Congress bill aims to eliminate ‘deceptive’ resort fees

Thursday, 03 Oct, 2019 0

The dreaded resort fee is finally getting Congress scrutiny.

Democratic Rep. Eddie Bernice Johnson and Republican Jeff Fortenberry last week tabled a bi-partisan bill called the ‘Hotel Advertising Transparency Act of 2019.’

It aims to make resort fees illegal by ensuring consumers are given the full pre-tax price of a hotel room.

It mandates disclosure of the full price before any government or state taxes.

"This summer a record number of travelers were subjected to deceptive hidden fees charged by hotels, motels, and other places of accommodation," Congresswoman Johnson said.

Johnson said these hidden fees could generate $3 billion in revenue.

The bill needs to be passed by the House Committee on Energy and Commerce before it gets a full House vote.

Nearly all state attorneys general are coordinating their own action against major hotel chains to force full disclosure of all hotel fees.

Marriott, Wyndham and Hilton have been targeted with lawsuits.

The Federal Trade Commission warned several dozen hotels and online travel firms about misleading consumers back in 2012.

Many hotels modified their pricing policy but since then the issue has increased dramatically, partly as a tactic to limit what they pay in commissions to OTAs.

"When travelers search for hotel options, they deserve to see straightforward prices," Fortenberry said.

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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