hillrider

We'll see if justice will be done -- in the meantime, the legal costs of this should be a warning about the use of hidden/poorly disclosed fees in the future.

Source: Travel Weekly

NEW YORK -- Starwood Hotels was slapped with a class-action lawsuit alleging that the company defrauded guests by misrepresented a "resort fee" as a legitimate tax. Bragar Wexler Eagel & Morgenstern in New York filed the lawsuit on Feb. 28 in New York State Supreme Court in Westchester County.

It alleges that Starwood fraudulently charges guests an undisclosed "resort fee" or similar fee, although the charge was "really not a tax remitted by Starwood to any governmental authority at all, but rather an additional charge that was improperly retained by Starwood."

The lawsuit names one plaintiff, but was filed as a class action on behalf of any guests who stayed at a Starwood hotel from March 1, 1999 through Feb. 28, 2002.

It seeks to recover damages, including punitive damages, of at least $100 million.

Peter D. Morgenstern, one of the firm's partners, said Starwood misrepresented the tax on its Web site and over its telephone reservation system.

A Starwood spokeswoman said the company "cannot comment on matters of pending litigation."

Brendan

I stayed at the Westin Resort in Hilton Head, SC, on 8-31 as a Free Friday. I recieved a bill under my door for '800' calls & a $10 resort fee. The new signs in the room promised free 800 access. When I complained, the receptionist cancelled the whole bill because 'The phone policy has just changed, the computers need updating, and at our hotel, free stays are truly free.'
Best of all, their computer told Starwood to give me 30 points as if I had paid the fee.

UpgradeMe

http://www.flyertalk.com/forum/Forum74/HTML/003230.html

Doppy

A lot of hotels charge their "resort" fees. What a scam, either build the price into the room rate, or don't charge it. Slipping it in and pretending that it's legitimate is fraudulent.

Next they'll charge you a "lobby fee" and an "elevator fee." We're not your accountants, we're guests. Charge us one inclusive rate, and let your accountants worry about the rest.

d

chix

My Westin Maui confirmation receipt clearly does NOT disclose a resort fee.

If they try to charge me when checking out or try to make me initial for it when I check in, do I have a case?

I would assume that since I'll have proof that they did not inform me in advance, I can insist that they remove the $10.42 daily charge.

Just curious on the expert opinions here!

What a scam... I don't believe Hilton resorts charge a resort fee.

Curious to see how this lawsuit ends up.

Roger

Well, the Hilton Clearwater Beach 'Resort' charged us a resort fee, but didn't offer any resort facilities other than a pool (which is pretty standard in any two bit motel).

[edited for typo]

[This message has been edited by Roger (edited 04-03-2002).]

Ocn Vw 1K

I've had good luck with some Starwood properties over the years waiving the resort fees when I pointed out that as a Plat. (nee Westin Premier Gold) most of what's included in the resort fee is also our elite benefits, so we're being "charged" for what we're already entitled to. My philosophy is that if the property offers a nice U/G or other special service, I'll grudgingly accept the charge if disclosed properly but I continue to object to these fees for Plats. as an incremental charge for the benefits we get at all non-resort properties which have far lower average rates.

thesilb

Whatever my feelings on the resort fee, I'm not sure I could say "yippee" to an otherwise great outfit having to pay hundreds of thousands, if not millions, of dollars in legal fees, court costs, and so forth, to defend this type of action. Especially where in the end, class members might get a dollar off coupon for a future stay or $50 or so, and the lawyers will get millions.

I'm an attorney, so don't get me wrong...I think people have the right to sue to correct injustices...just that I would never use the word "yippee" about a class action lawsuit over something kind of trivial from an otherwise ethical organization.

My personal two cents.

BoSoxFan45

With no comments on this case in paricular-

Consumer fraud is consumer fraud. Without class actions, consumer fraud at small levels - $100 a person or less - would go entirely unmitigated. Some, not all, companies would run wild ripping everyone off.

I am an attorney - class action. I'm not working on this case, though.

chix

Back to my original question:

If they try to charge me when checking out or try to make me initial for it when I check in, do I have a case since it was not previously disclosed?

Eastbay1K

This is a legitimate class action - and other hotel chains should receive similar treatment. Although it is said way too often and acted upon way too often, in this case, 'there ought to be a law' - for truth in pricing in the travel industry. Between the rental cars, the hotel rooms and the airline tickets, the nickels and dimes are billions of dollars. Any mandatory charge should be part of the price. If the service provider wants to itemize it later on your bill, so be it. Most rental cars have fees in excess of my 20% discount I receive. They have decided to itemize the cost of doing business specifically, pass it along, and not include it in the basic day rate. These resort charges are even worse, because you are paying for what you are already paying for. Enough rant. You know the story. And this rant has no reflection of my feelings for the SPG program.

Marysunshine

Just checked and I paid an $8.95 resort fee at the Intercontinental San Juan Hotel as well. Guess they're all getting in on a good thing.

CalItalian

And it's not just bogus resort fees...the latest is a $3-$5 "reservation fee" that some Las Vegas strip hotels are trying to get away with on top of a bogus "energy fee". Just raise the rates, we can take it!

jwhite4

But they can't! I have to think there are two reasons for 'fees':

1. They get to advertise their lower 'base' room rate, in order to appear low-priced. Having to advertise a higher price doesn't help a company.

2. Many companies/organizations have fixed rates for properties (ie. the gov't per diem rate). Starwood would need to honor that rate, but anything above that they can probably get away with charging.

Jeff

Sheryl

Until the hospitality industry is regulated similar to the way the DOT regulates airfare displays, this will continue. The government must get involved here for these extraneous charges to be put to rest. There is no other way as I see it. And there must be steep fines for non-compliance. Just recently, Travelocity was fined $50,000 by the DOT for improper fare displays. There's just no reason a similar mechanism can't be implemented for hotels.