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Washington DC Attorney General sues Marriott over "deceptive resort fees"

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Washington DC Attorney General sues Marriott over "deceptive resort fees"

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Old Jul 12, 2019, 8:33 pm
  #91  
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Originally Posted by itsaboutthejourney
Some of the 'amenities' are insulting: a coupon book? Bottles of Pepsi water? Access to the pool? I agree that if properties added real value there would be less backlash and anger about these fees.

Perhaps even a choice of packages:

Resort Package A (maybe more business focused): parking, Enhanced Wifi, several pages of printer use, item pressed or cleaned, etc.

Resort Package B: maybe more for a family

Resort Package C: maybe includes almost everything you'd need
Well now you sound like an airline trying to promote the NDC.
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Old Jul 12, 2019, 10:09 pm
  #92  
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Originally Posted by clublounger
I made the decision years ago, when resort fees first appeared - I NEVER spend a penny beyond my room charges at a hotel that imposes a resort fee. No dining, no spa, no sundries, no pool-side anything. My own little protest. Works for me. If most guests cut back on ancillary spending the hotel operators would notice.
That's a great idea. I've never had occasion to stay at a hotel with a resort fee; but I would do the same thing. I'd take it one step further and tell the GM that that is what I'm doing and why.


Originally Posted by pinniped
There is literally no reason for these fees to exist other than trickery and deception. None. They should be illegal, full stop.
+1.


Originally Posted by pinniped
I go back to the fundamental point that there is no legitimate reason for a mandatory resort fee and never was. It's solely designed to deceive customers.
I agree. That is, indeed, the sole reason for resort fees.


What's more, I would object to resort fees which are calculated as a percentage of the base rate on principle. If the hotel is providing services for which it wants to recover the cost, then recover the cost. Percentage-based resort fees just make their fundamental deceptive purpose more obvious.
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Old Jul 12, 2019, 10:16 pm
  #93  
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Originally Posted by Flying for Fun
Again, not true! The fee is disclosed before the rates are shown and again before confirming the booking.
I think you’re missing the single most important part of consumer protection regulations around pricing in the 21st century: a large majority of price discovery is done in various forms of price comparison websites (whether a booking.com, a corporate portal or even the Marriott website) and it is here where the hotel owners get by far the largest benefit from resort fees: it makes a hotel look cheaper than it actually is.

This is why the principle is illegal in most developed countries.
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Old Jul 13, 2019, 12:58 am
  #94  
 
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Originally Posted by EuropeanPete


I think you’re missing the single most important part of consumer protection regulations around pricing in the 21st century: a large majority of price discovery is done in various forms of price comparison websites (whether a booking.com, a corporate portal or even the Marriott website) and it is here where the hotel owners get by far the largest benefit from resort fees: it makes a hotel look cheaper than it actually is.

This is why the principle is illegal in most developed countries.
Not at all! You are missing my point. If someone is shocked to learn about a resort fee at check-out then they haven't done their homework. Full stop! It isn't hidden. Full stop! It amazes me that people make mistakes, cry victim, shift blame elsewhere and others jump in to support them.

I am very much in support of all-in pricing like Europe and Australia. However, simply adding a resort fee to a room rate (which is impossible to do if the resort fee isn't static) and displaying that in a search result still doesn't give you the full picture unless all taxes from all levels of government are also included for all-inclusive pricing.

I have already illustrated that two properties in two adjacent municipalities with two different tax structures can vary greatly in total cost on similar rooms with identical rates. The property that has a favourable tax structure could add a resort fee and still be cheaper while the other is disadvantaged. I care more about the bottom line and don't really care how they slice and dice it. That information is available if one chooses to use it.

Until all travel providers show all-inclusive pricing for hotels everywhere the rates will always show cheaper than the actual cost if there is a resort fee or not.

Tip: For visitors staying 59 days or less in Chile they are exempt from taxes so the price you see is the price you pay.

James
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Old Jul 13, 2019, 7:55 am
  #95  
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Originally Posted by Flying for Fun
Not at all! You are missing my point. If someone is shocked to learn about a resort fee at check-out then they haven't done their homework. Full stop! It isn't hidden. Full stop! It amazes me that people make mistakes, cry victim, shift blame elsewhere and others jump in to support them.
You keep saying this, and you are simply factually wrong.

