resort fee

In the United States, resort fees have been a contentious practice. Currently, hotel resort fees can be viewed as illegal based on existing state consumer protection laws.

Numerous bodies have authority on this issue in the United States, including the U.S. Congress, state legislatures, the Federal Trade Commission, and the National Association of Attorneys General. To date, 50 attorneys general have opened an investigation into hotel resort fees.{{Cite web|last=Baskas|first=Harriet|date=2020-02-09|title=Travelers are getting help in a fight against hotel amenity fees|url=https://www.cnbc.com/2020/02/07/resort-fees-being-addressed-at-the-federal-level-helping-travelers.html|access-date=2020-09-19|website=CNBC|language=en}} Marriott was issued a subpoena on June 6, 2017, by the Attorney General of Washington, D.C., regarding their non-cooperation in the investigation, as the hospitality industry continues to stall any legislative solution to the issue.{{Cite web|title=Marriott Petition to Enforce Subpoena |url=https://hotellaw.jmbm.com/files/2017/10/DC-v-Marriott-petition-to-enforce-subpoena.pdf|access-date=September 19, 2020|website=Hotel Law}} 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. The FTC released its proposed rule on junk fees{{cite news |last1=Popa |first1=Rachel |last2=Schaller |first2=Jennifer |title=FTC Junk Fee Ban Proposed Rule Released |url=https://www.natlawreview.com/article/ftc-junk-fee-ban-proposed-rule-released |access-date=11 October 2023 |work=National Law Review}} on October 11, 2023, and in the [https://www.ftc.gov/news-events/news/press-releases/2023/10/ftc-proposes-rule-ban-junk-fees FTC's press release] it specifically highlighted hotel booking fees and resort fees.

In 1997, some resort hotels began to charge a mandatory resort fee, regardless of which facilities were used by guests.{{Cite web |url=http://mashable.com/2014/08/25/hotels-fees/ |title=Hotels are making record profits from extra fees on stuff you don't use|website=Mashable|date=25 August 2014 |agency=Associated Press|access-date=2016-05-22}} Advertising a room without including the resort fee in the price enables the hotel to advertise a lower room rate than the actual price of the room.

Resort fees were previously found just in tourist locations at actual resorts. Still, they are common throughout the United States in exclusive resort destinations and at two-star hotels in American cities. The fees are usually seen as a nuisance and a scam by travelers.{{Cite news |url=https://www.frommers.com/deals/hotels/how-to-get-out-of-paying-a-hotels-resort-feeit-can-be-done|title=How to Get Out of Paying a Hotel's Resort Fee—It Can Be Done!|last=Shallcross|first=Juliana|work=Frommer's|access-date=May 13, 2018}}{{Cite web|url=http://www.chicagotribune.com/lifestyles/travel/ct-mandatory-resort-fees-on-the-rise-20170728-story.html|title=Mandatory resort fees are on the rise - again|last=Elliott|first=Christopher|website=The Chicago Tribune|date=28 July 2017 |access-date=May 13, 2018}} They also affect international tourists who are unfamiliar with the breakdown of a US hotel bill and may not speak English.

Resort fees are most commonly charged in tourist areas, where there is collusion, with all hotels deciding to charge such fees. Currently, resort fees apply to almost all 62,000 rooms on the Las Vegas Strip.{{Cite web |url=http://killresortfees.com/vegas |title=VEGAS |website=Kill Resort Fees|access-date=2016-05-22}} Resort fees, along with the recent introduction parking charges (neither of which are typically charged at the numerous alternative gaming locations in the United States), are believed to be a significant cause of a reduction in tourism to Las Vegas.{{Cite news|url=http://www.latimes.com/travel/lasvegas/la-tr-las-vegas-fees-may-mean-fewer-visitors-20180501-story.html|title=Fewer people are visiting Las Vegas. One insider thinks hotel resort and parking fees are to blame|last=Jones|first=Jay|date=May 2, 2018|work=The Los Angeles Times|access-date=May 13, 2018}}

Resort fees may also be charged by budget hotels. For example, the Days Inn in Miami Beach and the Super 8 in Las Vegas are two-star hotels that charge resort fees.{{Cite web |url=http://www.daysinn.com/hotels/florida/miami-beach/days-inn-and-suites-miami-north-beach-oceanfront/hotel-overview|title=Days Inn & Suites Miami/North Beach Oceanfront {{!}} Miami Beach, FL 33141 Hotel|website=daysinn.com|access-date=2016-05-22}} Econo Lodges around Orlando have begun to charge resort fees.

The average resort fee in the United States is $42.41, about 11% of the overall cost to stay at the hotel each night.{{Cite web |last=Goldstein |first=Michael |title=Biden Takes On Hotel Industry, Calls Resort Fees 'Junk' |url=https://www.forbes.com/sites/michaelgoldstein/2023/02/21/did-president-biden-just-take-on-the-hotel-industry-over-resort-fees/ |access-date=2023-10-26 |website=Forbes |language=en}} This is a nightly charge on top of the advertised room rate.

New York City has seen a surge in hotel resort fees.{{Cite news |url=https://www.wsj.com/articles/resort-fees-are-no-longer-only-for-resorts-1506078000 |title='Resort' Fees Are No Longer Only for Resorts |last=Kirkham|first=Chris|date=September 22, 2017 |work=The Wall Street Journal|access-date=May 13, 2018}} In New York City, the fees are often called destination fees, facility fees or amenity fees.{{Cite news |url=https://onemileatatime.boardingarea.com/2018/02/04/grand-hyatt-new-york-destination-fee/|title=The Grand Hyatt New York Has A New $25 Destination Fee |last=Schlappig |first=Ben |date=February 4, 2018|work=One Mile At A Time|access-date=May 13, 2018}}{{Cite web|url=https://warwickhotels.com/new-york/services-and-amenities/urban-retreat-fee/|title=Facility Fee - The Warwick|website=The Warwick}} There were 15 hotels in New York City with resort fees in 2016. In 2018 there were 84.{{Cite web|url=http://killresortfees.com/newyorkcity/|title=Kill Resort Fees - New York City|website=Kill Resort Fees}} By 2020, there were over 125.

