USA bans "junk fees" (inc. resort fees) on hotels

[justinbrett]

Prices must now be advertised all inclusive, so while they can still charge resort fees it would defeat the purpose, as they are only used to beat the aggregators.

Unsure if this includes tax.

New federal rule bans 'junk fees' on hotels, live-event tickets

It would require businesses to disclose total prices upfront.

abcnews.go.com

 

[MEL_Traveller]

Excellent news. We’re lucky here in Australia… in fact most places in the world… but the US is out of control. Resort fees in Vegas doubled the advertised price of accommodation for us last month! In some cases it was far worse… the cheap 3-star hotels like Circus, Stratosphere and the like were advertising rooms at $20, but then tacked on resort fees of $35 or more.

And you basically got nothing for the resort fee except wifi. Oh, one hotel said their resort fee included the ‘notorization’ of ‘up to two documents’. Really?

 

[justinbrett]

Excellent news. We’re lucky here in Australia… in fact most places in the world… but the US is out of control. Resort fees in Vegas doubled the advertised price of accommodation for us last month! In some cases it was far worse… the cheap 3-star hotels like Circus, Stratosphere and the like were advertising rooms at $20, but then tacked on resort fees of $35 or more.

And you basically got nothing for the resort fee except wifi. Oh, one hotel said their resort fee included the ‘notorization’ of ‘up to two documents’. Really?

I’ve often thought about getting a boarding pass printed because it’s one of the things included.

This will be a real problem for Vegas, I get comp rooms all the time but I have to pay the resort fees. I can’t see the casinos forgoing the resort fees on all their comp rooms, so they’ll probably be far fewer comp rooms going forward.

 

[serfty]

I had MGM Platinum and Gold status ar Vegas via the now defunct Hyatt partnership.

Resort fees were waived for me ... My last stay I had a few nights there for USD18 per.

So this will set the cat among the pigeons.

 

[jastel]

Great news, if you want to charge me extra for a swimming pool I didnt use as its single figures outside you can expect a cranky review.

 

[MEL_Traveller]

Great news, if you want to charge me extra for a swimming pool I didnt use as its single figures outside you can expect a cranky review.

People think Ryanair is bad with all their add ons. That’s nothing compared to resort fees in the US.

And it’s spreading too… hotels in Nee York are now adding hefty ‘destination’ fees.

 

[RB001]

People think Ryanair is bad with all their add ons. That’s nothing compared to resort fees in the US.

And it’s spreading too… hotels in Nee York are now adding hefty ‘destination’ fees.

Pretty much anywhere 'popular' in the US attracts this behaviour - of course what it's known as will vary - watch for amenity fees or facility fees to the same end.
Apparently going since 1997, multiplying ever since.

 

[Lynda2475]

Im happy to forgo use of the pool and gym and not pay a resort fee, city hotels are not resorts. IME the wi-fi is usually free with hotel membership and not part of any resort fee.

Luckily never had to pay a resort fee in NYC.

 

[justinbrett]

Im happy to forgo use of the pool and gym and not pay a resort fee, city hotels are not resorts. IME the wi-fi is usually free with hotel membership and not part of any resort fee.

Luckily never had to pay a resort fee in NYC.

It can actually be a downgrade at resort fee properties, eg HH Diamond gets premium WiFi, but there's a clause that you don't get it if it's included in resort fees, which means they can say the resort fee is covering it and you get the slow WiFi like everybody else.

Not everywhere but I've had it at a few properties. Honolulu being on one of them (HHV).

The resort fee was never about covering these amenities, it's just a scam to compete with cheaper hotels.

People think Ryanair is bad with all their add ons. That’s nothing compared to resort fees in the US.

And it’s spreading too… hotels in Nee York are now adding hefty ‘destination’ fees.

Not new, IIRC NY has had them for the best part of a decade. LA/SF/HNL/MIA - the list is long.

 

[Mattg]

Definitely good news!

 

[Captain Halliday]

Remarkable coincidence that HH has had a devaluation in the last day or so.

 

[Human]

Not so fast, I'm afraid.

The "junk fee" ban was part of the 1547-page "Continuing Resolution" budget bill which was shot down by President-elect Trump at the end of last week. The bill was replaced by a slimmed-down 118-page bill which has passed both houses and has been signed into law by President Biden.

I'll let the Wall Street Journal take over from here:

Post automatically merged: Today at 2:53 PM

The WSJ article is behind a paywall but for those who have access:

https://www.wsj.com/politics/policy/government-shutdown-spending-bill-votes-06529c98?mod=hp_lead_pos1

 

[justinbrett]

Not so fast, I'm afraid.

The "junk fee" ban was part of the 1547-page "Continuing Resolution" budget bill which was shot down by President-elect Trump at the end of last week. The bill was replaced by a slimmed-down 118-page bill which has passed both houses and has been signed into law by President Biden.

I'll let the Wall Street Journal take over from here:

View attachment 420229

Post automatically merged: Today at 2:53 PM

The WSJ article is behind a paywall but for those who have access:

https://www.wsj.com/politics/policy/government-shutdown-spending-bill-votes-06529c98?mod=hp_lead_pos1

It was regulation not a law

 

[Human]

It was regulation not a law

So does that mean that it's still enforceable even though Congress hasn't voted on it? Why was it included in the original CR in the first place, then?

 

[justinbrett]

So does that mean that it's still enforceable even though Congress hasn't voted on it? Why was it included in the original CR in the first place, then?

As I understand it, it doesn’t require a vote. The FTC is similar to our ACCC / ASIC etc and they can make regulation without requiring a specific law (as there are laws that given them the power to do this).

As I understand it some politicians wanted to enshrine in it legislation so this is a simultaneous act, and its failure to pass doesn’t mean the FTC rule is abolished.

 

[moa999]

Does the law include 'state taxes' as part of he disclosure?

 

[MEL_Traveller]

Does the law include 'state taxes' as part of he disclosure?

I don’t think so.

While state taxes are a pain, most US residents know it will be extra, and how much it will be for their particular state. They don’t seem fussed by it.

I can’t see how a company could operate nationally if it needed 52 different price calculations for every product.

 

[dajop]

Not so fast, I'm afraid.

The "junk fee" ban was part of the 1547-page "Continuing Resolution" budget bill which was shot down by President-elect Trump Musk at the end of last week.

Corrected that for you.

 

[justinbrett]

I don’t think so.

While state taxes are a pain, most US residents know it will be extra, and how much it will be for their particular state. They don’t seem fussed by it.

I can’t see how a company could operate nationally if it needed 52 different price calculations for every product.

From what I've heard it will be included.

It is already included in domestic airfares.

The hotels (and airfares) are taxed by their location, not the location of the buyer when they make the transaction.