Online Travel Booking and Bidding Agencies - Priceline wins "resort fee" lawsuit




iahphx
Mar 12, 12, 1:48 pm
Everyone who travels knows "resort fees" are slimy, but they don't get any slimier than when you bid for a hotel on priceline, win, and they get hit with the additional (and previously unknown) resort fee.

But because Priceline discloses that you MIGHT get hit by a resort fee, a California court ruled they were legal.

http://lawfuel.com/releases/good-news-for-priceline-com-keeps-getting-even-better-31174/

Not only does this practice penalize travellers, but it also penalizes hotels that try to play fair. Resort A wants to charge priceline guests $100/night. Resort B wants to charge the guests $120. Resort A has no resort fee. Resort B has a $30 fee. Resort B can accept $90 priceline bids (and then tack on $30), Resort A loses this business.

It's nuts, but it's apparently legal.


bittul
Mar 12, 12, 2:44 pm
Why did they even try to take priceline to court? Priceline never charged the "resort fee", the resort did. Priceline does a service and acts as the middleman for both the consumer and the merchant, and I don't see why they should be held responsible for the "legal" tactics of the resorts.

Otoh, the court should have at least obligated Priceline to make their disclaimer a bit more detailed. The standard warning should be replaced with something like "resorts in the area you requested charge an additional $0-20 daily for mandatory amenities, this charge will handled by the hotel during check in/out."

cordelli
Mar 12, 12, 3:06 pm
This was actually an appeals court, confirming a lower court ruling, so Priceline has won twice so far

See also this thread from the past about it

http://www.flyertalk.com/forum/online-travel-booking-bidding-agencies/925902-priceline-pet-peeve-ftc-complaint.html

That thread was referenced in a NY Times story about priceline fees as somebody being far from the first person to complain about it.

The decision in much greater detail is here

http://www.leagle.com/xmlResult.aspx?xmldoc=In%20CACO%2020120222050.xml&docbase=CSLWAR3-2007-CURR

But in most cases like this, it's because nobody reads the terms and conditions. From the court

Next a caption stated "Important Information," with these signaling words prominently placed, bold-faced, and in large type. There followed five paragraphs, each separated by a space and set off by bullet points. The language of the paragraphs is readable, and none of the paragraphs have more than four sentences. The fourth paragraph stated: "The reservation holder must present a valid photo ID and credit card at check-in. The credit card is required for any additional hotel specific service fees or incidental charges or fees that may be charged by the hotel to the customer at checkout. These charges may be mandatory (e.g., resort fees) or optional (parking, phone calls or minibar charges) and are not included in your offer price." (Italics added.) This disclosure clearly stated that the offer price did not include mandatory resort fees charged by the hotel to the customer at checkout. Priceline did not represent to customers that they would pay nothing in addition to the "Total Charges." Instead it expressly stated that hotels might make additional charges, some of which might be mandatory (such as resort fees) and some of which might be optional (parking, phone calls, or minibar charges). These additional charges, Priceline specified, "are not included in your offer price," the price the consumer would pay to Priceline. Therefore the practice of excluding mandatory fees from "Total Charges" which Priceline represented to consumers was not likely to mislead consumers.


cbn42
Mar 12, 12, 5:51 pm
Priceline could, if they wanted to, require hotels to include the resort fee in the bid amount. For some reason, they don't want to.

I would support a DOT regulation on this, similar to the recent one for airline price advertisements.

iahphx
Mar 12, 12, 7:09 pm
Priceline could, if they wanted to, require hotels to include the resort fee in the bid amount. For some reason, they don't want to.

I would support a DOT regulation on this, similar to the recent one for airline price advertisements.

Absolutely. The idea of a mandatory "resort fee" is ridiculous to start with (compulsory fixed hotel fees should be your "room rate"), but the idea that a hotel should be able to add an unknown amount to a winning bid is beyond absurd. There is no plausible business justification for Priceline not requiring hotels to include the fees in their acceptable price except a desire to sell more resort rooms by accepting "lower" deceptive prices. As I mentioned before, this policies penalizes "good" hotels who do the right thing and simply include required fees in their room rates.