Consumer advocates describe the fee as paying a second hidden room rate.{{Cite web|url=http://killresortfees.com/|title=KILL RESORT FEES|website=Kill Resort Fees|access-date=2016-05-22}} The average resort fee in 2015 was $24.93 per day ({{Inflation|US|24.93|2015|fmt=eq}}).{{Cite web |last=Hucks |first=David |date=2017-01-11|title=Hidden Resort Fees Hurt Tourism – Promote Corruption |url=https://www.myrtlebeachsc.com/hidden-resort-fees-hurt-tourism-promote-corruption/|access-date=2017-12-12}}{{Cite news|url=https://www.reuters.com/article/us-travel-hotels-resortfees-idUSKCN0UQ1MX20160112|title=Hotel travelers gripe as resort fees rise|date=2016-01-12|newspaper=Reuters|access-date=2016-05-22}} It can be more than the advertised cost of the room.{{Cite web|last=Richberg|first=Kevin|date=2015-09-01|title=Hotel Absurd: When Your Resort Fee Costs More Than Your Room|url=http://www.huffingtonpost.com/kevin-richberg/hotel-absurd-what-to-do-w_b_8068212.html|website=Huffington Post|access-date=2017-12-12}} There is no limit to what the resort fee can be. Two hotels in Florida have resort fees of over $100 per day.{{Cite web|url=http://fortune.com/2015/05/06/resorts-fees/|title=10 luxury resorts with crazy high fees|date=2015-05-06|website=Fortune|access-date=2016-05-22}} Many hotels in Las Vegas advertise room rates that are lower than the resort fee, causing the total price to be more than double the advertised price.{{Cite news |url=https://www.usatoday.com/story/travel/hotels/2018/03/19/las-vegas-hotel-resort-fees/436867002/|title=Las Vegas resort fees: How a $25 room becomes a $65 room|work=USA TODAY|access-date=2018-05-13|language=en}}{{Cite web |url=http://www.latimes.com/travel/lasvegas/la-tr-las-vegas-caesars-increases-resort-fee-20180204-story.html|title=Las Vegas hotels have raised resort fees. On some nights, expect to pay more in fees than the cost of the room.|last=Jones|first=Jay|website=Los Angeles Times|date=5 February 2018 |access-date=2018-05-13}}

The practice is widely known as drip pricing, particularly in consumer rights contexts.{{Cite press release|url=https://www.ftc.gov/news-events/press-releases/2012/11/ftc-warns-hotel-operators-price-quotes-exclude-resort-fees-other|title=FTC Warns Hotel Operators that Price Quotes that Exclude 'Resort Fees' and Other Mandatory Surcharges May Be Deceptive|publisher=Federal Trade Commission|access-date=2016-05-22}} One price is advertised to attract customers, but when a customer checks in, there are then mandatory fees, taxes, and other charges that incrementally drip beyond the price initially advertised.{{Cite news|url=https://www.ftc.gov/news-events/press-releases/2012/11/ftc-warns-hotel-operators-price-quotes-exclude-resort-fees-other|title=FTC Warns Hotel Operators that Price Quotes that Exclude 'Resort Fees' and Other Mandatory Surcharges May Be Deceptive|date=2012-11-28|work=Federal Trade Commission|access-date=2018-05-13|language=en}}

Consumers have criticized resort fees for not being fairly disclosed prior to booking accommodation.{{Cite web |title=U.S. Lodging Industry Fees and Surcharges Forecast to Increase to a New Record Level in 2015 – $2.47 Billion |url=http://www.scps.nyu.edu/about/newsroom/news/2015/u_s_lodging_industry.html |access-date=2016-05-22 |website=scps.nyu.edu}} Consumer advocates argue that hotels lie when they claim the fee pays for any services.

Katherine Lugar, former president and chief executive officer of the American Hotel and Lodging Association, said, "throughout the booking process, hotels are transparent about costs, fees and taxes.” That assertion has been challenged by consumer advocates. 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. Charlie Leocha, president of Travelers United, said, "The charging of mandatory resort fees by hotels results in a misrepresentation of the true price of the hotel room."{{Cite news|url=https://www.washingtonpost.com/lifestyle/travel/is-the-ftc-doing-enough-to-stop-resort-fees/2015/07/09/df8e8a5a-2401-11e5-b72c-2b7d516e1e0e_story.html|title=Is the FTC doing enough to stop those mysterious hotel 'resort fees'?|last=Elliott |first=Christopher |date=2015-07-09|newspaper=The Washington Post|language=en-US|issn=0190-8286|access-date=2016-05-22}}

Hotels often try to hide the fee as a tax. A resort fee is not a tax. The Arizona Grand Resort & Spa listed its resort fee as a tax.{{Cite web |url=https://res.windsurfercrs.com/ibe/index.aspx?propertyID=13820&nono=1&_ga=2.159754555.700105045.1526254895-1929178016.1526254895|title=Arizona Grand Resort & Spa|website=Arizona Grand Resort & Spa|access-date=May 13, 2018}} The Life Hotel in New York City lists their fee as an "NYC mandatory City Hotel Fee."{{Cite web|url=https://lifehotel.com/|title=The Life Hotel|website=The Life Hotel|access-date=May 13, 2018}}

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. A hotel could be anywhere from $10 to $50 more expensive per night, but it is not listed with the advertised price.{{Cite web |url=https://www.expedia.com/OpaqueResortFees |title=Expedia Unpublished Rate Hotel: Resort Fees |website=expedia.com|access-date=2016-05-22}}

A Priceline spokeswoman, Flavie Lemarchand-Wood, said the practice of tacking added fees onto the advertised price after a hotel is selected is not deceptive: "We are compliant in disclosing the fees prior to purchase. It is very important [for the consumer] to read everything on the page". Expedia, Priceline and Hotel Tonight do not take a commission from the resort fee. These online booking companies have no incentive to publish the resort fee. The hotel takes the entire resort fee. These companies are further disincentivized since if one site begins to add the resort fee to the advertised rate, it will look like the price on that site is higher and consumers would go to a competing online booking site.

