Spending Money to Get Nothing: The Battle Against Resort Fees

In the latest battle against resort fees, travelers are coming face to face with the frustrating reality of spending money on amenities they never use. Resort fees, also known as destination fees or urban fees, are additional charges applied by hotels to cover various amenities. These fees are often not disclosed in the initial room rate and can add up to hundreds of dollars a month, making it harder for travelers to budget for their trips. In response to the growing annoyance, there are now two proposals before Congress aiming to ban these fees and increase transparency. This article explores the impact of resort fees, strategies to avoid paying them, and the latest efforts to regulate them.

Defining resort fees

Resort fees are additional charges that hotels impose on guests to cover various amenities and services. These fees, also known as “destination fees” or “urban fees,” are often not included in the initial room price displayed during an online search for accommodations. Instead, they appear when a consumer clicks through to the payment page, resulting in an inflated nightly rate. Resort fees can be mandatory and typically cover things like access to a gym, Wi-Fi, nonmotorized water-sports equipment, and free local phone calls. While some hotels may disclose these fees upfront, many consumers find them to be unexpected and frustrating.

According to a 2017 Federal Trade Commission report, separating resort fees from room rates makes it difficult for consumers to compare prices and complicates their search process. The purpose behind these fees, according to Henry Harteveldt, a travel industry analyst, is for hotels to keep their published base rates lower to compete with other establishments online or through mobile tools. Although they may be beneficial for hotels to remain competitive, resort fees are considered by many travelers to be an annoyance and a lack of transparency in pricing.

The impact of resort fees on travelers

Resort fees have a significant impact on travelers, both financially and experientially. From a financial standpoint, these additional charges can add up and push the total cost of a hotel stay over budget. A 2023 Consumer Reports survey revealed that 37 percent of American adults have experienced hidden fees associated with their hotel stays, with more than half stating that these fees exceeded their planned budget. Resort fees, along with other “junk fees,” as President Biden referred to them in his State of the Union address, make it harder for individuals to manage their expenses and afford various travel-related expenses.

Experientially, resort fees can lead to dissatisfaction among travelers who feel that they are spending money on amenities and services that they either do not use or find underwhelming. Melissa Middlestadt, for example, encountered this issue during her honeymoon trip to Antigua. Despite being charged a $12-a-night resort fee by the Jolly Beach all-inclusive resort, she faced spotty Wi-Fi and limited access to nonmotorized water-sports equipment due to restricted hours at the kayak hut. This kind of experience can leave travelers feeling disappointed and as if they are spending money to get nothing in return.

Proposals to ban resort fees

To address the frustration surrounding resort fees, several proposals have been introduced to ban or regulate these fees. In the spring, Senators Richard Blumenthal and Sheldon Whitehouse introduced the Junk Fee Prevention Act, which aims to target a range of fees, including resort fees. This proposal seeks to put an end to the practice of separate fees and make pricing more transparent for consumers.

Additionally, Senators Amy Klobuchar and Jerry Moran introduced the Hotel Fees Transparency Act, which requires hotels and short-term rentals to display the full price that consumers would pay, including all fees, upfront. The American Hotel & Lodging Association supports this act, as it creates a single standard for displaying mandatory fees across the entire lodging ecosystem.

These proposals demonstrate the growing recognition of the need for better regulation and transparency in the hotel industry regarding resort fees. By addressing these fees through legislation, there is hope that consumers will have a clearer understanding of the total cost of their accommodations upfront.

The prevalence and profitability of resort fees

While resort fees may be an irritating aspect of the travel experience for many, it is worth noting that they are not as widespread as some might think. The American Hotel & Lodging Association claims that only 6 percent of hotels charge resort fees, and these fees typically average around $26 per night. However, despite their relatively low prevalence, resort fees remain profitable for hotels. According to a 2018 report by tourism analyst Bjorn Hanson, hotels generate nearly $3 billion annually from resort fees.

These fees can vary greatly depending on the hotel and its location. For example, budget-friendly hotels like Freehand Chicago may charge as little as $10 per night, while high-end establishments like Hotel Casa del Mar in Santa Monica, California, may charge up to $50 per night. Some hotels provide an itemized list of amenities covered by the fee, such as welcome drinks, daily yoga classes, bicycle use, and internet access. While these amenities may seem appealing, travelers should consider whether they would actively use them before accepting the additional cost.

Resort fees vs. transparent pricing

One of the major criticisms of resort fees is the lack of transparency in pricing. When conducting an online search for accommodations, consumers expect the displayed room rates to reflect the total cost of their stay. However, resort fees disrupt this transparency by concealing additional charges until the payment page is reached.

The Federal Trade Commission’s 2017 report confirmed that the separation of resort fees from room rates makes it challenging for consumers to compare prices accurately. This lack of transparency can lead to frustration and disappointment when travelers discover unexpected fees at check-in or during their stay. This issue highlights the importance of transparent pricing practices, where the final cost is clearly communicated to consumers from the initial search stage.

By promoting transparent pricing, hotels can ensure that travelers have a clear understanding of the total cost of their stay before making a reservation. This transparency not only enhances trust between hotels and guests but also allows consumers to make more informed decisions when selecting their accommodations.