I'm sure if priceline's name your own price was a bigger operation, the gov't would act. They're just lucky this deceptive practice squeaks by under the radar. Apparently, they have no shame.

BigFlyer
Apr 5, 12, 5:28 pm
If anyone wants to read the actual court decision, it's here: http://bit.ly/Hqjdmc



Everyone who travels knows "resort fees" are slimy, but they don't get any slimier than when you bid for a hotel on priceline, win, and they get hit with the additional (and previously unknown) resort fee.

But because Priceline discloses that you MIGHT get hit by a resort fee, a California court ruled they were legal.

http://lawfuel.com/releases/good-news-for-priceline-com-keeps-getting-even-better-31174/

Not only does this practice penalize travellers, but it also penalizes hotels that try to play fair. Resort A wants to charge priceline guests $100/night. Resort B wants to charge the guests $120. Resort A has no resort fee. Resort B has a $30 fee. Resort B can accept $90 priceline bids (and then tack on $30), Resort A loses this business.

It's nuts, but it's apparently legal.

Often1
Apr 5, 12, 6:26 pm
Priceline could, if they wanted to, require hotels to include the resort fee in the bid amount. For some reason, they don't want to.

I would support a DOT regulation on this, similar to the recent one for airline price advertisements.
Hotels would love it if DOT promulgated rules. DOT has no jurisdiction over them !

Often1
Apr 5, 12, 6:30 pm
A great thread for all those who post the "sue the b**tard*" recommendation for every situation and then go on to tell you what they would like to be but is not.

This lawsuit was doomed because P/Line's terms could not be more clear. And, the hotels would be off the hook if they were defendants because their terms are likely clear as well.

Now, you may not like it, but that's a different story, a different thread and a different argument.

So, buyer beware. Either spend the time to read the t&c and do the research or be prepared.

dieuwer2
Apr 5, 12, 6:33 pm
What's next? A hotel room rate of $1 and a resort fee of $99? :td:

anngi
Apr 5, 12, 8:28 pm
Priceline is upfront about the resort fees but what would be nice if they would include the parking fees. I've been burned at the Marriott Coconut Grove Courtyard in MIA with a $15 ppn mandatory valet fee.

mile ho
Apr 5, 12, 11:19 pm
Probably doesn't matter a whit.. but

This is exactly why I will never use Priceline again. When they started letting hotels use resort fees, parking fees, and then let them adopt the heinous practice of assigning substandard rooms to priceline 'winners', I stopped using them altogether. Thousands and thousands of dollars a year... I quit them completely.

Substandard rooms? many hotels are now reserving their unrenovated rooms for these special winners.

wharvey
Apr 6, 12, 5:18 am
I have used Priceline for hundreds of room nights over the years, and can honestly say that I have never received a "substandard" room. On a few occasions, I have gotten a room near the elevator or ice area (which I hate) and I simply went down and asked if I could get another room. Has never been an issue.

Only once did I get a room that was potentially substandard... but I had booked the room that afternoon and the hotel was pretty booked.... so they could not move me the first night... but did for the next three nights.

When I consider how much I have saved over the years, I am willing to take a risk that I may get a less than perfect room.

I personally do not believe there are "many" hotels that reserve their bad rooms for Priceline winners... but I am sure some do. And, honestly, I am not sure there is anything wrong with that. As long as they have complied with what I bid, I am getting what was promised.

lo2e
Apr 6, 12, 5:21 am
I personally do not believe there are "many" hotels that reserve their bad rooms for Priceline winners... but I am sure some do. And, honestly, I am not sure there is anything wrong with that. As long as they have complied with what I bid, I am getting what was promised.

I feel the same way - as long as the hotel is offering me what it should be offering me for the quality level I bid, I don't care if it's a newly refurbished room or not. Obviously if it's run down, dirty, or otherwise unusable, I will make a stink.

dieuwer2
Apr 6, 12, 6:56 am
I usually book a room via Priceline if I absolutely do not care which hotel I get (only book 4*+) AND I know that I will get a hotel in a particular area of town.
Priceline areas that encompass entire cities (like in Europe) are a no no.
That said, many times you can get very good discount or promo rates on Hilton, Hyatt, Marriott, etc. by booking in advance.

mile ho
Apr 6, 12, 8:35 am
I personally do not believe there are "many" hotels that reserve their bad rooms for Priceline winners... but I am sure some do. And, honestly, I am not sure there is anything wrong with that. As long as they have complied with what I bid, I am getting what was promised.

