When bad tours happen to good people

On Sept. 24, when Far & Wide Travel, the Miami-based company that operates under some 21 affiliated travel brands, suddenly sought bankruptcy protection, thousands of travelers had their vacation plans go up in smoke.

Those who made advance payments to the company for future trips were sent scrambling to make new plans, wondering if any of their deposit would ever be returned. However, most of the 3,000 travelers who were actually on Far & Wide trips that day were pretty much left to fend for themselves.

Keidan, of Forest Hills and wife of former Post-Gazette writer Bruce Keidan, and an old friend were five days into a Far & Wide "Best of the Alps" trip they had booked in late August. Each woman had paid $2,224 for an 11-night bus tour with stays in Switzerland, Austria and Germany. That price did not include round-trip air fare, but it did take advantage of a $100 discount Far & Wide offered for paying in cash. Although that might have been a clue to the company's financial distress, neither of the two women opted to sign up for the offered travel insurance.

There were 36 other passengers on the tour, all but two of whom were from the United States, and the trip had gone very well to that point. The accommodations, bus, weather and tour guide were very good, and members of the group were getting along fine. They were at the end of their three-day stay in the Swiss town of Villard-sur-Ollon when they got the bad news. Michael, the group's guide, asked everyone to stay around after dinner because he had an announcement. He had just received a fax advising him that the company had filed for bankruptcy and was suspending operations immediately, effectively leaving that group and all the others in progress to fend for themselves.

Talk about a rude shock!

The guide outlined the options. They could ungroup, leaving participants to fend for themselves, whether they wanted to continue on their own or end the trip and try to catch an earlier flight home. A third possibility was to stay together as a group and complete the scheduled itinerary, paying out of pocket for the remaining hotels and meals. Both Michael and Kurt, the bus driver, volunteered to see the group through the last four days in Innsbruck and Munich, where they were scheduled to catch flights home. Also, the manager of the hotel in Villard wanted them to pay for the three nights they had spent there. All told, the additional cost would come to $500 per person. The group decided to make a decision the next morning.

After making several long phone calls to Delta Airlines, Keidan and her friend discovered that it would cost each of them more than $1,000 to change their flight reservations to return to Pittsburgh earlier than scheduled. Considering that information, paying the additional money to complete their trip now seemed a far better choice. The next morning, all 38 tour participants voted to continue.

Keidan reports that the group had a "revolutionary" moment that morning when they removed the Far & Wide placard from the side of the bus, declaring that it was now a Michael & Kurt tour. The trip proceeded according to the rest of itinerary, which proved to be enjoyable, especially considering their augmented sense of camaraderie.

As I said, they were the lucky ones. They were part of an amicable group and had an extraordinarily responsible tour guide and bus driver. Practically speaking, when things go wrong on a package trip, the best course is almost always to work out a satisfactory agreement on the spot. Keidan heard reports of other Far & Wide groups being plunged into costly chaos.

Similar to the recent bankruptcies of other tour operators, cruise companies and airlines in recent years, corporate insolvency came unannounced. Like others, Far & Wide has credited the ripple effects of 9/11 as the cause of its financial problems.

As a member of both the U.S. Tour Operators Association and National Tour Association, the company had operated for many years in good standing. It posted the USTOA's requisite million-dollar bond against such dire circumstances. Keidan and others who suffered financial loss as result of the bankruptcy are entitled to file for a pro-rata share of those bonds, although with so many people affected, it's not likely anyone will get more than pennies on the dollar.

In addition, many of the other USTOA member companies have offered to accommodate Far & Wide refugees, either by honoring deposits paid or by providing some other form of discount or assistance. Some are trying to duplicate original itineraries for passengers. Others are evaluating travelers' arrangements on a case-by-case basis. Traveler claims against Far & Wide or its affiliates must be filed by Dec. 31. Details, applications and additional information are available on the USTOA Web site www.ustoa.com.

Those who paid for Far & Wide trips or made deposits for future travel with a credit card are advised to contact their card company to apply for a refund or charge back. Those claims must be filed within 60 days from when the charge was posted on their bill.

The incident underscores the importance of being a vigilant and careful travel consumer. Unlike many other purchases, when you buy airline tickets, make cruise reservations or sign up for a tour package, you are generally required to pay the entire amount weeks or even months in advance. How can you protect that investment?

First, before putting down a single penny for a trip, know what you're buying and from whom. Do some digging and don't be seduced by a glossy brochure. Find out if there have been complaints against the tour operator.

When plunking down thousands of dollars for a trip, it is a good idea to consider buying travel insurance to cover unforeseen events. Many cruise lines and tour operators offer relatively inexpensive coverage, but that can be something of a false assurance. When travel operators go belly-up, their insurance coverage can also evaporate.

As a rule, it is generally wiser to compare coverage and to buy insurance from one of the several independent travel underwriters. You can get that information from your travel agent or check with one of the Web sites such as www.insuremytrip.com or www.quotetravelinsurance.com.

Several insurance providers also offer clues to companies that are in trouble by putting them on a watch list or by refusing to write policies for their trips. Travel Guard, one of the leading insurance providers, maintains an alert list on its Web site, www.travelguard.com.

It is interesting to note that companies now on that list include both United Airlines and Air Canada.

When buying travel, a little foresight can go a long way.