Is UTOvacation a scam tour operator? This ex-customer says “yes!”

UTOvacation sold Shih (Richard) Liu and his wife a once-in-a-lifetime trip to China and Japan. But Liu, like many other customers of this particular tour operator, now says he’s the victim of a scam. Nearly a year after collecting full payment from the Lius, the company changed the contract and added new fees.

The couple maintains that the tour operator pulled this bait and switch without any notification or follow-up. But worse than that deception was what UTOvacation did next – also without informing the couple.

It wasn’t until Liu and his wife were preparing to pack their bags for the trip that they learned the awful truth. The couple wouldn’t be going to China or Japan after all. The tour operator had canceled their vacation months earlier for “nonpayment” of the final balance.

Liu, who had a paid-in-full invoice in his possession, was sure there was some mistake, but UTOvacation insisted there wasn’t. According to the tour operator, the couple had forfeited the trip and the $1,454 they’d paid for it.  

End of story and business as usual as far as UTOvacation was concerned.

But was it, really? 

Here’s what happened after Liu sent his request for help to the Consumer Rescue team.

An unbelievable deal from an unknown tour operator

The couple’s saga began 15 months before the tour in question. It would be their first major trip abroad since the pandemic and they were excited to start traveling again. 

“I saw this unbelievable deal from UTOvacation for a tour called ‘Imposing Japan and China’ that looked appealing,” Liu told me. “It cost $495 per person for a 10-day trip. I added some extras so the total came to $1,454.”

An unbelievable deal indeed. That bargain-basement price should have tipped Liu off that something wasn’t right. Unfortunately, it didn’t.

Using a Chase credit card to pay the tour operator

Although UTOvacation proposed Liu could pay for his tour to China and Japan with a wire transfer or check, he wisely declined. 

“I paid for the tour in two payments. On the day of booking I paid $894,” he recalled. “Two weeks later, I made the final payment of $560 with the same card.” 

On that day, UTOvacation sent Liu his confirmation along with a paid-in-full invoice. According to the contract, the suggested gratuities were to be paid directly to the ground staff in Japan and China by the guest.

Tour Fare Excludes: Service Charge & Tipping for the local services team that includes the tour guides, drivers, hotel and restaurant staff.

(From the UTOvacation tour contract)

Liu tucked the contract away for safekeeping, and he and his wife happily looked forward to their adventure.

Surprise! UTOvacation changed the contract

Fast forward 14 months. Just a few weeks before the couple was scheduled to fly to China, Lui says he became curious as to why he hadn’t received any travel documents. 

“I realized it was only a few weeks before the trip and UTOvacation hadn’t sent us our final documents,” Lui explained. “So I called the company to see when we should expect that package.”

The answer Lui received was shocking: Never. 

That’s when a representative of the tour operator told him that the company had canceled their trip “due to nonpayment” five months earlier. 

Referencing his paid in full contract, Lui tried to reason with the agent to no avail.

“I suddenly realized I was being scammed,” Lui told me.

That’s when Lui did something he should have done before booking the trip: He googled UTOvacation. 

Have a problem with UTOvacation? So do many other ex-customers

Across the internet on sites like TripAdvisor, the Better Business Bureau and others, UTOVacation receives abysmal reviews. 

In fact, on Trustpilot UTOvacation sports a 1.9 star “poor overall” rating out of 5 with over 1,300 reviews, many entitled “Scam” or some variation. 

So I did a little digging to find out more about this company.

UTOvacation is based out of Ontario, Canada which requires sellers of travel to be registered with the Travel Industry Council of Ontario (TICO). But when I looked up the company on the TICO website it returned “No registered company found.” 

I searched a little more, using the physical address listed in the footer of the UTOvacation website. Then two companies appeared: U to Vacation and New Pioneer Travel. Those companies are registered with TICO, but with these incognito names, it would be difficult for a customer to file a complaint against UTOvacation (since that particular company name isn’t registered). 

The good news is that consumers who believe they’ve been ripped off by this tour operator can file a formal complaint with TICO here using the name of either of the registered companies above.

Liu however, went straight to Consumer Rescue to ask for help. 

Multiple lost credit card chargebacks

When Liu’s request for assistance entitled “How I was Scammed by UTOvacation” landed on my desk, he was extremely frustrated. He had already filed multiple credit card disputes and appeals, but each time, UTOvacation fought the chargeback. And each time he lost.

The tour company claimed that Liu had not paid the “required” prepaid gratuities it had added to his paid-in-full invoice nearly a year after he’d made his final payment. As a result, Liu was in default of the contract and UTOvacation was entitled to cancel his trip and keep his money (according to the company).

Related: What happens if you don’t want to tip on a cruise?

What UTOvacation neglected to tell Chase was that it had changed its terms and conditions nine months after Liu had booked and fully paid for his vacation. He even had a copy of his paid-in-full invoice to prove it. 

It’s also interesting to note that even today, the UTOvacation terms and conditions state that gratuities are always voluntary. So, it’s entirely unclear on what basis the prepaid tips that triggered the cancellation were added to Liu’s invoice.

Related: How did I lose a credit card dispute to a bankrupt company? 

On a second credit card dispute appeal, a strange and illogical thing happened. Chase found in favor of Liu for one of the two payments, but rejected the credit card chargeback for the $894.

That last rejection is what led a nearly defeated Liu to Consumer Rescue and sent me to our always helpful executive contacts at Chase. 

Asking Chase to review this credit card dispute against UTOvacation

Unfortunately for consumers, most credit card disputes hinge on whether or not the merchant responds. If a business provides any evidence that the customer owes the debt, that will typically be the end of the dispute and the money will return to the merchant. 