Consumer groups such as Travelers United and Kill Resort Fees contend if a hotel charges a mandatory fee, it should be included in the nightly room rate. Hotel rating systems, such as AAA, have deducted points from a hotel being reviewed if they charge resort fees.{{Cite web|url=http://newsroom.aaa.com/2012/07/new-aaa-hotel-rating-guidelines-accommodate-member-expectations-for-resort-and-wi-fi-fees/|title=New AAA Hotel Rating Guidelines Accommodate Member Expectations for Resort and Wi-Fi Fees|date=2012-07-31|website=AAA NewsRoom|language=en-US|access-date=2016-05-21}} AAA has said resort fees are a major annoyance of travelers.{{Cite web |url=https://twitter.com/lissapoirot/status/733335546962051074?lang=en|title=Lissa Poirot on Twitter |website=Twitter|access-date=2016-05-21}} Frommer's travel guides have come out with numerous articles against hotel resort fees.{{Cite news|url=https://www.frommers.com/blogs/arthur-frommer-online/blog_posts/resort-fees-are-a-tax-dodge-why-they-re-destructive-for-us-all|title=Resort Fees Are a Tax Dodge: Why They're Destructive for Us All|last=Cochran|first=Jason|date=February 21, 2018|work=Frommer's|access-date=May 13, 2018}}

The major benefit to the hotels is the profit, while still being able to show 'reasonable' room prices to the public. Resort fees brought in $2.47 billion to the hotel industry in 2015. MGM Resorts International stated that, for Las Vegas hotel rooms in 2011, "Our RevPAR (revenue per available room) in the first quarter was up 16%, including resort fees. Excluding resort fees, REVPAR was up 11% in the quarter year-over-year."{{cite web|title=MGM Resorts International Q1 2011 Earnings Call Transcript|date=2011-05-04|url=http://www.morningstar.com/earnings/PrintTranscript.aspx?id=25423704|website=morningstar.com|archive-url=https://web.archive.org/web/20120320095351/http://www.morningstar.com/earnings/PrintTranscript.aspx?id=25423704|archive-date=2012-03-20|access-date=2017-12-12}}

Online hotel search and booking tools like Expedia, Travelocity and Hotel Tonight take a percentage of a reservation and then pass the reservation on to the hotel.{{Cite web |url=https://skift.com/2015/02/19/what-expedia-and-priceline-growth-means-to-an-independent-hotel/ |title=What Expedia and Priceline Growth Means to an Independent Hotel|date=2015-02-19 |website=Skift|access-date=2016-05-21}} A hotel loses a certain percentage from every reservation made on one of the sites. Hotels that charge resort fees but are listed on these hotel search and booking sites list only their advertised rate and not their resort fee. That is because the hotel booking site takes a percentage of that advertised rate. When the hotel collects the resort fee at check in, separately from the rate purchased for online, the hotel collects 100% of that charge.

Resort fees also affect travel agents.{{Cite news |url=http://www.travelmarketreport.com/articles/As-Resort-Fees-Increase-Travel-Agents-Talk-Tactics|title=As Resort Fees Increase, Travel Agents Talk Tactics |last=Rosen |first=Cheryl |date=February 22, 2018|work=Travel Market Report|access-date=May 13, 2018}} Travel agents can earn commission on the advertised rate of the hotel and do not collect a percentage of taxes or fees. Furthermore, travel agencies must legally know what the resort fee for each hotel is so that they can properly pass it on to their clients.{{Cite news|url=http://www.travelweekly.com/Mark-Pestronk/When-and-where-agents-need-to-disclose-resort-fees|title=Resort fees: When and where agents need to disclose them |last=Pestronk|first=Mark|date=February 3, 2016|work=Travel Weekly|access-date=May 13, 2018}} Failure to do so could result in a lawsuit to their agency. Individual travel agents have found it difficult to keep up with changing hotel resort fees.{{Cite web |url=http://www.travelweekly.com/Mark-Pestronk/When-and-where-agents-need-to-disclose-resort-fees|title=Resort fees: When and where agents need to disclose them: Travel Weekly |website=travelweekly.com|access-date=2016-05-22}} 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.{{Cite web|date=2019-10-15|title=Travel Agency Group ASTA Aims to Shield Hotel Guests From Resort Fee Pain|url=https://skift.com/2019/10/15/travel-agency-group-asta-aims-to-shield-hotel-guests-from-resort-fee-pain/|access-date=2020-09-19|website=Skift|language=en-US}}

