The Israeli Consumer Council has reported a 40 percent increase in the number of complaints received from consumers in outgoing tourism this summer, compared to the same period last year. Most of the complaints received involved indirect sales transactions.
According to the reports from the council, during July and August 2009, 145 complaints were received from consumers who purchased overseas holidays. This represents an increase of 40 percent compared to the same period last year, when the council received 84 complaints.
Most of the complaints (76 percent) related to indirect sales transactions – holidays purchased via the internet or by telephone – the rest were complaints about consumers being mislead, non-disclosure forms containing all of the information required by law, refusal to cancel transactions sold indirectly contrary to consumer protection law and the collection of higher than allowed cancellation fees.
The council also pointed out that from the complaints received during July and August 2009, 43 percent related to the quality of service provided by travel agents and between travel agents: Agents that failed to respond to letters from the consumer, a lack of human response after making a reservation and no information given regarding changes to flight schedules or cancellations.
Also, 30 percent of the complaints related to travel agents refusing to cancel indirect sales transaction according to the legal requirements and charging a cancellation fee larger than the amount permitted by the law or in the contract. 20 percent of the complaints dealt with misleading the consumer in regards to the standard of the hotel, the customer’s cancellation privileges according to the law. The length /scope of organized tours and misleading flight details for non-existent flights.
“Consumer protection law allows for indirect sales transaction to be cancelled within 14 days of being placed and up to 2 business days prior to the service being provided. The field of tourism is high on the list of complaints and in our estimation it is down to a lack of understanding and lack of proficiency in the regulatory structure,” explained a spokesperson for the Consumer Council. It was also reported that the Consumer Council transferred to the Ministry of Industry, Trade and Labor details of complaints against six different travel agents that require resolution.