Hidden Charges: Are Hotel Resort Fees Illegal?

The hotel industry has long been plagued by a contentious issue that has left many travelers feeling frustrated and misled: resort fees. These additional charges, often tacked on to the initial room rate, can range from a few dollars to upwards of $50 per night, and are typically justified as covering the cost of amenities such as Wi-Fi, parking, and fitness centers. But are hotel resort fees illegal?

What are Resort Fees?

Resort fees, also known as destination fees or amenity fees, are charges levied by hotels and resorts to cover the cost of various amenities and services. These fees can vary widely depending on the hotel and its location, but common amenities that are often included in resort fees include:

  • Wi-Fi access
  • Parking
  • Fitness center or gym access
  • Pool or beach access
  • Business center or meeting room access
  • Local phone calls
  • Newspaper delivery

Resort fees are typically charged on a per-night basis, and can range from a few dollars to upwards of $50 per night. In some cases, resort fees can even exceed the initial room rate, leaving travelers feeling surprised and misled.

The Controversy Surrounding Resort Fees

The controversy surrounding resort fees centers on the fact that they are often not clearly disclosed to travelers at the time of booking. Many hotels and resorts bury the resort fee in the fine print, or fail to mention it altogether, leaving travelers to discover the additional charge only after they have arrived at the hotel.

This lack of transparency has led to widespread criticism of the hotel industry, with many travelers feeling that resort fees are nothing more than a way for hotels to pad their profits. In fact, a 2020 survey by the American Hotel and Lodging Association found that 71% of travelers considered resort fees to be a “major annoyance.”

Are Resort Fees Illegal?

So, are resort fees illegal? The answer is not a simple one. While there is no federal law that specifically prohibits resort fees, there are several laws and regulations that govern the way in which hotels and resorts disclose their fees to travelers.

The Federal Trade Commission (FTC), for example, requires hotels and resorts to clearly and conspicuously disclose all fees associated with a room booking, including resort fees. This means that hotels and resorts must clearly disclose the resort fee on their website, as well as in any advertising or promotional materials.

In addition, many states have their own laws and regulations governing resort fees. In Nevada, for example, hotels and resorts are required to clearly disclose all fees associated with a room booking, including resort fees. In California, hotels and resorts are prohibited from charging resort fees unless they are clearly disclosed at the time of booking.

Class-Action Lawsuits and Settlements

In recent years, there have been several class-action lawsuits filed against hotels and resorts over their resort fees. In 2019, for example, a class-action lawsuit was filed against Marriott International, alleging that the company had failed to clearly disclose its resort fees to travelers.

The lawsuit, which was settled in 2020, required Marriott to pay $17.5 million to affected travelers, as well as to clearly disclose its resort fees on its website and in any advertising or promotional materials.

Similar lawsuits have been filed against other major hotel chains, including Hilton and Hyatt. In 2020, Hilton agreed to pay $16 million to settle a class-action lawsuit over its resort fees, while Hyatt agreed to pay $10 million to settle a similar lawsuit.

What Can Travelers Do?

So, what can travelers do to avoid surprise resort fees? Here are a few tips:

  • Always read the fine print: Before booking a hotel room, make sure to read the fine print carefully. Look for any mention of resort fees, and make sure you understand what is included in the fee.
  • Check the hotel’s website: Check the hotel’s website to see if they clearly disclose their resort fees. If they don’t, it may be a red flag.
  • Ask about resort fees: When booking a hotel room, ask the hotel directly about resort fees. They should be able to tell you whether or not they charge a resort fee, and what is included in the fee.
  • Consider alternative hotels: If you’re not comfortable with a hotel’s resort fee, consider alternative hotels that don’t charge a resort fee.

By being aware of resort fees and taking steps to avoid them, travelers can save money and avoid surprise charges on their hotel bill.

Conclusion

Resort fees are a contentious issue in the hotel industry, with many travelers feeling frustrated and misled by these additional charges. While there is no federal law that specifically prohibits resort fees, there are several laws and regulations that govern the way in which hotels and resorts disclose their fees to travelers.

