, the industry lost a good one. TourTech International, a mostly upscale operator of escorted tours, plus group and individual travel to Central and South America, abruptly stopped answering its phones and closed down.
TourTech had been in business since 1989, and was a member of high-end consortiums such as Ensemble and Signature Travel Network. (Although Signature had recently notified its members that it had not renewed TourTech’s 2009 preferred supplier contract.)
Is this an isolated incident, or the first of many?
Most responsible travel agents try to work whenever possible with established companies that they believe to be reliable. And I will often refuse to book an unknown company, suggesting that clients can if they want, book direct, if they want to risk it. But when the established companies start closing doors, it’s a whole different story.
What’s a consumer to do? The number one rule is to pay by credit card, where at least you can dispute the charge if the company goes out of business. In addition, some travel insurance covers supplier default, but check the policy carefully for loopholes. (Back in the days when airlines seemed to be entering bankruptcy on a weekly basis, some insurance companies would not cover airlines they thought to be at risk.)
Asking your travel agent doesn’t hurt. Not every weak operator is the subject of rumors, but several are. Many agents stopped booking Suntrips and ATA before they closed their doors.
Also while the demise of a “big-name” supplier reminds us that no tour operator is safe, at least in this case other operators are stepping in to help. While consortium members are not obligated to work with the clients of other failed members, it’s a lot more likely they will step in than for a smaller independent, particularly one that doesn’t work with travel agencies.
And finally, use common sense. Particularly in tough economic times, if a company you’ve never heard of is offering a deal that sounds too good to be true, it probably is.
Janice Hough is a California-based travel agent a travel blogger and a part-time comedy writer. A frequent flier herself, she’s been doing battle with airlines, hotels, and other travel companies for over three decades. Besides writing for Travelers United, Janice has a humor blog at Leftcoastsportsbabe.com (Warning, the political and sports humor therein does not represent the views of anyone but herself.)