I can book the Westin New York Times Square in a major corporate travel portal and *never* see that it has a $30 resort fee until I'm receiving an email receipt after the stay is over.

I can book it on Marriott.com and see its rate listed directly next to properties that have no resort fee, and there is no notation that the Westin has a resort fee. I'm shown a rate on the front page that simply does not exist at all. For tonight, the search result says $370. The reality is that it's $400, at a minimum.

This is fraud. Purposeful fraud, and the hotels know exactly what they are doing. Nobody's ever answered the question: what would be a non-fraud, legitimate reason for these kinds of fees to exist? There is none.

If you want to build a straw man about government taxes, go for it. I'd actually be quite happy to see all the taxes and fees in the original rate. But I recognize that this is harder to do, and I recognize that there is no ill intent on the part of Marriott by showing the taxes later in the booking process. But hey, if you want to lead that charge, go for it...

I remember posting somewhere a bit of a facetious example - why not make the room rate close to zero and charge a high resort fee? Someone responded: that's exactly what they do in Vegas. The resort fee is often greater than the posted room rate! It what world do people see this as fair, reasonable, just, and with any kind of purpose other than deception?
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Old Jul 13, 2019, 9:27 am
  #96  
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Originally Posted by Flying for Fun
Not at all! You are missing my point. If someone is shocked to learn about a resort fee at check-out then they haven't done their homework. Full stop! It isn't hidden. Full stop!
I fear we are talking at cross purposes here. I am simply explaining to you why this practice is illegal in many countries and why even in the US a similar practice is illegal for airlines in the US. It is self-evidently impossible to "do one's homework" on 100 hotels when looking for choosing one at the right price point, which is why very few people ever complain that governments enforce price transparency. As I have noted before, market transparency is one of the basic foundations of classical economic theory of a free market, and so even people generally dismissive of any form of consumer protection should be in favour of this one.
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Old Jul 13, 2019, 9:39 am
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Unless a hotel is situated in a jurisdiction that doesn’t charge local taxes, I have never seen a search result where the indicated hotel rate is the final amount I will be asked to pay at check-out. Isn’t that fraud as well?
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Old Jul 13, 2019, 9:42 am
  #98  
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Originally Posted by MePlatPremier
Unless a hotel is situated in a jurisdiction that doesn’t charge local taxes, I have never seen a search result where the indicated hotel rate is the final amount I will be asked to pay at check-out. Isn’t that fraud as well?
It's unfortunately accepted practice in North America to show prices exclusive of taxes for pretty much everything. In Europe, Australia, and Asia, all prices will generally be shown including taxes.

Originally Posted by pinniped
I remember posting somewhere a bit of a facetious example - why not make the room rate close to zero and charge a high resort fee? Someone responded: that's exactly what they do in Vegas.
The entire city of Las Vegas is basd on corruption and deception.
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Old Jul 13, 2019, 9:47 am
  #99  
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Originally Posted by MePlatPremier
Unless a hotel is situated in a jurisdiction that doesn’t charge local taxes, I have never seen a search result where the indicated hotel rate is the final amount I will be asked to pay at check-out. Isn’t that fraud as well?
That’s why this isn’t allowed in most developed countries either. Having said that, it’s obviously much less important than resort fees from a price discovery perspective as taxes tend to impact all rooms equally (or at least proportionally). The customer would still see the accurate relative pricing of their choice of rooms instead of the deception they will see now.
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Old Jul 13, 2019, 9:49 am
  #100  
 
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Originally Posted by mahasamatman
It's unfortunately accepted practice in North America to show prices exclusive of taxes for pretty much everything. In Europe, Australia, and Asia, all prices will generally be shown including taxes.
Local municipal taxes (the so-called tourist taxes) are almost always never included in the rate and in several European countries (Spain and, not as often, the UK) even the VAT is usually not included. And in Asia it is not uncommon for the 10% service charge to be missing from the shown rate.
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Old Jul 13, 2019, 9:50 am
  #101  
 
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duplicated
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Old Jul 13, 2019, 10:25 am
  #102  
 
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Originally Posted by pinniped
I can book the Westin New York Times Square in a major corporate travel portal and *never* see that it has a $30 resort fee until I'm receiving an email receipt after the stay is over.

I can book it on Marriott.com and see its rate listed directly next to properties that have no resort fee, and there is no notation that the Westin has a resort fee. I'm shown a rate on the front page that simply does not exist at all. For tonight, the search result says $370. The reality is that it's $400, at a minimum.