By being aware of resort fees and taking steps to avoid them, travelers can save money and avoid surprise charges on their hotel bill. Whether or not resort fees are ultimately deemed illegal, one thing is clear: transparency and clear disclosure are key to building trust between hotels and their guests.

What are hotel resort fees?

Hotel resort fees are additional charges that hotels and resorts impose on guests for various services and amenities. These fees can include access to fitness centers, pools, Wi-Fi, and other services that were previously included in the room rate. The fees are usually mandatory and can range from $10 to $50 per night, depending on the hotel and its location.

The fees are often not transparently disclosed, and guests may not be aware of them until they check-in or receive their bill. This lack of transparency has led to controversy and criticism from consumer advocacy groups, who argue that the fees are unfair and deceptive.

Are hotel resort fees illegal?

The legality of hotel resort fees is a matter of debate. While the fees are not explicitly prohibited by law, they are subject to certain regulations and guidelines. In the United States, the Federal Trade Commission (FTC) has issued guidelines requiring hotels to clearly disclose any additional fees, including resort fees, upfront.

However, the FTC guidelines are not always enforced, and many hotels continue to charge resort fees without adequate disclosure. Some states, such as Nevada and Florida, have enacted laws requiring hotels to disclose resort fees more clearly, but the laws vary widely, and enforcement is often inconsistent.

Why do hotels charge resort fees?

Hotels charge resort fees for a variety of reasons. One reason is to increase revenue without appearing to raise room rates. By charging a separate fee for amenities, hotels can attract price-sensitive customers who are comparing room rates online. Resort fees can also help hotels to offset the costs of providing amenities and services.

Another reason hotels charge resort fees is to create a new revenue stream. With the rise of online travel agencies and meta-search engines, hotels have seen their profit margins decline. Resort fees provide a way for hotels to generate additional revenue without sacrificing room rates.

How can I avoid paying resort fees?

There are several ways to avoid paying resort fees. One way is to carefully research the hotel’s policies before booking a room. Look for hotels that do not charge resort fees or offer a clear and transparent fee structure. You can also try negotiating with the hotel to waive the fee, especially if you are a loyalty program member or booking a long stay.

Another way to avoid resort fees is to book a room through a travel agent or a hotel’s own website. Some hotels offer packages or promotions that include the resort fee, which can be a better value than booking a room separately. You can also consider staying at a hotel that does not charge resort fees, such as a budget hotel or a boutique hotel.

Can I dispute a resort fee charge?

Yes, you can dispute a resort fee charge if you feel that it was not adequately disclosed or if you did not use the amenities and services included in the fee. If you are disputing a charge, it is essential to contact the hotel directly and explain your concerns. Be polite and respectful, and provide evidence to support your claim.

If the hotel refuses to waive the fee, you can contact your credit card company or the relevant consumer protection agency in your state. Keep in mind that disputing a charge can be time-consuming and may not always be successful. It is essential to carefully review the hotel’s policies and fee structure before booking a room to avoid disputes.

Are resort fees the same as destination fees?

Resort fees and destination fees are similar but not identical. Destination fees are charges imposed by hotels and resorts for services and amenities that are specific to the local area. These fees can include access to local attractions, transportation, and other services. Like resort fees, destination fees are usually mandatory and can range from $10 to $50 per night.

The key difference between resort fees and destination fees is that destination fees are often more transparent and clearly disclosed. Hotels and resorts typically provide a detailed breakdown of the services and amenities included in the destination fee, which can help guests to make informed decisions about their stay.

What can I do if I feel that a resort fee is unfair?

If you feel that a resort fee is unfair, you can take several steps to express your concerns. One way is to contact the hotel directly and explain your concerns. Be polite and respectful, and provide evidence to support your claim. You can also contact the relevant consumer protection agency in your state or file a complaint with the Federal Trade Commission.

Another way to express your concerns is to leave a review or provide feedback on the hotel’s website or social media channels. This can help to raise awareness about the issue and encourage the hotel to review its policies and fee structure. You can also consider choosing a different hotel or resort for your next stay, one that has a more transparent and fair fee structure.

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