• Creating a community of trustworthy businesses
• Setting standards for marketplace trust
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• Celebrating marketplace role models, and
• Denouncing substandard marketplace behavior
Today I ask you to pay particular attention to that last bullet point. It is through the support of BBB Accredited Businesses that we are able to carry out this critical piece of work in our community. And it’s not just critical to consumers; it’s critical to any of you who have a stake in Tucson’s business community.
In many instances, unscrupulous businesses focus on making money in the short-term but aren’t invested in satisfying their customers. The residual effect is that their activity creates a climate of suspicion and mistrust amongst consumers. Those of you who happen to have the misfortune of operating a legitimate business in the same industry – or any industry for that matter - will suffer to some degree as a result.
We need your help to spread the word about complaints we have been receiving regarding the marketing practices and services of Southwest Travel Inc. The company is owned by Jack R. Keefe, according to corporation documents. In December 2009 Mr. Keefe’s company employed the services of an outside marketing company to mail letters throughout Southern Arizona. I just received the fourth variation at my household about two weeks ago. You or someone you know has likely received one too. They read something like this:
“I’m pleased to inform you that you have qualified for an award of 2 roundtrip airline tickets. Congratulations. These tickets are valid for travel anywhere in the continental U.S. The retail value of this award is up to $1,400….”
In other variations of the letter, consumers are offered free Wal-Mart rebate certificates, dinner cards, “food certificates,” retail gift cards or other enticements to get them in the door. The company’s most recent marketing tactic is a robocall campaign. Local consumers call the toll-free number in the letter or in the phone message and - according to those who attend - the following chain of events ensues:
They are invited to a 90-minute presentation at Southwest Travel offices, 4811 E Grant Road. They are told they will receive their airline ticket vouchers and other various prizes just for their time. Those who attend tell BBB the company is a private, discount travel club that promises steep discounts on an array of travel, including cruises, packages, timeshares, special events and more for a fee. Consumers say the up front cost of the program is $8,995, plus an additional one-time $399 “documentation fee” and an annual membership fee of $199. Other packages for lesser prices are offered.
Since December the company has generated 1,661 inquiries and 16 complaints at this BBB. Consumers say they are often unable to redeem the airline tickets they were promised for attending the presentation because the process is so convoluted. Those who were promised Wal-Mart rebate certificates say they have to spend $1,500 over the course of 15 months in order to receive the promised $300 in rebates. The company responds to these complaints by offering consumers alternative gifts, such as $100 American Express gift cards.
Now we are hearing from consumers who paid thousands for the travel club membership, only to find the promised discounts aren’t living up to the sales pitch. Consumers say that after signing the contract there is a two-week delay before they are able to log on to the company’s membership website to access their discounted packages, yet the company’s refund policy requires cancellation within three days.
We’ve issued three alerts since the company first came on our radar in December. We posted the story in our consumer blog and have garnered hundreds of consumer comments; still, our residents continue to show up to the presentations in droves without arming themselves with information about this kind of marketing practice and the tough questions they should ask.
As business professionals and consumers, help us spread the word. Share this information with your families and friends; ask if they’ve received the letter or a phone call; refer them to our BBB report on the company at www.tucson.bbb.org.
In doing so you’ll help us carry out our mission to create and sustain a business community in Tucson that our residents can feel safe in. Remember, this type of practice impacts anyone who has a stake in Tucson’s business community.
Contact Kim States, CEO of the Better Business Bureau of Southern Arizona, at kstates@tucson.bbb.org or (520) 888-6161. The BBB website is www.tucson.bbb.org. The BBB of Southern Arizona serves Pima, Chochise, Santa Cruz, Graham, and Greenlee counties in Arizona and all of Sonora, Mexico. Offices are at 434 S. Williams Blvd., Suite 102.Jack Keefe says he is aware the Better Business Bureau has “got an issue” with the way his firm Southwest Travel sells its travel club memberships but says there hasn’t been a single complaint from a customer who actually bought into the program.
Southwest Travel responds
He likened his travel club sales pitches to a time-share presentation.
Keefe says he contracts with several marketing firms in order to reach thousands of people each week to come to sales presentations. He said gift offers are part of the lure.
He also acknowledges it’s possible that one of the marketing firms might wrongly call someone who has asked not to be contacted and if he finds such instances he’ll correct them.
“But I need information,” Keefe said. “Who called, when did they call and what did they say? The more information I have then I can track down what company made the call because it wasn’t us.”
He said he has stopped using marketing firms when he has found they are the source of complaints about violating “do not call” procedures.
Southwest Travel has sold about 800 travel club memberships to a wide variety of members since opening in October, Keefe said.
All prospective members are given a disclosure statement upfront that outlines costs and restrictions.
He also notes he is in good standing with credit card firms.
Keefe says the BBB’s campaign is something like a “witch hunt” probably stemming from the fact that his company may be the only one in Tucson that sells travel club memberships as he does.
“I don’t know if it’s someone over there trying to get retribution or what,” Keefe said. “But it’s amazing how they can show you pictures we’ve used and have exact quotes from our presentations.”
He emphasized the point that BBB’s complaints are all focused on how Southwest Travel sells its products and there have been no complaints from actual customers.
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