TRENDING
FULL ( FEE ) DISCLOSURE
STATES ARE INVESTIGATING HOW MANDATORY CHARGES ARE DISCLOSED IN RESERVATION PROCESS .
Contributed BY JUDITH CROWN
Scrutiny of resort fees is heating up as U . S . state attorneys general press an industrywide investigation into how the mandatory charges are disclosed during the reservation process .
In an era when online booking sites with price comparisons compel hotels to advertise low room rates , the fees – for such amenities as gym and pool use , beach towels and WiFi – offer a way to recoup revenue , says Lauren Wolfe , counsel for Travelers United , a consumer advocacy group . But they ’ ve been showing up on hotel bills since the late 1990s , taking off around 2008 when behemoth Las Vegas resorts introduced them , Wolfe says .
Now , District of Columbia attorney general Karl Racine is leading the offensive with counterparts in 46 states . In recent months , Racine battled Marriott International over the amount of data the hotel giant is obligated to produce as part of the investigation . That dispute surfaced in public filings as Racine sought to enforce a subpoena served on the hotel giant . Other chains are being investigated as well , a spokesman for Racine says .
Hotel operators are watching to see whether the AGs reach settlements with one or more chains or bring enforcement actions . Other complaints filed by consumers are pending : A consumer
suit against Wyndham Worldwide in U . S . District Court in Pennsylvania seeks class-action status . “ We ’ re waiting for the other shoe to drop ,” says Los Angeles hospitality lawyer Jim Butler , a partner at Jeffer Mangels Butler & Mitchell .
DISCLOSURE At issue is when in the reservation process , and how conspicuously , hotels should disclose the fees . Consumer advocates say if they aren ’ t disclosed as part of the room price , they should be displayed prominently nearby . Some hotels reveal the fees in fine print or on hard-to-find locations on the website . Many disclose them only as the reservation is being completed . That still gives the consumer opportunity to walk away , but as a practical matter , most don ’ t . “ They ’ ve made a booking decision and the hotels know that ,” says Christopher Elliott , a consumer advocate specializing in travel .
The practice of charging mandatory resort fees has grown during the past five to 10 years , according to Randy Greencorn , founder of resortfeechecker . com . It is expanding to metropolitan areas such as San Francisco and New York , where the add-ons are termed a “ facility charge ” or “ amenities fee ,” he says .
The number of U . S . hotels tracked by resortfeechecker that charge the fee
— mostly 4- and 5-star properties — rose 26 % to 1,026 in the 12 months ended July 2017 . The average fee rose 12 % to US $ 21.05 in the same period . Some luxury resorts charge fees of US $ 40 and US $ 50 a night and two properties charged US $ 100 or more as of August , according to the site . Greencorn estimates that 7.1 % of 54,000 U . S . lodging facilities charge fees . Resort fees must be included in base rates in the European Union and Australia , Wolfe says , and they are becoming more common at Caribbean , Canadian and Mexican hotels .
The American Hotel & Lodging Association ( AHLA ) also estimates that 7 % of hotels charge a fee but says the practice has declined over the past decade . “ Resort fees are fully disclosed up front and clear to the consumer at the time of booking and remain transparent ,” AHLA says .
According to a January 2017 report
16 hotelsmag . com January / February 2018