Currently, hotel resort fees can be viewed as illegal based on existing state consumer protection laws.
[16] Since then the Attorneys General of DC, Nebraska, Pennsylvania and Texas have taken action against hotel resort fees.
Non-profit consumer protection group Travelers United sued MGM, Hilton, Hyatt and Sonesta.
The FTC announced a notice of proposed rule making in 2022 and US President Biden talked of hotel resort fees in his 2023 State of the Union.
Still, they are common throughout the United States in exclusive resort destinations and at two-star hotels in American cities.
For example, the Days Inn in Miami Beach and the Super 8 in Las Vegas are two-star hotels that charge resort fees.
[37] Consumers have criticized resort fees for not being fairly disclosed prior to booking accommodation.
They argue that though hotels may list a resort fee, they do so at the very end of the booking process in extremely small print.
"[42] Consumer advocates have noted that if consumers choose to book their hotel based on price-based search tools on Expedia, Priceline, or Hotel Tonight, the resort fees are left off in the initial price comparison search.
[50] Travel agents can earn commission on the advertised rate of the hotel and do not collect a percentage of taxes or fees.
[52] The American Society of Travel Advisors (ASTA) launched an advocacy campaign to support the federal bi-partisan bill to end undisclosed hotel resort fees in October 2019.
[55] The American Hotel and Lodging Association has stated that the resort fee provides many benefits to consumers.
[58] MGM Resorts International senior vice president Alan Feldman has said, "We have heard negative feedback from guests, but we’ve also heard positive feedback, from guests who are happy that they are no longer paying à la carte for different services.
[66] Consumer advocates estimate that hotel resort fees in New York City cause $10 million of lost tax revenue annually.
[77][14][78] In November 2021, the Attorney General of Pennsylvania came to a settlement with Marriott that promises to "unmask resort fees.
"[79][80][81] Almost immediately after this announcement, multiple Marriott properties started to add an undisclosed "sustainability fee.
"[85] On May 16, 2023, the Texas Attorney General announced that he had entered "into a settlement with Marriott International, Inc. ("Marriott") to ensure that the global hotel company properly discloses "resort fees" and other hidden costs to consumers in its advertisements and during the room booking process.
[88] On September 21, 2023, the Pennsylvania Attorney General announced that her office had reached a multi-state settlement with Choice Hotels International regarding the disclosure of "resort fees" and "drip pricing.
[92] On October 26, 2022, the White House released a statement stating "last month, at a meeting of the White House Competition Council, President Biden called on all agencies to reduce or eliminate hidden fees, charges, and add-ons for everything from banking services to cable and internet bills to airline and concert tickets.
These so called "junk fees" are not just an irritant - they can weaken market competition, raise costs for consumers and businesses, and hit the most vulnerable Americans the hardest.
"[92] The Federal Trade Commission (FTC) is the US government organization with authority to regulate the hotel industry.
"[36] In 2016, FTC Chairperson Ramirez wrote a letter to Congress on the subject of resort fees and said “in my view……the most efficient and effective means to mandate the type of industry-wide requirement you propose would be through legislation.”[94] FTC published a report on the harm of resort fees on January 5, 2017,[95] which concluded "that consumers are likely being harmed by the hotel industry practice of disclosing mandatory resort fees separate from posted room rates, without first disclosing the total price.
A bipartisan bill was introduced by Congressmembers Eddie Bernice Johnson and Jeff Fortenberry to the US House of Representatives on September 25, 2019.
Congressmember Paul Gosar introduced a different bill also directed at eliminating hotel resort fees in 2022.
[111] Consumer travel advocate Christopher Elliott advises anyone who was blindsided by an add-on fee to dispute the charge with their credit card company.
While the booking sites may allow small-print disclosures, some credit card companies have taken the consumer's side in these disputes and reversed the charges.
[116] The subpoena reads: "D.C. Code 1-301.89c(a) provides that the Office of the Attorney General 'shall have the authority to issue subpoenas for the production of documents and materials or for the attendance and testimony of witnesses under oath, or both, related to an investigation into unfair, deceptive, unconscionable, or fraudulent trade practices by or between a merchant or consumer, as defined in 28-3901.'
Consistent with that authority, on May 16, 2016, the District served its subpoena on Marriott"[114]Wyndham is currently facing a class action lawsuit in Pennsylvania Federal Court regarding hotel resort fees.
Luca v. Wyndham Worldwide Corp. et al., case number 2:16-cv-00746, in the U.S. District Court for the Western District of Pennsylvania deals with and Wyndham its subsidiaries are sneaking a resort fee on to its room prices without notifying consumers, causing its rooms to be advertised at deceptively low rates, according to a proposed class action filed Monday in Pennsylvania federal court.
[117] The case reads:“Defendants’ failure to adequately disclose the resort fee charge as part of the true cost of renting a hotel room is deceptive and causes consumers, including plaintiff and the class, to believe that they are paying substantially less than they actually are being charged for a room at defendants’ hotels,” according to the complaint.