New federal proposal would require hotels, rentals to display fees

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

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

“And I was like, this is crazy. This has to be illegal. How are we letting this happen in the United States?” said Wolfe.

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

“When I arrived at the hotel, they said, well, you owe an extra $20 in a resort fee that you have to pay to get the key to the room. And I was like, but I literally have a document here that says paid in full,” she said.

On Capitol Hill, both Democrats and Republicans are trying to make it easier for you to be aware of those charges upfront.

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

“A consumer in America is usually booking based on price, and this allows them to truly just book the place that works best for their budget, which is what the free market is,” said Wolfe.

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The American Hotel and Lodging Association (AHLA) reports only about six percent of hotels charge a mandatory resort fee.

In a written statement, the organization endorsed the legislation which just got approved by a Senate committee in July. AHLA Interim President & CEO Kevin Carey said the recent vote “is an important step toward a more transparent booking process for guests and a level playing field across the lodging industry.”

But until it becomes law, Wolfe said she’s watching for other forms of hidden hotel fees.

“What we’re seeing now are hotels are starting to add a parking fee, particularly in locations where almost everybody arrives by car and there’s almost no way to get there via public transit,” she said.

This proposal now heads to the Senate floor for a full vote which may not be for several weeks because lawmakers won’t be back here on Capitol Hill until September. The House passed a similar measure earlier this summer.

Travelers United recommends that you file a consumer complaint with their Attorney General to dispute any hidden hotel charge you encounter during a trip. Wolfe said every AG has a consumer complaint form.

You can find more info here.

We also reached out Best Western, Marriott, IHG Hotels & Resorts, Hyatt, Hilton, Wyndham Hotels & Resorts for a comment about this legislation.

IHG Hotels & Resorts referred to the national stance of the American Hotel and Lodging Association.

Hilton provide the following statement:

“We know consumers prioritize transparency and, as we shared last fall, we have implemented enhancements to Hilton’s websites and apps to ensure mandatory fees are displayed upfront. Additionally, given the fact that consumers have hundreds of places where they can shop for lodging, we continue to advocate for the upfront display of fee-inclusive pricing across all other booking platforms that sell our inventory. That is why we supported legislation introduced in the U.S. Senate (Hotel Fees Transparency Act) and U.S. House (No Extra Fees Act) to establish a uniform standard for mandatory fee display across the entire industry – from hotels to online travel agencies to metasearch sites and short-term rental platforms. We continue to work with the federal bill sponsors to ensure any final bill signed into law reflects our position of achieving a level playing field.”

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