AS the number of fraud cases increases, Malaysians have been warned to exercise caution when buying holiday packages online.

The Malaysian Association of Hotels said hoteliers and tourism operators must warn consumers to think twice before buying any package which looks too good to be true.

MAH chief executive officer Yap Lip Seng told The Malaysian Insight that as demand for e-commerce platforms grows, online fraud is becoming more rampant, and not sparing the tourism and the hotel industry.

He reminds social-media users to review the credentials of the shopping platform, including its background before making online transactions, and refer to user reviews or contact the vendors directly.

“Currently, most hotels have direct sales promotion. Consumers can go to the hotel’s website to book accommodation. This is safer than booking on ‘unfamiliar’ websites.”

Yap was commenting on a bogus website that sold 8,000 packages at a popular island resort within two hours, raking in RM3.5 million.

The resort later confirmed it never offered such a deal, adding that the online packages were unauthorised.

Yap said the hotel industry was one of the first to start e-commerce and developed various improvements and enhancements to reduce the risk of customers being cheated.

“We have advised hotel operators to monitor, review and update their sales channels,” Yap said.

Check credentials

The tourism industry is feeling the brunt of the pandemic.

“The tourism industry was unable to attract foreign tourists and could only promote domestic tourism. Therefore, many popular tourism packages were sold with big discounts to attract local tourists.”

Malaysian Inbound Tourism Association (Mita) president Uzaidi Udanis said only agencies registered with the Tourism Ministry can promote travel packages.

“E-commerce has indeed made it easier for tourism operators to promote their packages,” Uzaidi said.

“However, only registered travel agencies which are regulated by the Tourism Industry (Travel and Travel Agency Business) Act 1992 can promote packages.”

Uzaidi said they have seen many people using live webcasts to promote packages and hotel rooms.

“Consumers need to be more vigilant before making transactions. They must first check whether the travel agency is registered with the Ministry of Tourism, whether the remittance bank account is a company account, and verify all this before buying packages.”

The ministry’s website lists all registered travel agencies and intermediaries.

“Unless the travel agency has a bad reputation, it might re-register as another new company.

“Consumers should check for online live broadcast of travel packages and hotel rooms to see whether the remittance bank account is under an individual or a company.

“Travel agencies generally use a corporate account. If it is a personal account, don’t be fooled, or you can call the hotel to check on discounts.”

Many consumers also post their experience on the internet to warn others.

“Consumers can check their reviews before making a transaction,” Uzaidi said.

Mita members who want to promote travel packages must also use its label.

Consumers should also check the validity period for their packages as with the pandemic it can change due to travel restrictions.

“For example, Pulau Redang is closed during the monsoon season. If consumers buy packages online, they should pay attention to the availability.

“Because from October to March the island is closed. So, even if they buy the travel package, they will not be able to go there for five months.”

Uzaidi said they have also received complaints from consumers who after buying hotel accommodation packages from travel agencies find that the hotel is offering lower prices.

Some consumers have sued travel agencies for deception, he said, adding that there are no statistics on how many complaints have been lodged. – December 6, 2020.