US Legislators Introduce Bipartisan Bill to Scrap ‘Hidden’ Resort Fees

A bipartisan federal bill tabled at the US Senate is seeking to strike resort fees by proposing the introduction of regulations that will require hotels to be more transparent about hidden costs. For years, travelers booking hotels and resorts across the nation have been tricked into reserving hotel stays under the guise of good deals only to be hit with notorious ‘resort fees’ that were not disclosed from the outset.

If adopted, the new Hotel Fees Transparency Act would call for all facility advertisers to display the actual cost to consumers. The Act is to be implemented by the Federal Trade Commission, where any violations would be addressed. This is something that a lot of consumers and the Biden administration have been calling for, and it appears that their sentiments have finally been heard. To date, disclosing the full cost of a facility has been voluntary, catching guests unawares when the hidden fees crop up at checkout.

Years of ‘Misleading’ Advertising to Coming to an End?

The bipartisan Bill was introduced to the Senate by Sen. Amy Klobuchar (D-Minn) and Sen. Jerry Moran (R-Kan). They pointed out that the true cost of hotel overnight stays has often been hidden from consumers until the last minute. Sen. Klobuchar said in part:

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“Too often, Americans making reservations online are being met with hidden fees that make it difficult to compare prices and understand the true cost of an overnight stay…This bipartisan legislation would help improve transparency so that travelers can make informed decisions.”

This Bill comes months after President Joe Biden addressed ‘junk’ fees State of the Union speech, where he discussed the ongoing ‘competition agenda.’ At the time, Biden proposed that Congress come up with the Junk Fee Protection Act, which would come within the purview of the Consumer Financial Protection Bureau.

The Bill would address the surprise resort and destination fees, airline seat selection fees, early termination fees for home utilities, and hidden online ticketing fees on metasearch websites. President Biden noted in June that:

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“Junk fees may not matter to the very wealthy, but they matter to most other folks…They add up to hundreds of dollars a month.”

He commended state and non-state actors already addressing and tackling junk fees, which he claimed were unfair to consumers in low-income households like the homes he grew up in.

Resort Fees Defended by AHLA and AGA

As with any other bill, some do not agree with the proposal, in this case, the American Hotel and Lodging Association (AHLA) and the American Gaming Association (AGA). AHLA has reported that it conducted a poll that found hidden hotel fees are ‘rare.’ Moreover, the AHLA pointed out that most hotel visitors (80%) don’t have a problem paying resort fees if they consider the amenities worthwhile.

Explaining that resort fees charged to hotel stays go directly to hotel expenses like wages and benefits for employees, AHLA President and CEO Chip Rogers stated,

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“AHLA’s most recent data shows only 6% of hotels nationwide charge a mandatory resort/destination/amenity fee, at an average of $26 per night.”

The American Gaming Association has also commented on the matter, expressing concern that switching to all-inclusive pricing would be misleading for consumers who could make ‘assumptions about what services and amenities would be available.’ The AGA Vice President of government relations, Alex Costello, remarked:

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“We continue to maintain that resort fees provide value…We try and make them as easy for the consumer to understand as possible. We’re following existing FTC guidance. We believe that these should remain and that this is a problem that doesn’t need to be solved.”

Resort Fees: A Big Income Generator for Hotels

Since being launched in 1997, resort fees have generated billion per year for hotels. This is especially the case for millions who flock to Las Vegas, only to be hit with resort fees ranging from $10 to over $100 per night. Sometimes, the costs can even exceed the room rate, raising insane profits for the hotel.

According to Consumer Reports, hotels brought in about $3 billion in resort fees in 2022 alone. The hotel income on resort fees has been increasing over the years, with 2018 recording $2.9 billion in revenue. Concerns about the exploitative nature of resort fees were brought forth when Washington DC Attorney General Racine sued Marriott in 2019. He alleged that the hotel chain refused to reveal the actual room cost to deceive consumers, consequently harming them financially.

The suit sought to force Marriott to compensate tens of thousands of consumers whom it claimed had fallen prey to the corporation’s pursuit for profits. AG Racine had said:

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“Marriott reaped hundreds of millions of dollars in profit by deceiving consumers about the true price of its hotel rooms…Bait-and-switch advertising and deceptive pricing practices are illegal. With this lawsuit, we are seeking monetary relief for tens of thousands of District consumers who paid hidden resort fees and to force Marriott to be fully transparent about their prices so consumers can make informed decisions when booking hotel rooms.”

The Hotel Fees Transparency Act is a significant step towards enhancing transparency in the hospitality industry. Seeing as the idea of restricting hidden fees is being echoed across the country, chances are that this Bill or a similar one will be passed in the Senate or Congress sometime soon. With the potential end of ‘hidden’ resort fees on the horizon, travelers can look forward to a more transparent and enjoyable experience when planning their vacations and getaways.