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Ban resort fees as a condition of bailout $$ for hotels?

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Ban resort fees as a condition of bailout $$ for hotels?

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Old Apr 8, 2020, 11:57 pm
  #16  
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When hotels realize that pax have stopped traveling (fall out of pandemic) they may remove RFs to get their "loyal" pax back.
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Old Apr 9, 2020, 1:29 am
  #17  
 
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So as a condition of "aid to states" can the feds also ban localities from tacking on the upwards of 10% in taxes and fees at hotels that serve no real purpose except to exploit travelers to fund political pet projects, vote buying handouts, and payoff their corrupt donors?
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Old Apr 9, 2020, 8:03 am
  #18  
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Not staying at hotels with resort fees would send a stronger message than giving them a reason to increase prices elsewhere.
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Old Apr 9, 2020, 11:27 am
  #19  
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Originally Posted by mkt
As part of the agreement they make to accept public funds.
Where do you see Treasury's authority to make that a requirement under the CARES Act?

It certainly is not required by any other federal law and Congress has chosen not to act for years and the FTC has not issued rules.

Consumers, on the other hand, grumble, but pay up. Not one shred of evidence that charging those fees hurts business, so there is no business case (which would be the easiest way to end the practice).
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Old Apr 10, 2020, 8:19 am
  #20  
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No. Resort fees should be illegal, full stop, and attorneys general should vigorously prosecute anyone who attempts to impose them. Pass laws banning them outright - don't legitimize this fraud by negotiating it into a bailout.

I thought the airline bailout should have been attached with a strict passenger bill of rights and a whole bunch of restrictions on executive pay and stock buybacks. But of course, airline passengers as a group don't have the same kind of lobbyists that airlines do.
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Old Apr 10, 2020, 9:07 am
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The big hate behind fees is extra money coming out of your pocket. Know that if they "banned resort fees," that you are very unlikely to save any money. It was an (annoying) practice that stemmed from competing on advertised price as that is what consumers are looking at. Itis legal to break up the "price" and charge a fee later. I would like to see something where it is all advertised up front, the way it should be. Again, you will not be saving anything.
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Old Apr 10, 2020, 9:11 am
  #22  
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But, that is all OT from the question of what this stuff has to do with CARES Act support.

There are endless threads on the topic and the bottom line is that if the people who say they won't stay at a place which imposes a mandatory fee amounted to anything the industry cares about, the fees would be gone by tomorrow morning. But, after 10 years, the fees have spread, not contracted. So, that sort of tells you where the market is.
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Old Apr 10, 2020, 10:29 am
  #23  
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Originally Posted by Super Mario
The big hate behind fees is extra money coming out of your pocket. Know that if they "banned resort fees," that you are very unlikely to save any money. It was an (annoying) practice that stemmed from competing on advertised price as that is what consumers are looking at. Itis legal to break up the "price" and charge a fee later. I would like to see something where it is all advertised up front, the way it should be. Again, you will not be saving anything.
I'm fine with that. Hotels can charge whatever they like for a room.

The part that should be illegal is the after-the-fact fee.

The entire reason resort fees exist is to defraud guests. There is literally no other reason for them. They are designed to trick people into thinking they're paying one price, and then sticking people with another price - sometimes more than double the initial price. (See Las Vegas.) Why does a hotel offer a room for $29 and a resort fee of $40? Precisely one reason: they know the market won't actually bear $69 for their room without the fraudulent practice.

Marriott has begun to make it easier to see the fees, which is nice (I guess), but the fees should be eliminated entirely.
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Old Apr 10, 2020, 2:17 pm
  #24  
 
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Moot as it would have needed to be in the enabling legislation.
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Old May 7, 2020, 10:28 am
  #25  
 
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Although I support getting rid of resort fees...properties will simply rename their resort fee to something else, or simply increase the cost of other charges. BUT being upfront about their charges would be nice, it would help make shopping for hotel/resorts much easier (which is not in the benefit of properties)... Unfortunately hotel fees are like car rental fees that blindside you when you pay.
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Old May 7, 2020, 12:35 pm
  #26  
 
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Hotel rates, no matter where located, need to be all-in when booked in Europe and resort fees can't be charged after the fact. No reason this can't be done in the US.
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Old May 8, 2020, 6:01 am
  #27  
 
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If lawmakers (local, state, or federal) haven't thought to pass legislation prohibiting resort fees before, why would they suddenly decide to worry about those fees in the midst of a pandemic?

As much as I dislike resort fees, I don't think this is the time to address them. Nor do I think that it's something lawmakers should be concerned with right now.
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Old May 8, 2020, 7:23 am
  #28  
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There must be close to 100 threads about whether and under what circumstances resort fees ought to be chargeable. Not sure we need yet another one.

This thread was started to address the question of whether CARES Act support ought to be conditioned on eliminating these fees. It has been enacted and funds are being distributed. There is no such requirement and it is extraordinarily unlikely that Congress or anybody is going to do anything which reduces revenue or changes business practices which were legal at the time of the pandemic, anytime soon.

For what it is worth, if you book with a property, it agrees to a rate and then attempts to add a fee later, that is an issue. Always has been and is now. If the fee is disclosed by the property and you agree to pay it, you presumably know your cost and the issue is an accounting matter. If you choose to book through third-parties and they do not disclose what you want disclosed, do not use them or use them with the knowledge that you are doing business with someone who has to be checked carefully.
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Old May 9, 2020, 4:50 pm
  #29  
 
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Originally Posted by pinniped
No. Resort fees should be illegal, full stop, and attorneys general should vigorously prosecute anyone who attempts to impose them. Pass laws banning them outright - don't legitimize this fraud by negotiating it into a bailout.

I thought the airline bailout should have been attached with a strict passenger bill of rights and a whole bunch of restrictions on executive pay and stock buybacks. But of course, airline passengers as a group don't have the same kind of lobbyists that airlines do.
This.
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Old May 9, 2020, 7:21 pm
  #30  
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Well, CARES Act did not include the requirement and the chances that Congress will enact any legislation which limits existing practices to generate revenue anytime in the next 2-3 years are zero at best.
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