Hotels also benefit by offering a free room that is not free. Hotels and resorts also often collect resort fees from guests who are paying for their stay with loyalty points, since the resort fee is categorized a mandatory charge for bundled services as opposed to part of the room rate.{{Cite web |url=https://www.forbes.com/sites/clairetsosie/2018/09/28/how-to-keep-sneaky-fees-from-derailing-your-free-travel/#31ff79c11946|title=How To Keep Sneaky Fees From Derailing Your 'Free' Travel |website=Forbes|access-date=2018-10-28}} In gambling locations, rooms are often comped for guests who are frequent gamblers. These hotels may offer a "comped" room but still charge a resort fee so the room is not complimentary at all.{{Cite web|title=What Casinos Charge Resort Fees on Comped Rooms?|url=https://www.lasvegasadvisor.com/question/resort-fees-comped-rooms/|access-date=2020-09-19|website=Las Vegas Advisor|language=en-US}}

The American Hotel and Lodging Association has stated that the resort fee provides many benefits to consumers.{{cite web|title=Resort Fees Overview |url=https://www.ahla.com/issues/resort-fees|publisher=American Hotel and Lodging Association|access-date=February 14, 2017}} Hotels say that customers like many features and amenities of the hotel to be included in the resort fee to avoid nickel and diming,{{Cite news|url=https://www.wxyz.com/money/consumer/dont-waste-your-money/watch-out-for-resort-fees-when-you-book-your-next-hotel-stay|title=Watch out for resort fees when you book your next hotel stay|date=December 21, 2017|work=ABC 7 Detroit|access-date=May 13, 2018}} but there is no proof that any services are included in the fees, which leads many consumers to deem it to be dishonest pricing.{{Cite news|url=https://www.hotelmanagement.net/dishonest-fees-will-lead-to-future-failure|title=Hotel and resort fees are driving a wedge between guests and properties|last=Haussman|first=Glenn|date=May 16, 2016|work=Hotel Management|access-date=May 13, 2018}}

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. They don’t feel nickeled and dimed."{{Cite web|last=Segal|first=David|date=2011-09-24|title=Now You Don't See Extra Fees, Now You Do|department=Your Money|website=New York Times|url=https://www.nytimes.com/2011/09/25/your-money/hidden-fees-in-travel-deals-revisited.html|access-date=2017-12-12}}

The American Hotel and Lodging Association said that resort fees pay for a range of hotel amenities, such as pool use, gym access, towel services, Wi-Fi, newspapers, shuttle service, daily parking.{{Cite web|url=https://skift.com/2016/01/13/resort-fees-are-on-the-rise-and-consumers-arent-happy/|title=Resort Fees Are on the Rise and Consumers Aren't Happy|date=2016-01-13|website=Skift|access-date=2016-05-22}} They state that the resort fee is a payment for a group of services. This is the hotel taking advantage of its customers, because it will charge the fee even if the guest does not want any of those services. There is no way to opt out of a supposedly optional fee-for-services arrangement.

Consumer advocates such as the National Consumers League{{Cite web|last=Young|first=Brian|date=October 2016|title=What's wrong with hotel resort fees?|url=http://www.nclnet.org/resort_fees|publisher=National Consumers League|access-date=2017-12-12}} and Travelers United{{Cite web|url=http://hotelfees.travelersunited.org/|title=End Hotel and Resort Fees –|website=hotelfees.travelersunited.org|access-date=2016-05-22}} have stated that since it is a mandatory fee, it is not an exchange of service. A guest could decline all of the services allegedly offered by the resort fee and still be forced to pay the resort fee. The advocates state that there is no exchange of service. It is simply an additional amount that the hotel collects, on top of the advertised room rate.

Most hotels tax the resort fee at the hotel occupancy tax rate. This is a tax rate reserved for hotel room rates. Services are taxed at the sales tax rate in the United States. The hotel occupancy tax is higher than the sales tax rate. Consumer advocates argue this shows that the hotel resort fee is considered part of the room rate for the hotel and for tax purposes, not an exchange of service.{{Cite web |url=http://thecapitolforum.cmail19.com/t/ViewEmail/j/FC4EBD0280DB1E6A2540EF23F30FEDED/60089AD0AA3F39B520B193FBA00ED1DB|title=Marriott: Multi-State Investigation into Company's Use of Resort Fees; A Closer Look at Regulatory Risk Associated with Resort Fees |website=thecapitolforum.cmail19.com|access-date=2017-11-24}} A direct exchange of service, such as a hotel charge of bringing an extra bed to the room, would always be taxed at sales tax. A resort fee is normally not taxed as an exchange of service, but as a second room rate.{{Cite web|url=https://www.travelersunited.org/hotel-fees/new-york-city-hotel-resort-fees/|title=New York City Hotel Resort Fees|last=Wolfe|first=Lauren|date=August 11, 2017|website=Travelers United|access-date=May 13, 2018}}{{Cite news|url=https://www.eturbonews.com/81398/tax-evasion-hawaiian-hotels-and-resorts-style|title=Tax evasion: Hawaiian hotels and resorts style?|date=January 8, 2014|work=eTurbo News|access-date=May 13, 2018}}

Since resort fees are not included in the advertised room rates, the fee can be taxed differently from the regular room rates. Resort fees in Nevada are treated and taxed as a hotel room at hotel occupancy tax. Both hotel rooms and resort fees in Nevada are taxed at 13.38%.{{Cite news|url=https://www.usatoday.com/story/travel/nation-now/2017/03/03/caesars-mgm-up-resort-fees-las-vegas-strip/98701148/|title=Caesars, MGM raise resort fees on the Las Vegas Strip|last=Curtis|first=Anthony|date=March 3, 2017|work=USA Today|access-date=May 13, 2018}}{{Cite news|url=https://lasvegassun.com/news/2016/aug/01/chasing-the-room-tax-percentage-tacked-on-to-touri/|title=Chasing the room tax: Percentage tacked onto tourists' bills has made enduring impact on valley|last=Morris|first=J.D.|date=August 1, 2016|work=Las Vegas Sun|access-date=May 13, 2018}} Resort fees at many hotels in New York are taxed at 8.875% instead of the hotel occupancy tax of 14.75%. There is a 5.875% tax loss for New York City per resort fee per room per night.{{Cite web|url=http://www.rownyc.com/|title=Times Square Hotel - NYC Hotel - Row NYC|website=Row NYC Hotel|language=en-US|access-date=2016-05-22}} Consumer advocates estimate that hotel resort fees in New York City cause $10 million of lost tax revenue annually.{{Cite web|url=http://killresortfees.com/newyorkcity/|title=Kill Resort Fees - New York City|access-date=May 13, 2018}}

