Congress weighs making resort fees illegal
#1
Original Poster
Join Date: Jun 2014
Posts: 290
Congress weighs making resort fees illegal
Wednesday night, Rep. Eddie Bernice Johnson (D-TX) and Rep. Jeff Fortenberry (R-NE) introduced bipartisan legislation named the “Hotel Advertising Transparency Act of 2019,” aimed at making the practice of charging resort fees illegal.
#2
FlyerTalk Evangelist
Join Date: Nov 2000
Location: Atlanta, GA, USA
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Posts: 38,151
^^ for coming up with the bill, but the messaging will be important. The right way to promote it, IMO, is by playing up the transparency and mandatory disclosures, not by saying you're making something illegal.
We've already seen this battle in airfares. The Obama administration's DOT regulation got it right, mandating all-in pricing that includes mandatory airline-imposed fees. Some airlines, especially Spirit and Frontier, still have the mandatory fees, but if they're part of the quoted price then consumers don't mind nearly as much as the bait-and-switch of being given one number but the actual price being a lot higher. Spirit would like nothing more than to advertise $9 or even $0 fares in the large type but have them ACTUALLY be $50 or so, minimum, each way after loading them up with bogus money grabs like the "Passenger Usage Fee."
Las Vegas has gotten ridiculous and it's still hard to shop for hotel rooms there because while websites are doing much better than before about disclosing fees somewhere, they're still REWARDING THE BAD ACTORS by using the pre-resort fee price to rank the hotels. So a place like Circus Circus will often show up first with a weekday price of $22/night (plus $40/night RESORT FEE!) while the Four Queens will be on the fourth page of results at $45 with no resort fee. The Four Queens is actually cheaper but loses out for not joining the race to the bottom on advertising/pricing standards. It's unfair AND encourages bad behavior if left unaddressed.
Private rentals are also often undeserving beneficiaries of the extra fee bit, in that they get unfairly ranked higher on the "bait" price that doesn't have the "property fee" added yet.
Because of the "success" of this deceptive practice in Las Vegas, I'm seeing it spread slowly to more places. It needs to be stopped. Rewarding bad actors leads to a race to the bottom (the dark side of competition) and ultimately to lots of customer distrust and cynicism. The travel industry has a long and sordid history of trying to bait people with prices that aren't what they actually pay (30 years ago in Las Vegas it was "PPDO," i.e. putting only half the room rate on the billboard and an asterisk for the "Per Person Double Occupancy" in small print). So the industry hasn't earned any benefit of the doubt here.
We've already seen this battle in airfares. The Obama administration's DOT regulation got it right, mandating all-in pricing that includes mandatory airline-imposed fees. Some airlines, especially Spirit and Frontier, still have the mandatory fees, but if they're part of the quoted price then consumers don't mind nearly as much as the bait-and-switch of being given one number but the actual price being a lot higher. Spirit would like nothing more than to advertise $9 or even $0 fares in the large type but have them ACTUALLY be $50 or so, minimum, each way after loading them up with bogus money grabs like the "Passenger Usage Fee."
Las Vegas has gotten ridiculous and it's still hard to shop for hotel rooms there because while websites are doing much better than before about disclosing fees somewhere, they're still REWARDING THE BAD ACTORS by using the pre-resort fee price to rank the hotels. So a place like Circus Circus will often show up first with a weekday price of $22/night (plus $40/night RESORT FEE!) while the Four Queens will be on the fourth page of results at $45 with no resort fee. The Four Queens is actually cheaper but loses out for not joining the race to the bottom on advertising/pricing standards. It's unfair AND encourages bad behavior if left unaddressed.
Private rentals are also often undeserving beneficiaries of the extra fee bit, in that they get unfairly ranked higher on the "bait" price that doesn't have the "property fee" added yet.
Because of the "success" of this deceptive practice in Las Vegas, I'm seeing it spread slowly to more places. It needs to be stopped. Rewarding bad actors leads to a race to the bottom (the dark side of competition) and ultimately to lots of customer distrust and cynicism. The travel industry has a long and sordid history of trying to bait people with prices that aren't what they actually pay (30 years ago in Las Vegas it was "PPDO," i.e. putting only half the room rate on the billboard and an asterisk for the "Per Person Double Occupancy" in small print). So the industry hasn't earned any benefit of the doubt here.