I would have to concede that most likely that you right on the 'many' part. But I had two back to back instances where particular, unrenovated wings of hotels were reserved for priceline winners.

The first was the Sheraton Keahou in Kona. Manager even told me a particular unrenovated wing was reserved for winners like me. WOW. And you should have seen the rooms. Billed as a resort? Run down 2 star was more like it. Charged resort fee and parking, too. Sagging beds, stained carpet and bedspread, toilet from the seventies, like you see in a truck stop, bad ancient TV and broken A/C. Oh, and too, they offered to upgrade me to a renovated room at check-in. Insulting.

I know there are different classes of rooms in a hotel. I get that. But this was blatant misrepresentation, imho. Priceline continued to allow them to sell these rooms as resort rate at a price that should have been half that. I get screwed and so do the other hotels in that area that are playing above board.

And I blame Priceline. They are the ones that 'sold' me that room. If it ain't right they should either make it right or discontinue business with like hotels.

And even though I know what happened to me won't happen often, it is now a matter of principle. I won't go back.

ColoBill1
Apr 6, 12, 9:07 am
I know there are different classes of rooms in a hotel. I get that. But this was blatant misrepresentation, imho. Priceline continued to allow them to sell these rooms as resort rate at a price that should have been half that. I get screwed and so do the other hotels in that area that are playing above board.

The following points are included in Priceline's guidance to hotels that wish to partner with Priceline, or at least they were in the instructional/guidance website I have dated circa 2001. If anyone has a more current reference for hotel partner requirements, I'd appreciate knowing it.


PRICELINE.COM MANDATES THE FOLLOWING FROM YOUR HOTEL:

Assign Priceline Room Type: You will ensure that all hotel rooms are guaranteed for double-occupancy with a preference for non-smoking.

Accommodate Special Requests: You will try to accommodate, to the best of your ability, any special needs requested directly by a Priceline guest (i.e., bedding, smoking, etc.).

Extend Valued Guest Treatment: You will place the Priceline guest in a room comparable to (or better than) your "best available" room assignment. You will welcome the Priceline guest just as you would welcome any other valued guest. (Remember this is your opportunity to "brand" that guest for a return visit.)

BigFlyer
Apr 6, 12, 11:53 am
No, the lawsuit was doomed because the California state courts have increasingly become anti-consumer.

If you read the decision, it was (in part) under California Business and Professions Code sections 17200 and following. 17200 prohibits:

any unlawful, unfair or fraudulent business act or practice
and unfair, deceptive, untrue or misleading advertising

Yes, the terms and conditions do say in the fine print that a resort fee can be levied. However, as stated in the court's decision, when you bid you see a figure labeled "total charges" which is your bid plus service charges and taxes, but not resort fees.

That sounds unfair, deceptive, untrue or misleading to me.



This lawsuit was doomed because P/Line's terms could not be more clear. And, the hotels would be off the hook if they were defendants because their terms are likely clear as well.

wharvey
Apr 6, 12, 1:50 pm
What did Priceline say when you complained?

I personally would not have accepted a room with broken A/C.... that is unacceptable. As is a stained bedspread.

I wonder if Priceline knows these thing happen at these rogue properties?

I would have to concede that most likely that you right on the 'many' part. But I had two back to back instances where particular, unrenovated wings of hotels were reserved for priceline winners.

The first was the Sheraton Keahou in Kona. Manager even told me a particular unrenovated wing was reserved for winners like me. WOW. And you should have seen the rooms. Billed as a resort? Run down 2 star was more like it. Charged resort fee and parking, too. Sagging beds, stained carpet and bedspread, toilet from the seventies, like you see in a truck stop, bad ancient TV and broken A/C. Oh, and too, they offered to upgrade me to a renovated room at check-in. Insulting.