There has been an ongoing 50 state Attorneys General investigation into hotel resort fees for many years.{{Cite web |title=AG Racine Sues Marriott for Charging Deceptive Resort Fees and Misleading Tens of Thousands of District Consumers |url=https://oag.dc.gov/release/ag-racine-sues-marriott-charging-deceptive-resort |access-date=2022-10-27 |website=oag.dc.gov}}{{Cite web |last=Schulz |first=Bailey |title=Think resort fees are too high? A lawsuit claims the fees made Marriott tens of millions. |url=https://www.usatoday.com/story/travel/hotels/2021/10/19/marriott-hotel-resort-fees-lawsuit-dc-attorney-general/8527991002/ |access-date=2022-10-27 |website=USA TODAY |language=en-US}} Marriott was issued a subpoena on June 6, 2017, by the Attorney General of Washington, D.C., regarding their non-cooperation in the investigation.

In July 2019 the Attorney General of Washington, D.C., sued Marriott arguing that hotel resort fees violate Washington, DC's Consumer Protection Procedure's Act.{{Cite web|title=AG Racine Sues Marriott for Charging Deceptive Resort Fees and Misleading Tens of Thousands of District Consumers|url=https://oag.dc.gov/release/ag-racine-sues-marriott-charging-deceptive-resort|access-date=2020-09-19|website=oag.dc.gov}}{{cite news |title=Register |url=https://www.bizjournals.com/washington/news/2019/07/09/marriott-faces-resort-fee-lawsuit-from-d-c.html |website=bizjournals.com |access-date=26 August 2023 |language=en |url-access=limited}}{{Cite web|title=Marriott Can't Escape DC's 'Deceptive' Resort Fee Suit - Law360 |url=https://www.law360.com/articles/1230977/marriott-can-t-escape-dc-s-deceptive-resort-fee-suit |access-date=2020-09-19 |website=law360.com|language=en}}

In July 2019 the Attorney General of Nebraska sued Hilton arguing that hotel resort fees violate Nebraska's Consumer Protection Act and Nebraska's Uniform Deceptive Trade Practices Act.{{Cite web|title=AG Peterson Sues Hilton |url=https://ago.nebraska.gov/sites/ago.nebraska.gov/files/doc/2019.07.24_Hilton%20Dopco%20Inc._Amended%20Complaint.pdf |access-date=September 19, 2020|website=AG Peterson Sues Hilton}}{{Cite web |title=Nebraska Attorney General sues Hilton hotels for false pricing|url=https://www.wowt.com/content/news/Nebraska-Attorney-General-sues-Hilton-hotels-for-false-pricing--513114791.html|access-date=2020-09-19 |website=wowt.com|date=23 July 2019 }}{{Cite web|title=Nebraska attorney general sues Hilton over resort fees |url=https://www.hotelmanagement.net/legal/nebraska-attorney-general-sues-hilton-over-resort-fees|access-date=2020-09-19 |website=Hotel Management |date=25 July 2019 |language=en}}{{Cite web |date=2019-07-24 |title=Nebraska Attorney General sues Hilton, claims hotel charges deceptive hidden 'resort fees' |url=https://www.foxnews.com/travel/nebraska-ag-sues-hilton-for-deceptive-hidden-resort-fees |access-date=2020-09-19 |website=Fox News |language=en-US}}

In February 2021, Travelers United sued MGM Resorts International arguing that hotel resort fees violate Washington, DC's Consumer Protection Procedures Act. They also raised the issue of resort fees being charged on "comps" and resort fees being charged in a pandemic.{{Cite web |title=End Hotel Resort Fees |url=https://www.travelersunited.org/end-hotel-resort-fees/ |access-date=2022-10-27 |website=Travelers United |language=en-US}}{{Cite web |date=2021-03-11 |title=MGM Resorts facing lawsuit over use of resort fees |url=https://www.reviewjournal.com/business/casinos-gaming/mgm-resorts-facing-lawsuit-over-use-of-resort-fees-2299475/ |access-date=2022-10-27 |website=Las Vegas Review-Journal |language=en-US}}

In November 2021, the Attorney General of Pennsylvania came to a settlement with Marriott that promises to "unmask resort fees."{{Cite web |title=Marriott promises to unmask 'resort fees' in settlement with Pennsylvania attorney general |url=https://www.post-gazette.com/business/money/2021/11/24/Marriott-hotel-resort-fees-hidden-cost-settlement-Pennsylvania-attorney-general-Josh-Shapiro/stories/202111230123 |access-date=2022-10-27 |website=Pittsburgh Post-Gazette |language=en}}{{Cite web |title=AG Shapiro's Action Requires Marriott To Disclose "Resort Fees" |url=https://www.attorneygeneral.gov/taking-action/ag-shapiros-action-requires-marriott-to-disclose-resort-fees/ |access-date=2022-10-27 |website=Pennsylvania Office of Attorney General |language=en}}{{Cite web |title=Marriott agrees to include resort fees in the room rate: Travel Weekly |url=https://www.travelweekly.com/Travel-News/Hotel-News/Marriott-settles-resort-fee-lawsuit |access-date=2022-10-27 |website=travelweekly.com |language=en}} Almost immediately after this announcement, multiple Marriott properties started to add an undisclosed "sustainability fee."{{Cite web |last1=Schlappig |first1=Ben |date=2022-01-09 |title=Ridiculous: Marriott Hotel Adds "Sustainability Fee" |url=https://onemileatatime.com/news/marriott-hotel-sustainability-fee/ |access-date=2022-10-27 |website=One Mile at a Time |language=en-US}}{{Cite web |last=Hasek |first=Glenn |title=Trying to Make Sense of Sustainability Fees |work=Green Lodging News |date=23 January 2022 |url=https://www.greenlodgingnews.com/trying-to-make-sense-of-some-marriott-hotels-sustainability-fee/ |access-date=2022-10-27 |language=en-US}}{{Cite web |date=2022-01-11 |title=Hotel chain adds unexplained 'sustainability fee' to room rates |url=https://www.independent.co.uk/travel/news-and-advice/marriott-hotels-booking-fees-sustainability-b1989933.html |access-date=2022-10-27 |website=The Independent |language=en}}

