Pederson Travel Services

Pederson Travel Services, a long-standing travel agency located in Watertown, South Dakota, is now permanently closed. This closure follows a period of severe customer service issues and has culminated in serious legal consequences for its owner. For former patrons and anyone considering travel services, understanding the trajectory of this business offers a critical case study in consumer diligence. The agency's owner, Margaret "Margo" Spears-Pederson, was indicted by a Codington County Grand Jury in the spring of 2025 on one count of grand theft. This indictment alleges that over a two-year period beginning in January 2023, the agency took between $100,000 and $500,000 from 16 different clients without providing the services paid for. This development provides a stark context for the numerous customer complaints that preceded the business's shuttering.

The Collapse: A Pattern of Complaints

The final years of Pederson Travel Services were marked by a consistent and troubling pattern of negative customer experiences. The Better Business Bureau (BBB) gives the company an "F" rating, citing its failure to respond to multiple formal complaints filed against it. These complaints, along with numerous online reviews, paint a picture of a business in crisis. Clients reported paying thousands of dollars for vacation packages, only to find that key components were never booked. A common narrative involved customers paying in full for trips, sometimes well in advance, and then being unable to reach the agent to receive confirmation numbers, flight details, or complete travel itineraries. As travel dates approached, this lack of communication would escalate, causing immense stress and anxiety.

For example, one detailed BBB complaint outlines a family's experience booking a trip to the Dominican Republic in early 2023. They made payments totaling over $4,200 but, just days before their scheduled departure in February 2024, had still not received any confirmation numbers. The client also noted they were overcharged by several hundred dollars compared to the initial quote. When it became clear the trip was not secured, they requested a cancellation and a full refund, which they reportedly never received. Another client reported paying nearly $2,000 for a travel package in 2020 that was canceled due to the pandemic. Despite being issued a credit and having travel insurance, they spent years attempting to rebook, only to be met with unresponsiveness before the credit expired. These accounts are consistent with the most severe online reviews, where customers used phrases like "took our tens of thousands of dollars and ran" and accused the agent of providing nothing but excuses while holding onto their funds.

From Trusted Advisor to Unresponsive Agent

What makes the downfall of Pederson Travel Services particularly striking is the dramatic contrast with its earlier reputation. For many years, the agency, and Margo Pederson specifically, was a highly recommended travel consultant in the Watertown area. Positive reviews from a decade ago are filled with praise for her meticulous planning and deep knowledge, especially concerning complex trips. She was lauded for her ability to craft perfect honeymoon packages and her expertise in international travel planning. Clients from that era described how Margo would listen to their desires and recommend destinations and resorts that perfectly suited their needs, such as finding the ideal all-inclusive resorts in the Riviera Maya.

First-time international travelers felt particularly supported, noting that Margo handled every detail of their booking flights and hotels, which gave them significant peace of mind. She was known for providing clients with everything they needed for every step of their journey, making them feel prepared and cared for. This earlier reputation as a reliable and knowledgeable professional is what makes the subsequent allegations of theft and deception so jarring. The business once specialized in creating dream vacations, but in its final years, it became the source of financial and emotional distress for many would-be travelers.

The Aftermath and Official Action

The culmination of these issues is the grand theft indictment filed by the South Dakota Attorney General's office. The legal action alleges a significant and prolonged violation of trust, directly aligning with the stories shared by numerous clients. With the business now permanently closed and its assets likely entangled in legal proceedings, the path to financial recovery for affected customers is uncertain. The situation serves as a potent reminder of the risks involved when making large-scale purchases for services to be rendered in the future. The South Dakota Attorney General's office advised consumers to "do due diligence when agreeing to pay for services" and to ensure all agreements are documented in writing before payment is made. For those who dealt with Pederson Travel Services, this advice comes too late, but it stands as a crucial lesson for anyone looking to hire a travel agency for their future plans.