As notices from a major tour company go, this one was not nearly as bad as it could have been. Creative Leisure, a high-end tour company that has been specializing in resort and villa bookings, has decided to downsize.
The company issued this statement yesterday:
We have decided to wind down our luxury resort business to focus on our luxury villa businesses.
If you have an existing Creative Leisure booking it will continue to be operated and serviced. We have a dedicated team to provide support for existing Creative Leisure bookings.
Creative Leisure is hardly a fly-by-night company. It has been in business over 40 years, and previous to this announcement, had expanded from arranging deluxe Hawaii vacations to booking vacations to the Caribbean, Costa Rica and Tahiti.
The fact that Creative Leisure is honoring and servicing all bookings is a good sign, and a welcome departure from other companies that have just shut their doors and left customers to fend for themselves. By focusing on villas, it remains in a niche market with less competition.
But its decision is a sobering reminder that it’s not just airlines who are going through tough economic times. Other tour operators may also retrench, and it’s possible some may go out of business.
What’s a traveler to do?
Well, while there are no guarantees, it’s probably a good time to stick with a company with a long track record or one that is part of a larger corporation. (Classic Vacations, for example, is owned by Expedia.) And all companies that are members of the United States Tour Operators Association (USTOA) have had to post $1 million security bonds.
Admittedly, with the largest tour operators, $1 million might not be enough to cover all losses, although USTOA operators are urged to help clients of other members.
Paying with a credit card also helps, as services not delivered can be disputed with the credit card companies. In addition, travel agents may — but not always — have background information on various suppliers that is not available to the general public.
Lastly, there is travel insurance, although these days not even insurers seem to be insulated from the economy. Not all policies cover supplier or airline default, so read any potential policy carefully.
The silver lining to all this gloom and doom: there are some incredibly good vacation deals out there these days. But as with most things, it is good to be extra careful with your investment.