One-Click, Destination Charge disclosed. In this case it includes a $30 F&B credit.


Breakfast rate on Booking.com. $439 + $102.68 taxes & charges.

Originally Posted by pinniped
This is fraud. Purposeful fraud, and the hotels know exactly what they are doing.



Originally Posted by pinniped
​​​​​​Nobody's ever answered the question: what would be a non-fraud, legitimate reason for these kinds of fees to exist? There is none.
Hotels don't pay commission on them. Would you rather your $370 Westin in Manhattan show a rate of $420? It won't be $400 because prices will increase as will taxes on higher room rate.


Originally Posted by pinniped
​​​​​​If you want to build a straw man about government taxes, go for it. I'd actually be quite happy to see all the taxes and fees in the original rate. But I recognize that this is harder to do, and I recognize that there is no ill intent on the part of Marriott by showing the taxes later in the booking process. But hey, if you want to lead that charge, go for it...
Seriously? Why is it harder to do? For Marriott it is just a matter of calculating the taxes and adding it to the room rate on the front page rather than listing them at check-out. Booking.com already does it and shows the additional taxes and charges below the rate. In the case of the Westin example the $102.68 additional taxes and charges includes the resort fee which is disclosed before purchase. If booking.com added the fees and charges to the room rate you would have an all-inclusive price. It is actually more difficult with resort fees. Percentage based resort fees can't be determined until a room rate is selected.

I am all for a flag that the property listed in the front page on Marriott charges a resort fee. An optional filter to remove those properties could be implemented too.

Millions of airfares are changing daily yet when I query a fare the price I see includes all taxes and other fees. It isn't uncommon to have a dozen or more charges included in the final price. It isn't difficult at all.

Originally Posted by pinniped
I remember posting somewhere a bit of a facetious example - why not make the room rate close to zero and charge a high resort fee? Someone responded: that's exactly what they do in Vegas. The resort fee is often greater than the posted room rate! It what world do people see this as fair, reasonable, just, and with any kind of purpose other than deception?
If a property is advertising $10 nightly rates for a 5-star hotel you know/should know that the rate is below market. If travel websites were only earning commissions on a $10 room rate they would be dropping them like hot potatoes.

Vegas is a totally different market where supply and demand can see a room rate swing from $40 to $600 or more. The resort fee included in the taxes and charges total below the room rate is disclosed on booking.com on the front page, how is that deceptive? Do you need someone to add the two together for you?




James
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Old Jul 13, 2019, 10:46 am
  #103  
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Originally Posted by Flying for Fun
One-Click, Destination Charge disclosed. In this case it includes a $30 F&B credit.
Irrelevant to the post you replied to. Your example shows either the Marriott app or some other random booking app, not the "major corporate travel portal" that the OP was referring to.

Originally Posted by Flying for Fun
Millions of airfares are changing daily yet when I query a fare the price I see includes all taxes and other fees. It isn't uncommon to have a dozen or more charges included in the final price.
It didn't used to be that way until the laws were changed. Similar laws should apply to hotels. There is absolutely no reason to allow deceptive advertising and search manipulation.
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Old Jul 13, 2019, 10:59 am
  #104  
 
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Originally Posted by EuropeanPete


That’s why this isn’t allowed in most developed countries either. Having said that, it’s obviously much less important than resort fees from a price discovery perspective as taxes tend to impact all rooms equally (or at least proportionally). The customer would still see the accurate relative pricing of their choice of rooms instead of the deception they will see now.
How is it that a flat rate local tourist tax (EUR 10 per person/night in VCE or EUR 4.50 person/night in PAR) “tend[s] to impact all rooms equally or at least proportionally” and doesn’t impair the ability for the customer to “see the accurate relative pricing of their choice of rooms” but a flat resort fee (say USD 20 per room/night) doesn’t have the same effect?
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Old Jul 13, 2019, 11:06 am
  #105  
 
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Originally Posted by mahasamatman
Irrelevant to the post you replied to. Your example shows either the Marriott app or some other random booking app, not the "major corporate travel portal" that the OP was referring to.
That is indeed an issue that OP should raise with his/her corporate travel portal, not with Marriott. It appears the travel portal is the one perpetrating the fraud on consumers by hiding the resort fees that Marriott and all other OTAs clearly disclose.
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