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New federal proposal requires hotels and rental properties to display fees


New federal proposal requires hotels and rental properties to display fees

Holidays are becoming more and more expensive and sometimes this is due to unexpected additional fees that arise when booking a hotel.

You may be charged for amenities even if you never use them during your stay!

According to data from the American Hotel and Lodging Association, the average fee is about $26 per night, but can be twice that depending on the property.

Lauren Wolfe is an avid traveler who now works with Travelers United, a national travel advocacy group.

She said she has visited more than a hundred countries around the world, but she has only experienced unexpected hotel charges while traveling in the United States.

“And I thought, this is crazy. This has to be illegal. How can we allow this in the United States?” Wolfe said.

She said her first experience with hidden resort fees was in 2016.

“When I got to the hotel, they told me I had to pay a $20 resort fee to get the room key. And I just thought, I have a document here that says I paid the full amount,” she said.

On Capitol Hill, both Democrats and Republicans are trying to make it easier for you to be aware of these allegations in advance.

The Hotel Fee Transparency Act would create a national standard for mandatory price display across the hotel industry. This requirement would also apply to short-term rentals and online travel agencies.

“In America, the consumer typically books based on price. That really allows them to book only the place that best fits their budget. And that’s what the free market is,” Wolfe said.

According to the American Hotel and Lodging Association (AHLA), only about six percent of hotels charge a mandatory resort fee.

In a written statement, the organization endorsed the legislation, which was just passed by a Senate committee in July. Kevin Carey, interim president and CEO of AHLA, said the recent vote was “an important step toward a more transparent booking process for guests and a level playing field across the lodging industry.”

But until the rule goes into effect, Wolfe said she is on the lookout for other forms of hidden hotel fees.

“We are now seeing hotels starting to charge parking fees, especially in locations where almost everyone arrives by car and there is little opportunity to get there by public transportation,” she said.

This proposal now goes to the Senate for a vote. This could take several weeks, as lawmakers will not be back here on Capitol Hill until September. The House of Representatives passed a similar measure earlier this summer.

Travelers United recommends that you file a consumer complaint with the state attorney general to dispute hidden hotel fees you are charged during a trip. Wolfe said each state attorney general has a consumer complaint form. More information can be found here: https://www.travelersunited.org/end-hotel-resort-fees/

We have also reached out to Best Western, Marriott, IHG Hotels & Resorts, Hyatt, Hilton and Wyndham Hotels & Resorts for comment on this legislation.

IHG Hotels & Resorts cited the national position of the American Hotel and Lodging Association.

Hilton makes the following statement:

“We know consumers prioritize transparency, and as we shared last fall, we have made improvements to Hilton’s websites and apps to ensure mandatory fees are displayed up front. Additionally, given that consumers have hundreds of places to search for accommodations, we remain committed to displaying fee-inclusive rates on all other booking platforms that sell our inventory. That’s why we supported legislation introduced in the U.S. Senate (Hotel Fees Transparency Act) and the U.S. House of Representatives (No Extra Fees Act) to establish a uniform standard for mandatory fee display across the industry – from hotels to online travel agencies to metasearch sites and short-term rental platforms. We continue to work with the sponsors of the federal legislation to ensure that any final legislation that is signed reflects our position to level the playing field.”

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