Hotels rival the cable companies when it comes to outrageous rates.
In many cases, they advertise rates that not only neglect taxes but mandatory fees that must be shown as part of the nightly rates.
Usually called a resort fee, these are the daily fees that cover amenities like pools, gyms, and Wi-Fi. The problem is that guests don’t have the opportunity to opt out of these fees. You may never use any of these facilities, but you cannot pay for them.
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Hidden fees are also one of President Joe Biden’s goals. This is a clever game by the president because while Republicans may disagree with him on pretty much everything else, it’s bad political eyesight to argue in favor of hidden fees that consumers generally hate.
In October, Biden spoke about hidden charges extensively, specifically hotel recalls.
“One of the main things I asked (the competition board) to bear was the unfair hidden fees known as ‘junk fees’ that take real money — real money — out of your pockets, real money out of the pockets of American families.”
“Things like, as we mentioned, sudden bank overdraft fees, excessive credit card late fees, hidden hotel reservation fees, or those huge termination fees to keep you from switching cable and internet plans to a better deal. They can.”
Now, just a few months later, Marriott International (March) – Get a free report I decided, not voluntarily, to make major changes to how prices are shown when people book rooms.
Image source: Marriott/TheStreet
How the “Hidden” Resort Fee Works
Usually, when you book a hotel room, the booking platform displays the nightly rate. If there is a mandatory resort fee above that initial number, you generally won’t see the full price until you get to the checkout screen.
In some cases, you don’t even pay the resort fee when you book and pay in advance. Sometimes you can ostensibly pay in full for your room, only to get to the hotel and find out you really didn’t pay because you have to pay this daily extra fee.
Biden addressed resort fees during his State of the Union address.
“We will ban surprise resort fees that hotels put on your bill. These fees can cost you up to $90 a night at hotels that aren’t even resorts,” Biden said in the speech.
No actual legislation has been passed to force hotels to make any changes, but Biden has boosted public awareness of the practice.
Marriott made changes the president would celebrate — but the hotel chain didn’t for charitable causes.
Marriott is moving to full price disclosure
Marriott will later this month make a major change to how it displays prices, according to a new report from View from the suite.
“The first and foremost price for a hotel that Marriott shows will be the price including resort or destination fees, so when you look on the Marriott website, you won’t be fooled into thinking the hotel is cheaper than it is, only to see a higher price revealed at checkout.”
The change will happen starting in mid-May and is expected between May 15th and 23rd. “
Marriott made the move because it legally had to. In 2021 the hotel chain settled a resort fee lawsuit brought by the state of Pennsylvania. This agreement required the company to make this change.
The website added: “All quotes must include the total price of the reservation – and must be the price displayed prominently. Call center agents are required to offer fee-inclusive prices as well.”
This change applies to Marriott Channels only. Third party websites such as those under Booking Holdings (BKNG) – Get a free report The umbrella will continue to show prices in ways that are not on par with Marriott’s new transparency standards.