TRENDING
FULL
DISCLOSURE
RESORT FEES , AND THEIR ILK , ARE UNDER SCRUTINY EVEN AS THEY PROLIFERATE .
Add-on fees have been a fact of life for most resort guests in the United States . But now that the practice has spread to hotels in major cities , regulators are taking notice .
In July , District of Columbia attorney general Karl Racine filed a lawsuit against Marriott International in superior court following a three-year investigation of resort fees by attorneys general across the country . The suit argues that Marriott cannot legally advertise a room rate that does not disclose all mandatory fees , regardless of whether those fees appear later in the reservation process . The attorney general contends that the practice runs afoul of the city ’ s consumerprotection law , that Marriott hotels have misled consumers , and that the company should pay restitution to D . C . consumers and heavy civil penalties .
Shortly after that , Nebraska Attorney General Doug Peterson filed a similar lawsuit against Hilton , accusing the company of deceptive pricing , “ hiding the true price of hotel rooms ” and engaging in the “ unlawful trade practice of drip pricing ” by failing to reveal daily mandatory charges until later in the booking process . Peterson wants Hilton to advertise more transparently , pay restitution to affected Nebraska consumers and pay civil penalties for violating the state ’ s consumer-protection laws .
“ The legal risks associated with resort fee disclosure practices have just increased significantly ,” observes Daniel Prywes , a partner with the Washington , D . C ., law firm of Morris Manning & Martin LLP . “ At the minimum , hotels should ensure that mandatory resort fees are disclosed prominently and clearly at some point before a reservation is finalized .”
Bjorn Hanson , a New York-based researcher and lodging consultant who has tracked resort fees since they first became popular , says most resorts are already doing a good job of making sure travelers know about fees before they book a room .
“ Most consumers are aware there may be a resort fee , so they are attentive to them , and resorts have gotten used to what level of disclosure is enough ,” he notes ; such fees , however , are “ much less common ” outside the U . S ., he says .
Sean Hennessey , CEO of Lodging Advisors , New York City , says he thinks “ hotels have gotten a lot clearer about fees at the time of booking , and trying to manage customers ’ expectations . Having guests surprised or annoyed by those fees is not a good long-term strategy .”
OPTING OUT As more urban hotels adopt the practice of adding a daily fee — typically calling it an urban fee or destination fee — some consumers may feel blindsided . In 2018 , Hanson reckons , urban hotel fee revenue grew some 400 %, and the practice continues to escalate .
Meanwhile , the two lawsuits have ignited a storm of snarky consumer media coverage that depicts hotels as greedy and consumers as unsuspecting victims . Marriott CEO Arne Sorenson , in a video posted on LinkedIn , acknowledged that consumers don ’ t love resort fees , but that they are not going away . In reality , Hanson points out , the fees help operators survive in a climate where a 2 % growth in room rates is not keeping pace with three of the biggest costs — labor , property insurance and real estate
10 hotelsmag . com October 2019