In May 2023, the Texas Attorney General filed a lawsuit against Hyatt Hotels for "violating Texas consumer protection laws by marketing hotel rooms at prices that were not available to the public as advertised." The press release stated that "Hyatt implemented this practice by charging consumers mandatory and unavoidable fees-such as resort fees, destination fees, or amenity fees-in addition to daily room rates."{{Cite web |title=Paxton Sues Hyatt Hotels for Deceptive Trade Practices Regarding the True Price of Hotel Rooms |url=https://www.texasattorneygeneral.gov/news/releases/paxton-sues-hyatt-hotels-deceptive-trade-practices-regarding-true-price-hotel-rooms |access-date=2023-10-26 |website=texasattorneygeneral.gov |language=en}}

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."{{Cite web |title=Paxton Secures Agreement with Marriott to End Hidden Hotel Fees and Ensure Transparency |url=https://www.texasattorneygeneral.gov/news/releases/paxton-secures-agreement-marriott-end-hidden-hotel-fees-and-ensure-transparency |access-date=2023-10-26 |website=texasattorneygeneral.gov |language=en}}

The Texas Attorney General sued Booking Holdings for "engaging in false, misleading, or deceptive acts and practices in violation of the Texas Deceptive Trade Practices Act." They announced the lawsuit on August 10, 2023.{{Cite web |title=Office of the Attorney General Sues Travel Reservation Site for Deceptive Trade Practices Regarding the True Price of Hotel Rooms |url=https://www.texasattorneygeneral.gov/news/releases/office-attorney-general-sues-travel-reservation-site-deceptive-trade-practices-regarding-true-price |access-date=2023-10-26 |website=texasattorneygeneral.gov |language=en}}

In August 2023, Travelers United sued Hyatt Hotels and Sonesta over their use of hotel resort fees.{{Cite web |title=Hyatt sued over use of resort fees |url=https://www.travelweekly.com/Travel-News/Hotel-News/Hyatt-sued-over-use-of-resort-fees |access-date=2023-10-26 |website=travelweekly.com |language=en}}

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."{{Cite web |title=Settlement with Choice Hotels is AG Henry's Latest Action to Quash Hidden "Resort Fees" and "Drip Pricing" for Travelers |url=https://www.attorneygeneral.gov/taking-action/settlement-with-choice-hotels-is-ag-henrys-latest-action-to-quash-hidden-resort-fees-and-drip-pricing-for-travelers/ |access-date=2023-10-26 |website=Pennsylvania Office of Attorney General |language=en}}

In September 2023, Travelers United sued Hilton Hotels over their use of hotel resort fees.{{Cite web |last=O'Neill |first=Sean |date=2023-09-21 |title=Hilton Says it Will 'Quickly' Move to Disclose Mandatory Fees |url=https://skift.com/2023/09/21/hilton-says-it-will-quickly-move-to-disclose-mandatory-fees/ |access-date=2023-10-26 |website=Skift |language=en-US}}

US President Biden targeted resort fees in the 2023 State of the Union. He stated "We're going to ban surprise resort fees that hotels charge on your bill. Those fees can cost you up to $90 a night at hotels that aren't even resorts."{{Cite web |title=Biden denounces airline and hotel fees in State of the Union speech |url=https://www.travelweekly.com/Travel-News/Government/President-Biden-State-of-the-Union-speech |access-date=2023-10-26 |website=travelweekly.com |language=en}}

The White House under Biden had been taking on junk fees as a policy issue since 2022.{{Cite web |last= |first= |date=2022-10-26 |title=The President's Initiative on Junk Fees and Related Pricing Practices |url=https://bidenwhitehouse.archives.gov/briefing-room/blog/2022/10/26/the-presidents-initiative-on-junk-fees-and-related-pricing-practices/ |access-date=2023-10-26 |website=The White House |language=en-US}} 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."

