Deposit Dilemmas: The Risk of Paying in Advance for International Trips
We all want to be able to jet off on holiday, get away from it all, and then lie back in the sunshine without a care in the world. It’s what many of us save all year for, and it’s the time of year when we cut loose and make memories with the people we love. With so much to look forward to, the last thing any of us wants to think about is the prospect of something going wrong, and yet it happens to thousands of travellers every year.
To help your holiday go off without a hitch, let’s take a look at the risks of paying in advance and what you can do to keep yourself safe.
Excessive cancellation fees
Many package holiday companies need to sell a large volume of trips to make any money, and that means they look to make money wherever they can. If you have your attention caught by a low-deposit offer that gives you financial flexibility throughout the year, we don’t blame you. The only issue here is that many such offers will have such high cancellation fees that they can feel like you’re taking a gamble. There are even cases where families have to pay more due to a top-up payment being charged even though they cancelled early.
Economic uncertainty
No company will be around forever, and the world economy is particularly volatile and uncertain at the moment. If you safely and securely hand over a deposit, you will never know with 100% certainty that the company will still be operating when you come to fly out 10 months later. If they go out of business and fold in the meantime, the chances are that your deposit will be lost and distributed to other creditors long before you have a chance to do anything about it.
Highly convincing scams
The moment you start to search online for a holiday, there will be groups of cyber criminals and scammers who are looking to take advantage of your good nature. If you are in the process of finalising a trip and receive an unsolicited request for payment from an email address you don’t recognise, this is an immediate red flag. Scammers will pose as the companies you are booking with, often by changing just a single digit in their address and copying everything else about the way they present themselves.
How to stay safe
We want you to be able to enjoy your time away without worrying excessively, which is why we’re going to talk you through some simple steps you can take to stay safe:
- Travel insurance: Giving yourself as much protection as possible against unforeseen circumstances is a smart move
- Secure payment services: A specialist money transfer service will provide full traceability and a series of checks and balances to keep you safe online
- The ATOL scheme: Financial protection when your holiday booking includes flights — particularly suited to budget package holidays
There is always a temptation to believe something that sounds perfect because you want to go on holiday without any stress, but it’s important to step back and think. The three points above will help you do this, as will the key questions in the following section.
Questions to ask yourself
Making sure you don’t get caught up in the excitement of booking the trip of a lifetime sounds easier said than done, but it’s something you can do simply by slowing down and taking a moment. Here are the key questions to ask yourself that will make this happen:
- Did I approach this seller? If not, they are likely running a scam designed to part you from your money.
- Have I double-checked the payment details? If you haven’t, you’re giving potential scammers a foothold. Tools like this What Is A SWIFT Code guide will show you how SWIFT codes are used by banks to communicate with one another safely and securely. A quick read will help keep you safe.
- Is it too good to be true? If you tell a friend about the deal and they mention how good it sounds with an air of disbelief, this is a clear warning sign.
- Am I being pressured? If pressure is being applied, this is a sign that something is not right.
- Have I read the T&Cs? If you don’t know about the cancellation process, you’re putting yourself at unnecessary risk.
Now that you know the risks and how to mitigate them, it’s over to you to start searching for the trip of a lifetime. Once you have narrowed down your shortlist, take a minute to work through the safety steps and key questions above, and you will be able to keep yourself safe the smart way.
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