I know there are different classes of rooms in a hotel. I get that. But this was blatant misrepresentation, imho. Priceline continued to allow them to sell these rooms as resort rate at a price that should have been half that. I get screwed and so do the other hotels in that area that are playing above board.

And I blame Priceline. They are the ones that 'sold' me that room. If it ain't right they should either make it right or discontinue business with like hotels.

And even though I know what happened to me won't happen often, it is now a matter of principle. I won't go back.

mile ho
Apr 6, 12, 11:34 pm
What did Priceline say when you complained?

I personally would not have accepted a room with broken A/C.... that is unacceptable. As is a stained bedspread.

I wonder if Priceline knows these thing happen at these rogue properties?

When my wife and I go to Hawaii we are on the go. We hike, snorkel and are rarely in the room. We had only two days at this property and I wasn't going to take any measurable amt of time out of our vacation to change to another hotel. So we went ahead and stayed. The A/C was never fixed to our satisfaction even though they tried.

I took pictures of every one of my complaints. I refused on principle to pay the upgrade price. And so after we got home, when I explained my situation to Priceline, they refused to do anything about it because we decided to stay. They are fully aware that the Sheraton Keahou made a practice of reserving special rooms for Priceline winners. I informed them more than once and I believe so did others; I even gave them the managers name who told me thus.

My disdain for Priceline came from this sort of incident. Too, I abhor the practice of allowing resort fees to be charged - and other ancillary fees - because an honest transaction in an opaque booking situation should be based on specific price for a specific hotel rating. Being allowed to add fees afterward undermines the fairness of the process, both for the competing hotels and most importantly, the customer.

I bid on the 3.5 star. They 'graciously' upgraded me to a resort. I DID NOT WANT A FREAKIN RESORT. Because with that most likely comes a special fee or two or three. And with that my bid was no longer my bid. To stay at that property just became much more expensive. Properties like this one are in the Resort category so anyone who even bids on a 4 star in that area is likely to get what I got. This is a very bad practice by both the hotel and Priceline .. that is allowing rogue properties to game the system at the expense of the customer. It cost Priceline many, many thousands of dollars or bookings since then. I simply don't use them anymore. 50k in bookings? Quite likely.

Oh you don't like your room? of course you don't. Here, just pay us another xxx per night and we'll give you a room that is in line with the 3.5 star you bid on.

Priceline did nothing on my behalf even though I provided pictures and a detailed commentary from a specific manager - whose name and phone number I gave them - regarding this BS. I gave P'line all the info they needed, that is, if they cared. IMHO? They didn't.

WRONG, WRONG, WRONG.

lewisc
Apr 7, 12, 8:34 am
The big print says something like we've found a hotel which agreed to your price. The big print tells us the total taxes and fees. The small print says a hotel might decide to charge a resort fee. The small print says the resort fee isn't one of the fees included in the total taxes and fees. We have no idea if we're going to wind up with a resort, unrequested upgrade and we have no idea what that fee will be. What's worse a hotel without a resort fee might have "accepted" a bid higher then what it took to win a resort fee hotel but lower then the total cost including a resort fee. Hotels at all * levels are now charging a resort fee.

No question the practice is deceptive. California has said the practice isn't illegal. The terms and conditions don't clarify an issue, it contradicts it.

With a conventional reservation I have the option of including the resort fee in my cost before I decide to book.

dieuwer2
Apr 7, 12, 12:57 pm
What I don't understand is why hotels would except a "Priceline rate" well below their own best published rate.
Why not directly deal with the customer and offer a "Priceline rate". Cuts out the middleman.

lewisc
Apr 7, 12, 1:18 pm
What I don't understand is why hotels would except a "Priceline rate" well below their own best published rate.
Why not directly deal with the customer and offer a "Priceline rate". Cuts out the middleman.

A hotel doesn't have to match prices offered through opaque channels such as Priceline and Hotwire.

Some hotels are offering lower rates in exchange for a pre-paid non-refundable reservation. The rate isn't quite as low as a PL rate but that's the equivalent to what you're suggesting.

dieuwer2
Apr 7, 12, 1:24 pm
A hotel doesn't have to match prices offered through opaque channels such as Priceline and Hotwire.