The Federal Trade Commission (FTC) is the US government organization with authority to regulate the hotel industry. On the subject of resort fees in 2012, FTC attorney Mamie Kresses said "The fees are not illegal as long as they're disclosed." What constitutes a clear disclosure, however, has been a matter of debate between the hotel industry and consumers. In 2012, FTC advised 22 hotel operators that their online rate quote totals, which did not include certain fees, may need to be updated to comply with FTC regulations.{{cite web |last=Hunter |first=Marnie |title=FTC warns hotels about 'resort fees' |url=http://www.cnn.com/2012/11/28/travel/hotels-resort-fees-warning/index.html|date=28 November 2012 |work=CNN}}

Since then the FTC has taken no legal action on resort fees. Consumer advocate Chris Elliott wrote "The FTC has failed to protect consumers from what is perhaps the most dishonest fee in the travel industry." 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.”{{Cite web|last=Martin|first=Hugo|date=2016-01-10|title=FTC chairwoman calls for legislation to tackle hidden resort fees|website=Los Angeles Times|url=http://www.latimes.com/business/la-fi-legislation-hidden-resort-fees-20160108-story.html|access-date=2016-05-21}}

FTC published a report on the harm of resort fees on January 5, 2017,{{cite news |last1=Wood |first1=Donald|title='Hidden' hotel resort fees come under fire in FTC report |url=https://www.foxnews.com/travel/hidden-hotel-resort-fees-come-under-fire-in-ftc-report|access-date=February 14, 2017|date=January 6, 2017|website=Fox News}} 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."{{cite press release|title=FTC Economic Issue Paper Examines the Impact of Disclosing Mandatory Hotel Resort Fees Separately From Room Rates|url=https://www.ftc.gov/news-events/press-releases/2017/01/ftc-economic-issue-paper-examines-impact-disclosing-mandatory|publisher=Federal Trade Commission|access-date=February 14, 2017}}

The FTC announced that it will explore a rule to crack down on junk fees (such as hotel resort fees) on October 20, 2022.{{Cite web |title=FTC Launches Rulemaking on Fee Disclosures and Practices Across Industries |url=https://www.wiley.law/alert-FTC-Launches-Rulemaking-on-Fee-Disclosures-and-Practices-Across-Industries |access-date=2022-10-27 |website=wiley.law |language=en-US}} This was announced in an advance notice of proposed rulemaking.{{Cite web |date=2022-10-20 |title=Federal Trade Commission Explores Rule Cracking Down on Junk Fees |url=https://www.ftc.gov/news-events/news/press-releases/2022/10/federal-trade-commission-explores-rule-cracking-down-junk-fees |access-date=2022-10-27 |website=Federal Trade Commission |language=en}} Six days later on October 26, 2022, FTC Chair Lina Khan stood onstage with President Biden announcing a national crackdown on junk fees such as "hidden hotel booking fees."{{Cite web |last=Kinery |first=Emma |title=White House hammers economic issues with attack on 'junk fees' two weeks out from Election Day |url=https://www.cnbc.com/2022/10/26/white-house-hammers-economic-issues-with-attack-on-junk-fees-two-weeks-out-from-election-day.html |access-date=2022-10-27 |website=CNBC |date=26 October 2022 |language=en}}{{Cite web |last=Passoth |first=Kim |title=President Biden pledges to eliminate resort fees charged by most Las Vegas Strip hotels |url=https://www.fox5vegas.com/2022/10/27/president-biden-pledges-eliminate-resort-fees-charged-by-most-las-vegas-strip-hotels/ |access-date=2022-10-27 |website=fox5vegas.com |date=27 October 2022 |language=en}}

On February 2, 2022, the Consumer Financial Protection Bureau requested public comment about how junk fees were impacting peoples financial lives.{{Cite news |last=Cowley |first=Stacy |date=2022-01-26 |title=The federal consumer bureau wants to stamp out what it calls 'junk fees.' |language=en-US |work=The New York Times |url=https://www.nytimes.com/2022/01/26/business/cfpb-junk-fees.html |access-date=2022-10-27 |issn=0362-4331}}{{Cite web |title=Americans pay billions in "junk fees" every year. Here are some of the worst. |url=https://www.cbsnews.com/news/junk-fees-overdraft-fees-banks-cfpb/ |access-date=2022-10-27 |website=CBS News |date=8 February 2022 |language=en-US}} On October 26, 2022, Director Rohit Chopra stood onstage with President Biden announcing a national crackdown on junk fees such as "hidden hotel booking fees."{{Cite web |title=Biden Promises To Crack Down on Junk Fees — How Much Do They Cost You? |url=https://www.yahoo.com/entertainment/biden-promises-crack-down-junk-163852468.html |access-date=2022-10-27 |website=yahoo.com |language=en-US}}

US Senator McCaskill introduced the “Truth in Hotel Advertising Act of 2016” in the US Senate on February 25, 2016.{{Cite web |title=Sen. McCaskill introduces bill against hidden resort fees |url=https://www.usatoday.com/story/travel/roadwarriorvoices/2016/02/25/sen-mccaskill-introduces-bill-against-hidden-resort-fees/80935922/ |access-date=2016-05-22 |website=USA TODAY}} The purpose of the bill is to "prohibit unfair and deceptive advertising of hotel room rates, and for other purposes."{{Cite web |date=25 February 2016 |title=Text - S. 2599–114th Congress (2015-2016): Truth in Hotel Advertising Act of 2016 |url=https://www.congress.gov/bill/114th-congress/senate-bill/2599/text |access-date=2017-12-12}} The bill was not voted on during the 114th Congress.

A bipartisan bill was introduced by Congressmembers Eddie Bernice Johnson and Jeff Fortenberry to the US House of Representatives on September 25, 2019.{{Cite web|date=2019-09-25|title=Representatives Johnson and Fortenberry Introduce Bipartisan Legislation to Protect Consumers From Deceptive Hotel Resort Fees|url=https://ebjohnson.house.gov/media-center/press-releases/representatives-johnson-and-fortenberry-introduce-bipartisan-legislation|access-date=2020-09-19|website=Congresswoman Eddie Bernice Johnson|language=en}} The bill was introduced by Congressmember Eddie Bernice Johnson in 2022. Congressmember Paul Gosar introduced a different bill also directed at eliminating hotel resort fees in 2022.{{Cite web |title=Representative Paul Gosar |url=https://gosar.house.gov/news/email/show.aspx?ID=2IYXTELMPVHIHCGFMBKYNTJXH4 |access-date=2022-10-27 |website=gosar.house.gov}}{{Cite web |url=https://www.congress.gov/bill/116th-congress/house-bill/4489/text?r=10&s=1 |language=en |access-date=25 August 2023 |title=Hotel Advertising Transparency Act of 2019 |website=Congress}}