Legal actions against resort fees

Legal actions against resort fees have gained traction over the past few years as consumer advocacy groups and state attorney generals push for clearer pricing practices in the hotel industry. Several states, including Pennsylvania, Texas, and Nebraska, have sued hotel companies over resort fees, resulting in some successful settlements. For instance, Marriott has settled cases in Pennsylvania and Texas, agreeing to include resort fees in the displayed prices on their websites.

Consumer advocacy groups like Travelers United have also taken legal action. In August, Travelers United filed lawsuits against Hyatt and Sonesta hotels for “falsely advertising” their rates by not including fees as part of the nightly rate, according to the complaints. These legal actions aim to ensure that hotels adhere to truth in advertising principles, where the price advertised is the price consumers ultimately pay. This push for transparency through legal means demonstrates the growing frustration among consumers and their desire for fair and upfront pricing practices in the hotel industry.

The role of credit card companies

Credit card companies can play a role in helping consumers avoid and dispute resort fees. If a traveler is dissatisfied with a hotel’s resort fee or believes that it was not adequately disclosed, they can appeal to their credit card company for a refund. Credit card companies may have policies in place to protect their customers from deceptive practices or undisclosed fees.

Additionally, filing a complaint with the credit card company can bring attention to the issue and potentially result in a chargeback, where the credit card company reverses the transaction and refunds the consumer. It is important for consumers to review their credit card agreement and understand the terms and conditions regarding chargebacks and disputed fees.

While credit card companies cannot single-handedly eliminate resort fees, their role in addressing customer disputes can provide some recourse for travelers who feel they have been deceived or unfairly charged. Consumers should contact their credit card companies directly for guidance on how to dispute resort fees and seek potential refunds.

Tips for avoiding and disputing resort fees

Travelers can employ several strategies to avoid and dispute resort fees:

1. Research and select hotels that do not charge resort fees: Websites like ResortFeeChecker.com allow users to search for hotels without resort fees, saving travelers the hassle of unexpected additional charges.
2. Request a waiver at check-in: Before handing over a credit card, travelers can request that the resort fee be waived, especially if they do not plan to use any amenities associated with the fee. This strategy may be more successful if supported by a legitimate reason, such as being a federal employee or having specific loyalty program status.
3. Appeal to credit card companies: If a traveler believes they were unfairly charged a resort fee or that it was not adequately disclosed, they can appeal to their credit card company for a refund. Credit card companies may have policies in place to protect customers from deceptive practices.
4. File a complaint with the state attorney general: Travelers can file a complaint with their state’s attorney general if they believe a hotel engaged in deceptive advertising or failed to disclose resort fees adequately. This strategy may be more effective in states where legal actions have been taken against resort fees.
5. Assess whether the additional amenities are worth the fee: Before accepting a resort fee, travelers should consider whether they will actively use the amenities covered by the fee. If these amenities are of little interest or unlikely to be used during the stay, it may be better to choose a hotel without resort fees.

These tips can help travelers navigate the complex landscape of resort fees and minimize their financial burden. By being proactive and informed, individuals can make choices that align with their preferences and budget.

Alternative strategies for dealing with resort fees

In addition to the tips mentioned earlier, travelers can consider alternative strategies for dealing with resort fees. These strategies involve being proactive and creative when it comes to negotiating fees or seeking additional value for their money. Some alternative strategies include:

1. Bundle options: Travelers can explore package deals or promotions that include resort fees in the overall price. This way, they can have a clearer understanding of the total cost while potentially enjoying additional benefits or discounts.
2. Loyalty program perks: Travelers who are members of hotel loyalty programs can leverage their status to negotiate or waive resort fees. Hotels often offer perks and benefits to loyal guests, such as complimentary upgrades or waived fees. By communicating their loyalty program status, travelers may increase their chances of receiving favorable treatment.
3. Negotiation techniques: When making a reservation or checking in, travelers can politely inquire about the possibility of a reduced or waived resort fee. This strategy may be more successful during off-peak travel periods when hotels may be more willing to accommodate requests in order to fill rooms.
4. Seek alternative accommodations: Instead of traditional hotels, travelers can explore alternative accommodations such as vacation rentals, hostels, or smaller boutique hotels that may not charge resort fees. These options can offer unique experiences while potentially avoiding additional charges.

By exploring these alternative strategies, travelers can potentially minimize or navigate resort fees more effectively. Each approach requires proactive communication, research, and an understanding of individual preferences and priorities.

The future of resort fees

The future of resort fees is uncertain, as ongoing discussions and legal actions continue to challenge their existence and transparency in pricing. The proposals before Congress demonstrate a growing awareness and concern about resort fees among lawmakers. If these proposals are successful, it could lead to significant changes in how the hotel industry operates and presents pricing information to consumers.

Additionally, the role of consumer advocacy groups and state attorney generals in pursuing legal actions against hotels that engage in deceptive advertising practices or fail to adequately disclose fees can contribute to changes in industry practices. Settlements like those involving Marriott in Pennsylvania and Texas have already resulted in more upfront disclosure and inclusion of resort fees in displayed prices.

Consumer demand for transparent pricing and fair treatment will likely play a role in shaping the future of resort fees. Travelers’ dissatisfaction with these fees, coupled with their willingness to seek alternatives and voice concerns, will continue to push hotels and lawmakers to reevaluate pricing practices.

Ultimately, the future of resort fees will depend on the actions taken by consumers, advocacy groups, and legislative bodies. By advocating for transparency, holding hotels accountable, and making informed choices, travelers can shape the direction and impact of resort fees in the years to come.