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

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

Old Apr 8, 2020, 9:58 am
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Ban resort fees as a condition of bailout $$ for hotels?

Since "resort fees" are a nearly unique feature of US hotels, banning them as a condition of bailout money for hotels could eradicate this fiscal virus.
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Old Apr 8, 2020, 10:36 am
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The chances that Treasury would condition any grant, loan or other form of support on eliminating a revenue source hovers at zero only because statisticians maintain that there can't be less than a 0% probability.

Much, much, much more likely that free upgrades, lounge access and anything not revenue-based goes away when large corporate customers figure out that it can all be negotiated away for better rates.

Don't for a minute believe that this is going to improve the creature comforts for travelers. May preserve their jobs, but it might not be the "luxury" they've been used to.
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Old Apr 8, 2020, 11:57 am
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Since this is not a Hilton-specific topic, will move to Travel Buzz

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Old Apr 8, 2020, 1:18 pm
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Similar calls are being made for airline bailouts, where people want to extract some customer concession. In this specific case, I do think that it the subject of a "resort" fee could be worthwhile for the government to consider. Unlike a fee for baggage or pre-assigned seats, a fee that applies to everyone who purchases a ticket/room should simply be bundled into the published price. The problem with resort fees is not that they are charged, but that they are hidden. Truth in advertising should require that any "separate" charge that is applied to every delivered product should be included in the price of the product when an e-commerce site is used to display the price, or when prices are quoted by the vendor.

Tying this to the bailout might be reasonable, but doing it as a standalone regulation for ANY/ALL products makes sense to me.
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Old Apr 8, 2020, 1:39 pm
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Originally Posted by xooz
Similar calls are being made for airline bailouts, where people want to extract some customer concession. In this specific case, I do think that it the subject of a "resort" fee could be worthwhile for the government to consider. Unlike a fee for baggage or pre-assigned seats, a fee that applies to everyone who purchases a ticket/room should simply be bundled into the published price. The problem with resort fees is not that they are charged, but that they are hidden. Truth in advertising should require that any "separate" charge that is applied to every delivered product should be included in the price of the product when an e-commerce site is used to display the price, or when prices are quoted by the vendor.

Tying this to the bailout might be reasonable, but doing it as a standalone regulation for ANY/ALL products makes sense to me.
I'm afraid your idea makes too much sense, although I would hate to see it implemented. I can just see it now..... want an airline ticket, here's an extra $25 charge. Want a gallon of milk, here's an extra $2 charge.
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Old Apr 8, 2020, 1:50 pm
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Originally Posted by zitsky
I'm afraid your idea makes too much sense, although I would hate to see it implemented. I can just see it now..... want an airline ticket, here's an extra $25 charge. Want a gallon of milk, here's an extra $2 charge.
If they have a known additive charge for my $200 room, such that it is $235... display that on the first (shopping) page. If there is a YQ/YR charge of $275 on top of my 50K frequent flyer points, show me now. Nothing to prevent a company from deciding how to price, just force them to make the price clear.
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Old Apr 8, 2020, 2:15 pm
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I can't see any relation between resort fees and a potential government bailout.
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Old Apr 8, 2020, 2:36 pm
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Originally Posted by jalves
I can't see any relation between resort fees and a potential government bailout.
If government is providing loans (or straight up cash infusion), then the government (ie the people of the USA) could require stipulations to the money. Like no resort fees.
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Old Apr 8, 2020, 2:41 pm
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Well, maybe they can ask the hotels "....to do us a favor though"
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Old Apr 8, 2020, 3:27 pm
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CARES Act is already signed into law.

The conditions for loans, grants & stock purchases have to relate to the financial health of the business. These don't. So, forget it and move on.
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Old Apr 8, 2020, 4:23 pm
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Force the major hoteliers to include it in their franchise agreements, as IME most resort fees are created by the individual property's owner/manager and not by the brand whose flag flies there.
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Old Apr 8, 2020, 6:24 pm
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Originally Posted by mkt
Force the major hoteliers to include it in their franchise agreements, as IME most resort fees are created by the individual property's owner/manager and not by the brand whose flag flies there.
By what authority?
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Old Apr 8, 2020, 6:45 pm
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Originally Posted by Often1
By what authority?
As part of the agreement they make to accept public funds.
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Old Apr 8, 2020, 7:04 pm
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Resort fees are deceptive advertising and should be banned for all hotels. Making this a condition of the bailout would send the message that deceptive advertising is acceptable as long as you are not accepting government support.
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Old Apr 8, 2020, 8:34 pm
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Why is it such that horse trading is needed? Why can't the U.S. Congress just pass laws that benefit their citizens that might hurt share prices briefly?
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