Some hotels are offering lower rates in exchange for a pre-paid non-refundable reservation. The rate isn't quite as low as a PL rate but that's the equivalent to what you're suggesting.

Hotels don't have to match anything.
The question was: why do hotels accept the "Priceline rate" which is well below their own lowest best rate (e.g. a pre-paid non-refundable rate)?

lewisc
Apr 7, 12, 5:45 pm
Hotels don't have to match anything.
The question was: why do hotels accept the "Priceline rate" which is well below their own lowest best rate (e.g. a pre-paid non-refundable rate)?

They have to match an internet rate when the hotel has a policy of matching any internet rate. They offer lower rates to PL and Hotwire because the booking is opaque. The customer isn't booking a specific hotel. The hotel isn't obligated to honor a "price match" policy when the identity of the hotel isn't known in advance.

The theory is a hotel is making money, as long as the price is higher then the incremental costs (washing towels and sheets) if the room would otherwise be empty and if the customer would otherwise stay at a different property.

dieuwer2
Apr 7, 12, 6:51 pm
They have to match an internet rate when the hotel has a policy of matching any internet rate. They offer lower rates to PL and Hotwire because the booking is opaque. The customer isn't booking a specific hotel. The hotel isn't obligated to honor a "price match" policy when the identity of the hotel isn't known in advance.

The theory is a hotel is making money, as long as the price is higher then the incremental costs (washing towels and sheets) if the room would otherwise be empty and if the customer would otherwise stay at a different property.

You think that by calling a hotel directly you could do better than best online rate and get close to the theoretical Priceline rate?

lewisc
Apr 7, 12, 8:50 pm
You think that by calling a hotel directly you could do better than best online rate and get close to the theoretical Priceline rate?

Some posters say yes. I guess it depends on the hotel. Probably also depends how far in advance you call. Day of stay. Late afternoon. Evening. Maybe yes. Weeks before maybe no.

mbstone
Apr 8, 12, 2:01 am
The California Court of Appeal, Second District, Division Three, had its erred. I hope the plaintiffs are successful in obtaining review by the California Supreme Court.

Priceline could, if they wanted to, require hotels to include the resort fee in the bid amount. For some reason, they don't want to. I would support a DOT regulation on this, similar to the recent one for airline price advertisements.

Unfortunately DOT doesn't regulate deceptive advertising by hotels/travel agents, FTC does (at least theoretically), and they're most emphatically not interested in the issue.
.

mile ho
Apr 8, 12, 7:59 am
Honestly, I'm not unhappy that I don't do biz with Priceline anymore.

I focus on point earning opportunities, Best Rate Guarantees and other means to reduce my cost on hotels.

Used to be Priceline's biggest cheerleader. Even called Shatner my daddy. Said if I ever became widowed I'd marry Priceline.

But I do better than Priceline now. It's just a little more work, but I used to put in quite a bit researching before I bid.

Priceline could add a feature for the bidder, if they wanted to, that excluded any hotel that charged a resort or any other ancillary and mandatory fee. I would return to Priceline in a limited way if that were the case. In other words make the opaque bid the final and true price. Hey, seems like such a novel idea. Kinda the way it used to be.

rasheed
Apr 16, 12, 7:04 am
I am a big Priceline fan, but the resort fee issue is a major loser. The primary city of issue is Las Vegas, but other areas are possible.

Hotwire did this right and tells you before you accept if there is a fee and how much it is likely to be.

Obviously, if consumers stopped using the site because of this, they would change, but Priceline is way too popular in Las Vegas.

Complaining does work, they made changed for opaque on Trump and I think one other south strip property, so it is possible if consumers make a decision based on their wallet if there are no upfront pricing laws.

Rasheed

iahphx
Apr 16, 12, 8:44 am
I am a big Priceline fan, but the resort fee issue is a major loser. The primary city of issue is Las Vegas, but other areas are possible.

Hotwire did this right and tells you before you accept if there is a fee and how much it is likely to be.

Obviously, if consumers stopped using the site because of this, they would change, but Priceline is way too popular in Las Vegas.

Complaining does work, they made changed for opaque on Trump and I think one other south strip property, so it is possible if consumers make a decision based on their wallet if there are no upfront pricing laws.

