Congress, once again, to weigh making hotel resort fees illegal
The battle over resort fees is once again entering the halls of Congress.
Traveler frustration with these fees has been growing, and several state attorney generals are fighting the added costs in the courts. Now, federal lawmakers are taking action.
Wednesday night, Rep. Eddie Bernice Johnson (D-TX) and Rep. Jeff Fortenberry (R-NE) introduced bipartisan legislation named the "Hotel Advertising Transparency Act of 2019," aimed at making the practice of charging resort fees illegal.
This is the first legislation aimed at killing resort fees introduced in Congress since 2016.
The bill maintains that "advertising that does not reflect the true mandatory cost of a stay at a place of short term lodging is deceptive."
The bill specifically goes on to state that: "No person with respect to whom the Federal Trade Commission is empowered under section 5(a)(2) of the Federal Trade Commission Act (15 I.S.C 45(a)(2)) may advertise in interstate commerce a rate for a place of short-term lodging that does not include all required fees, excluding taxes and fees imposed by a government." The FTC (which has said resort fees are harmful to consumers) is empowered to enforce the rule; the legislation also empowers state attorneys general to bring civil actions on behalf of residents of the state in an appropriate district court of the United States.
Consumer advocacy group Travelers United has been leading the effort to get the bill introduced and supported in Congress.
"This is a monumental bill for American travelers," said Lauren Wolfe, counsel for Travelers United. "Not only will this bill require upfront disclosure of all fees in the advertised price of a hotel room, but it will require the same for short-term rentals. Congress has a real opportunity here to pass a bipartisan, common-sense bill on behalf of American consumers."
Resort fees -- and associated mandatory fees like destination fees and amenity fees -- have come under the spotlight in 2019. Just this month, a class-action lawsuit was filed in the U.S. District Court for the Southern District of California against Marriott alleging that resort fees amounted to a drip pricing scheme. Marriott is also currently being sued by the attorney general of Washington, D.C., over resort fees, and Hilton is being sued by the attorney general of Nebraska over what he alleges are "deceptive and misleading pricing practices and failure to disclose fees."
"This summer, we witnessed a record number of Americans take the opportunity to travel. Unfortunately, this also meant a record number of travelers were subjected to deceptive hidden fees charged by hotels, motels, and other places of accommodation," said Congresswoman Johnson. "It is projected that in 2019, over three billion dollars in revenue alone will be collected from consumers due to these hidden fees. Consumers should be able to enjoy their vacation without being ripped off and financially burdened. This bill would require that the prices advertised by hotels and online travel agencies must include all mandatory fees that will be charged to a consumer, excluding taxes."
We've covered the 10 worst resort fees -- and more importantly, how to avoid resort fees -- but if there is any hope of resort fees becoming illegal, this bill has a long way to go. It must first be passed by the House Committee on Energy and Commerce before it would go to a full House vote. That would be followed by the same process in the Senate with a bill being introduced and voted on, and then a jointly-agreed upon bill being forwarded to -- and signed into law -- by the president.
The whole House process starts with the Consumer Protection and Commerce Subcommittee, which will bring its findings on the bill to the full Energy and Commerce Committee for consideration.
While it's unclear how far this bill will advance, frequent hotel guests are sure to cheer its introduction and hope it becomes law.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.