UTOvacation fought the chargeback and continued to fight the appeals. One dispute was won by Liu and one was lost. But the facts were the same for both. A merchant can’t change the terms and conditions after the “contract” is sealed. He should have won both credit card disputes.

So I asked our Chase executive contacts to have a look.

In Jan. 2024, Shih Liu contacted UTOvacation to ask why he hadn’t received any departure information. That’s when the company told him they had canceled his trip with a 100% penalty for nonpayment of a final balance.  UTO sent him a copy of their updated terms and conditions which gave them permission to cancel his trip because they had added “mandatory gratuities” of about $350 sometime in August 2023 and charged him a $200 cancellation fee too, but never informed him of the change and refused to reinstate his reservations even though he said he would be happy to pay the gratuities. 

Shih then filed a credit card dispute based on fraud against this merchant and Chase approved one but not both of the credit card chargebacks. 

It seems that whoever reviewed the first dispute at Chase accepted the explanation from UTO that they had informed Shih of the outstanding balance. Shih says the email that UTO provided is also fraudulent since he of course would not have allowed his entire trip to be canceled with a full penalty if he had been made aware of the change in policy and added gratuities.  

P.S., I don’t even think it is legal to force customers to pay mandatory gratuities after the original contract is issued. Shih’s original contract specifically says it “Excludes service fees and tipping.” UTO changed the contract without informing their customer and the kept his money and didn’t provide the trip either. Could your team have a look at this, please?

Thank you!    Michelle

The good news

After a bit of investigation by the Chase team, there was good news for Liu. He finally got his money back from UTOvacation and he has some words of wisdom to share about his experience.

Dear Michelle, 

Great news indeed, thank you all so much! My wife and I feel so relieved.

Unethical businesses, such as UTOvacation, are still perpetrating scams so disguised that even credit card companies can’t see the scam, but you all opened their eyes!

WE’RE SO GRATEFUL FOR YOUR MISSION!!!

Sincerely, Richard Shih Liu

You’re very welcome, Richard. This is exactly why Consumer Rescue is here. 😃

What travelers must consider before booking with any tour operator

Of course, everyone loves a good deal. But when it comes to travel, sometimes a really good deal is a red flag that too many consumers overlook. 

Here are a few things to consider before booking your next vacation with any tour operator (even ones you’re familiar with).

Be super suspicious of click-bait deals

One of the biggest warning signs that you may want to avoid a particular tour operator are deals that seem unbelievable. Tour operators are for-profit companies, so do a little math before booking one of those bargain-basement trips. If it seems too good to be true, as in this case, it almost certainly is. 

Here are some scenes from the UTOvacation website on the day I was researching Liu’s complaint. A 14-day trip to China and Yangtze River was slashed down from $4,999 to just $1. 15-days to China and Tokyo could also be had for $1.

Now I’m sure I don’t have to tell you this is nonsense. No tour company is going to sell you any tour abroad for $1. But many of the complaints on the BBB site, cite the tour company’s false advertising practices aimed at luring customers with trips that could never happen at the rates on display.

Google reviews of the tour operator

It is impossible for any established tour operator not to have an online presence in 2025. If you can’t find anything at all about a company you’re considering, that is a significant red flag. You may be unable to find information about a company because it has “rebranded” with a new business name. Rebranding is a trick some companies with bad reviews will do to attempt to hide negative information from future customers. 

Always be wary of a company with no Internet footprint under its current name or a track record of changing names. Keep in mind that a reputable, successful company will rarely rebrand. 

To get a reasonably clear picture of the tour operator you’re considering, you should be able to google the company’s name along with “reviews” or “complaints.” In the case of UTOvacation, the negative scathing customer experiences under its current name span many review sites. 

Always insist on using a credit card to pay

After vetting the tour operator, ensure you can pay with a credit card. If you can’t, you should reconsider. Of course, it isn’t unusual for travel companies to offer discounts to customers who pay with bank transfers or checks. But this is a bad idea for you since these payment methods have no consumer protection. 

The Fair Credit Billing Act protects credit card users. If a merchant doesn’t provide the goods and services you paid for, you can file a credit card dispute. In contrast, if you’ve paid with cash or check, you’ll have no recourse if something goes wrong. 

Periodically sign in to your online account with the tour operator

Thankfully, tour operators adding surprise junk fees to their customers’ bills in order to cancel their trips and keep their money isn’t common. However, there are many important reasons why travelers should periodically sign into their online accounts to check for updates and alterations to their trip. 

Be on the lookout for:

• Flight schedule and aircraft change (which can impact your original seating choices)  
• Entry requirements to international destinations (which may make it necessary for you to apply for a visa or Electronic Travel Authorization)
• Travel advisories, health warnings, and safety issues
• Itinerary changes

The bottom line

In the end, Liu could have avoided this travel fiasco by researching UTOvacation before falling for the too-good-to-be-true deal. This tour operator can’t hide its bad reputation in today’s digital world. Liu did all the background checks on UTOvacation in the wrong order after becoming one more disgruntled ex-customer. He realizes that now and hopes you learn from his mistake. 

Remember, the Internet can be a wonderful resource for travelers (if used properly). So make sure you use it to do your due diligence before you fall into the hands of an unscrupulous tour operator.

BUT… if, despite your best efforts, you get scammed by a company, Consumer Rescue is here to help you. Our consumer advocacy is always fast, friendly, and free of charge. (Michelle Couch-Friedman, Founder of Consumer Rescue)