Rasheed

Are you sure Hotwire tells you the amount of any resort fee before you buy? That would be very interesting.

I would ask that folks keep this thread limited to resort fee charges. There are a lot of other pros and cons to using the opaque bid sites, but the resort fee issue is a somewhat unique -- and particularly awful -- problem.

lewisc
Apr 16, 12, 10:39 am
Are you sure Hotwire tells you the amount of any resort fee before you buy? That would be very interesting.

I would ask that folks keep this thread limited to resort fee charges. There are a lot of other pros and cons to using the opaque bid sites, but the resort fee issue is a somewhat unique -- and particularly awful -- problem.

It doesn't tell you the exact amount, doing so might allow you to determine the exact property.

Under hotel price and additional information.
This hotel typically charges all guests a resort fee regardless of how the room is booked. The hotel collects this fee of about US$ 30 per room per night directly from you, so it won't show in your HotwireŽ total.

This is for a 5* hotel N Strip Las Vegas. BB doesn't think the number is a reliable way to determine the identity of the hotel.

iahphx
Apr 16, 12, 1:46 pm
It doesn't tell you the exact amount, doing so might allow you to determine the exact property.

Under hotel price and additional information.


This is for a 5* hotel N Strip Las Vegas. BB doesn't think the number is a reliable way to determine the identity of the hotel.

OK, thanks. So they warn you of a resort fee, but don't include it. Obviously, the better practice would be to simply include the fee, but that would make it very difficult for them to be competitive with priceline.

redtop43
Apr 17, 12, 10:27 am
Early in this thread, someone noted a post I made in 2009 about Priceline resort fees. I also was consulted extensively by "The Haggler" who wrote the New York Times column about the resort fees. In response to my 2009 post, I was contacted by a class action attorney who read it, and asked if I would be willing to serve as lead plaintiff in a lawsuit, but after discussion decided I would not make a good named plaintiff because I knew too much. They wanted someone who could legitimately complain that they were blindsided.

The fact is that - assuming you read all the fine print - you do in fact have a choice, which is to not use Priceline. I believe that Priceline's guarantee would protect you if you actually paid more than the regular room rate. For example, if a hotel charged $100 plus a $15 resort fee on their website and you got the hotel for $105, then had to pay $15, Priceline would reimburse you - I think. I can say that I did get reimbursed once by Priceline after doing a "Name Your Own Price" for a hotel in Las Vegas that had a better special on their own website. I think they refunded enough to give me a rate 20% below the hotel website rate. (Resort fees were not an issue that time.)

So I am somewhat sympathetic with the court decision (unfortunately) but I would still like the FTC to rule that a slogan of "Name Your Own Price" is unfair and deceptive, because you cannot in fact name your own price. You cannot make an agreement to pay a certain amount and get your room.

Suppose you walked into Walmart and there was a big sign at the entrance that said "When you check out and authorize your credit card, we will charge your credit card and then present you with a second bill of an amount we determine. If you don't pay the second bill you cannot leave the store with your merchandise and we will not refund your money. If you do not agree to these terms please do not enter the store." I guess your choice would be to take your changes, or shop at Target.

The charges may be legal, but I still think the slogan is deceptive.

iahphx
Apr 17, 12, 10:58 am
The charges may be legal, but I still think the slogan is deceptive.

I honestly don't think the resort fee charges are legal; I think they fall within the broad definition of illegal deceptive business practices for many of the reasons you state.

More importantly, the practice is obviously wrong and morally indefensible. The only reason Priceline has been able to "get away with it" is government inertia and a failure to understand the issue. If "naming your own price" on resort stays was a bigger business, I'm sure the gov't would outlaw this practice. Heck, Congress just made airlines quote TAXES in their advertised prices! But since this an obscure consumer rip-off -- and one that's part of a process that actually overall benefits consumers by giving them access to cheaper hotel rooms -- it slips through the cracks. And until a customer wins a lawsuit in a state court, it will probably continue to do so.

lewisc
Apr 19, 12, 7:34 am
I agree with your main point, mandatory "resort fees" charged to customers who booked via PL probably don't affect enough people to be an issue with many regulators.