On July 26, 2023, the Hotel Fees Transparency Act was introduced to the US Senate by Senator Amy Klobuchar (D-MN) and Senator Jerry Moran (R-KS).{{Cite web |date=2023-07-26 |title=Bipartisan Senate bill aims to crack down on hotel 'resort fees' |url=https://www.nbcnews.com/politics/congress/bipartisan-senate-bill-aims-crack-hotel-resort-fees-rcna96186 |access-date=2023-10-26 |website=NBC News |language=en}}

Many consumers have begun to challenge resort fees.{{Cite web |last=Elliott |first=Christopher |date=2010-05-24|title=Yes, you can fight a resort fee - and win|url=http://elliott.org/blog/yes-you-can-fight-a-resort-fee-and-win/|website=Elliott|access-date=2016-05-21}} This has been done by asking the hotel desk manager to remove the fee, by disputing the fee with the guest's credit card company, by suing the hotel in small claims court or by filing a consumer complaint with one's Attorney General.{{Cite web |url=http://killresortfees.com/dontpay|title=DON'T PAY|website=Kill Resort Fees|access-date=2016-05-21}}

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. Moreover, merchants that have a high volume of disputed charges can run afoul of credit card providers, which in egregious cases have the ability to terminate a vendor's right to accept credit cards.

Kill Resort Fees, an advocacy group working to eliminate resort fees, stated that all resort fees should be challenged. Lauren Wolfe, founder of Kill Resort Fees, said that "Resort fees are the equivalent of being charged a second room rate. No law exists protecting hotels ability to charge two room rates for one night so all of these second rates also known as resort fees should be challenged by consumers."{{Cite web|url=http://killresortfees.com/blog|title=BLOG|website=Kill Resort Fees|access-date=2016-05-22}} Wolfe advocates that consumers should file a consumer complaint with their attorney general to have their AG force the hotel to refund the customer.{{Cite news|last=Firshein|first=Sarah|date=2020-02-08|title=Help! How Do I Get Out of Resort Fees?|language=en-US|work=The New York Times|url=https://www.nytimes.com/2020/02/08/travel/resort-fees.html|access-date=2020-09-19|issn=0362-4331}}

Fifty Attorneys General began an investigation into the practice of hotel resort fees in May 2016.{{Cite news|url=https://www.nbcnews.com/nightly-news/video/47-state-attorney-generals-investigating-hotels-for-added-fees-1058319939617|title=47 State Attorney Generals Investigating Hotels for Added Fees|work=NBC News|access-date=2017-11-24|language=en}} Marriott resisted turning over documents on the investigation after many requests by the Attorneys General.{{Cite news|url=https://www.nbcwashington.com/news/local/DC-Lawsuit-Accuses-Marriott-of-Not-Cooperating-With-Resort-Fees-Investigation_Washington-DC-427545193.html|title=DC Lawsuit Accuses Marriott of Not Cooperating With Case|work=NBC4 Washington|access-date=2017-11-24|language=en}} Marriott was subpoenaed on June 7, 2017, by the District of Columbia Attorney General Karl Racine.{{Cite news|url=https://www.wsj.com/articles/resort-fees-are-no-longer-only-for-resorts-1506078000|title='Resort' Fees Are No Longer Only for Resorts|last=Kirkham|first=Chris|date=2017-09-22|work=Wall Street Journal|access-date=2017-11-24|language=en-US|issn=0099-9660}} 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"

“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."

• American Hotel and Lodging Association
• American Gaming Association{{Cite web|last=Elliott|first=Christopher|date=2016-02-26|title=This Bill Would Kill Hotel Resort Fees|url=http://www.huffingtonpost.com/entry/this-bill-would-kill-hotel-resort-fees_us_56d08524e4b01592bf4ff2e7|website=Huffington Post|access-date=2016-05-21}}

• Kill Resort Fees
• Travelers United
• National Consumers League
• Consumer Reports{{Cite news|url=https://consumerfed.org/press_release/hidden-fees-cost-consumers-billions/|title=Hidden Fees Cost Consumers Billions · Consumer Federation of America|work=Consumer Federation of America|access-date=2018-05-14|language=en-US}}
• Consumer Federation of America

European Union regulations say that mandatory fees must be included in advertised prices, making hidden resort fees illegal.{{Cite web|url=http://mashable.com/2014/12/24/hidden-hotel-fees/|title=Travel watchdog warns vacationers about resort fees hidden in the small print|last=Plautz|first=Jessica|website=Mashable|date=24 December 2014 |access-date=2016-05-22}}{{Cite news|url=https://www.independent.co.uk/travel/news-and-advice/donald-trump-turnberry-hotel-resort-fee-nightly-charge-golf-a8269836.html|title=Trump Brings Illegal US-Style 'Resort Fees' to UK For First Time|last=Calder|first=Simon|date=March 23, 2018|work=The Independent|access-date=May 13, 2018}}

{{Reflist|2}}

• {{cite web| url= https://www.lasvegasjaunt.com/resort-fees/ |title=Las Vegas Resort Fees 2025 Guide| website=lasvegasjaunt.com}}
• {{cite web| url= http://www.lasvegasdirect.com/las-vegas-hotel-resort-fees/ |title=Las Vegas Hotel Resort Fees|website=lasvegasdirect.com}}
• {{cite web| url= http://www.resortfeechecker.com/ |title=Resort Fee Checker|website=resortfeechecker.com}}

Category:Hotel terminology

Category:Fees