The Critical Points: First to go were airline cancellation fees, next should be hotel resort fees
In the airline world, fees have become big business. There are checked bag fees, carry-on bag fees, seat assignment fees, fees to print boarding passes, fees to talk to a person and even fees that provide no tangible benefit or service to customers. Think of close-in booking fees, for example, when you may be required to pay $75 or extra miles if you're within 21 days of departure.
There are also change fees, cancellation fees and the complete forfeiture of certain basic economy tickets that don't allow changes or refunds.
But this week, we saw the airline industry take a big step in the right direction when United announced it was getting rid of change fees.
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These fees have always been a way for airlines to increase ancillary revenue. In addition to paying any difference in between your existing and new ticket, a change fee seemed particularly punitive.
But COVID-19 has turned the world upside down and diminished business for airlines and hotels to the point that customers need confidence they'll be able to change plans without being punished, or they simply won't book a trip at all.
United is the first major airline to make this pro-consumer move of permanently removing change fees — though who knows what the carrier's policies will look like in five years. Also, Southwest has never had change fees, and would only charge travelers the fare difference.
So, if an airline can get rid of change fees, which serve no practical purpose and doesn't provide any good or service, a hotel can get rid fo resort fees. Right?
Related: How to avoid resort fees
Imagine you go to the grocery store to buy a single $2.99 box of cereal. At the register, however, you notice $1 was added to your total. It's listed as a "shopping cart fee" — so you politely tell the manager you didn't use the shopping cart. The manager says the fee helps offset the cost of providing shopping carts for all customers and, sorry, that's the policy whether you use a cart or not.
That's essentially the same as a hotel resort fee: A mandatory charge, often poorly disclosed or not advertised, regardless of whether or not you use the amenities. In reality, it's a way for hotels to increase cash flow while keeping published rates low. It's taxed identically to the advertised room rate.
Resort fees, urban fees, season fees, membership fees, urban retreat fees and whatever else the industry will think to call them next need to go. Now. Continuing to charge resort fees at properties with diminished offerings because of COVID-19 is a new low in the resort fee saga.
Many beachfront and Las Vegas properties, for example, are still charging full resort fees, even though amenities such as the pool, kids club and fitness center have reduced hours or have closed altogether.
Because occupancy remains historically low, now is the perfect time for hotels to give travelers transparent rates, without any hidden fees.
Imagine the publicity boost a national hotel chain would receive if it eliminated resort fees in the name of fair and straightforward pricing. They can — and arguably should — raise average daily room rates to compensate for the lost resort fee, especially as demand increases. Ultimately, travelers should be able to clearly see the all-in rate for a hotel stay and determine if the product (and its amenities) are worth the price.
Related: The 10 most outrageous resort fees
Surely, if Las Vegas stopped advertising $30 room rates with a hidden $44 per night resort fee, and instead advertised a $60 per night all-in rate, there would be wins in terms of both booking and publicity.
Hotels will need to be creative to lure back travelers, and eliminating resort fees is a logical, pro-consumer move to show customers you want and value their business. One look at the positive press United received when it did away with change fees should tell you exactly how hungry the public is for the travel industry to adopt more consumer-friendly policies.
Hotels can build trust with guests and sell rooms for a fair rate without tacking on frustrating mandatory fees. In light of the pandemic, things that seemed improbable -- or even impossible -- six months ago are happening. If an airline like United can shed long-held fees in favor of flexibility and transparency, who's to say a major hotel chain can't do the same?
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- 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.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 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. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 $6,000 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.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.