The people being hurt are participating hotels which don't charge resort fees as well as customers. A hotel can have a PL or Hotwire rate slightly higher then a hotel in the same zone and * level. That hotel will lose bookings and the customer will be paying a higher total price (including resort fee) then if you "won" (PL) or booked (Hotwire) a property with a slightly higher posted price. We don't have that option. Hotwire only displays the hotel in the * level and zone with the lowest posted price and PL only uses the posted price (not posted price + resort fee) in matching "bids" with prices.

Mandatory resort fees don't help any consumers and doesn't give them access to cheaper hotel rooms. It just changes the way the price is displayed. Some consumers won't research the resort fee or might think it's optional. Consequently a resort fee is likely to increase total hotel rates (including resort fees).

Optional resort fees might give guests who don't use services covered by the resort fees access to cheaper hotel rooms. An optional resort fee might cover things like exercise room, newspaper and internet.

Very few resort fees are optional. A resort fee isn't optional if a guest has to go through hoops to get it removed. I'll make it easy. A resort fee should only be considered optional if the resort only charges it if the guest specifically requests it. The "default" is to assume the guest doesn't want to pay the fee or utilize the services.

Purpose of resort fees is to hide price increases, make a hotel look cheaper in search engines, reduce commission paid and give a hotel an unfair advantage in opaque booking systems.






I honestly don't think the resort fee charges are legal; I think they fall within the broad definition of illegal deceptive business practices for many of the reasons you state.

More importantly, the practice is obviously wrong and morally indefensible. The only reason Priceline has been able to "get away with it" is government inertia and a failure to understand the issue. If "naming your own price" on resort stays was a bigger business, I'm sure the gov't would outlaw this practice. Heck, Congress just made airlines quote TAXES in their advertised prices! But since this an obscure consumer rip-off -- and one that's part of a process that actually overall benefits consumers by giving them access to cheaper hotel rooms -- it slips through the cracks. And until a customer wins a lawsuit in a state court, it will probably continue to do so.

iahphx
Apr 19, 12, 8:16 pm
Has anyone ever tried to get Washington to make mandatory resort fees illegal? I would think it would be a popular bit of legislation or rulemaking. I guess the hotel chains would be against it, but probably not that vociferously. In the scheme of things, it's not that much money to them, and I'm sure they recognize that these fees are unethical.


I agree with your main point, mandatory "resort fees" charged to customers who booked via PL probably don't affect enough people to be an issue with many regulators.

The people being hurt are participating hotels which don't charge resort fees as well as customers. A hotel can have a PL or Hotwire rate slightly higher then a hotel in the same zone and * level. That hotel will lose bookings and the customer will be paying a higher total price (including resort fee) then if you "won" (PL) or booked (Hotwire) a property with a slightly higher posted price. We don't have that option. Hotwire only displays the hotel in the * level and zone with the lowest posted price and PL only uses the posted price (not posted price + resort fee) in matching "bids" with prices.

Mandatory resort fees don't help any consumers and doesn't give them access to cheaper hotel rooms. It just changes the way the price is displayed. Some consumers won't research the resort fee or might think it's optional. Consequently a resort fee is likely to increase total hotel rates (including resort fees).

Optional resort fees might give guests who don't use services covered by the resort fees access to cheaper hotel rooms. An optional resort fee might cover things like exercise room, newspaper and internet.

Very few resort fees are optional. A resort fee isn't optional if a guest has to go through hoops to get it removed. I'll make it easy. A resort fee should only be considered optional if the resort only charges it if the guest specifically requests it. The "default" is to assume the guest doesn't want to pay the fee or utilize the services.

Purpose of resort fees is to hide price increases, make a hotel look cheaper in search engines, reduce commission paid and give a hotel an unfair advantage in opaque booking systems.

HCA
Apr 23, 12, 7:12 pm
Priceline is upfront about the resort fees but what would be nice if they would include the parking fees. I've been burned at the Marriott Coconut Grove Courtyard in MIA with a $15 ppn mandatory valet fee.

Even you don't park there? If so I will dispute the final bill or even with my cc company.



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