Last edited by RustyC; Sep 27, 2019 at 10:57 pm
#4
Join Date: Feb 2013
Location: Hilton, Hyatt House, Del Taco
Posts: 5,378
Yeah, not only the resort fees, but I wish they'd figure out a way to illegalize all hidden fees in hospitality industries.
Last month I ate at a restaurant in Seattle with over-the-water deck that charged ~$5 extra and they called it the pier maintenance fee or something.
How ridiculous is that?
I've been to quite a few restaurants with above-water decks. Never have I been charged such thing before.
They must collect ~$1k a day just from this hidden fee.
Last month I ate at a restaurant in Seattle with over-the-water deck that charged ~$5 extra and they called it the pier maintenance fee or something.
How ridiculous is that?
I've been to quite a few restaurants with above-water decks. Never have I been charged such thing before.
They must collect ~$1k a day just from this hidden fee.
#5
Join Date: Jul 2018
Posts: 159
Yeah, not only the resort fees, but I wish they'd figure out a way to illegalize all hidden fees in hospitality industries.
Last month I ate at a restaurant in Seattle with over-the-water deck that charged ~$5 extra and they called it the pier maintenance fee or something.
How ridiculous is that?
I've been to quite a few restaurants with above-water decks. Never have I been charged such thing before.
They must collect ~$1k a day just from this hidden fee.
Last month I ate at a restaurant in Seattle with over-the-water deck that charged ~$5 extra and they called it the pier maintenance fee or something.
How ridiculous is that?
I've been to quite a few restaurants with above-water decks. Never have I been charged such thing before.
They must collect ~$1k a day just from this hidden fee.
#7
FlyerTalk Evangelist
Join Date: Jul 2011
Location: RNO
Programs: AA/DL/UA
Posts: 10,775
Mandate all-inclusive pricing just like the airlines. If a hotel wants to have a $1 room rate and a bunch of fees that add another $86 for a total of $87 a night, fine. It's deceptive advertising to call it anything less than $87/night.
#8
Join Date: Dec 2010
Location: Indianapolis
Programs: Hilton-Diamond Lifetime Platinum AA UA, WN-CP, SPG Gold.
Posts: 7,377
Two sided street,
#9
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Meh - These things generate lengthy threads on social media such as FT and that's it. It will never be enacted. Just like mandatory child-seating on aircraft and legislation limiting TSA. All there for show.
#10
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Shanghai
Posts: 42,031
Why so cynical? There are many cases in which anti-consumer policies have been overhauled as a result of vocal opposition...all-in pricing for airplane tickets, 24-hour fee free cancellation, EC261, etc.
#11
Join Date: Apr 2005
Location: ORD, MKE
Programs: UA, AA, Hilton and regular member of everything else
Posts: 1,332
Yeah, these are some of the few things nearly all Amerians are united on and with enough public pressure can easily be put into place... the only thing holding it back is the will of elected officials to take it on (whether because they're too busy fighting with each other to actually care or because they're being pressured by lobbyists from the hospitality industry).
#12
Join Date: Apr 2005
Location: ORD, MKE
Programs: UA, AA, Hilton and regular member of everything else
Posts: 1,332
I still don't understand why airlines get to claim the fuel surcharge. It's something they shouldn't have had to begin with, it's a vital part of the baseline product and should be part of the base ticket price, and now fuel is a lot cheaper, but we still have the same fees. It's a huge scam and everyone has accepted it without question.
#13
Join Date: Apr 2012
Location: Canada
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I still don't understand why airlines get to claim the fuel surcharge. It's something they shouldn't have had to begin with, it's a vital part of the baseline product and should be part of the base ticket price, and now fuel is a lot cheaper, but we still have the same fees. It's a huge scam and everyone has accepted it without question.
#14
Join Date: Apr 2005
Location: ORD, MKE
Programs: UA, AA, Hilton and regular member of everything else
Posts: 1,332
I suppose, it’s not as much of an issue with all inclusive pricing. Is it a scheme to get out of paying taxes?
#15
Join Date: Aug 2005
Location: North of 90° S
Programs: B6 Mosaic, WN A-List
Posts: 565
Just state, "it was not an unparalleled experience."