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We don't need another government agency to stop this.
The problem is local government agencies don't enforce
existing laws against fraud and false advertizing and let the
hotels get away with publishing fraudulent rates.
Hotels’ ‘extra’ fees scrutinized by FTC By Dawn Gilbertson The Republic | azcentral.com Thu Nov 29, 2012 8:41 PM Federal regulators are cracking down on hotels’ disclosure of resort fees, mandatory nightly charges that can top $40 and are widespread in Arizona and other vacation hotspots. The Federal Trade Commission, taking its first position on the controversial fees, this week sent letters to 22 hotels around the country warning that they may be in violation of deceptive-advertising laws because their websites don’t include the resort fee in quoted room rates. The concern is that consumers don’t know the true price of the stay before they book. “Our goal at this time is to send a broad message to the the travel industry that all prices quoted to consumers should include any mandatory fees,” said Annette Soberats, a staff attorney with the FTC’s Bureau of Consumer Protection. The U.S. Department of Transportation began forcing airlines to include mandatory fees and taxes in their quoted airfares in January, and consumer advocates are pushing for better disclosure of all airline fees. The FTC isn’t releasing the names of the hotels because a warning letter is a preliminary step. The goal is to work privately with the hotels to get them in compliance and avoid a formal investigation and possible enforcement action, Soberats said. Resort fees have become prevalent in the past few years as hotels bundle services and amenities. Some items, such as Internet access, previously cost extra. Others are formerly standard features such as swimming pools and fitness centers. The biggest problems regulators found in their review of hotel websites, Soberats said, were vague disclosures such as “fees may apply” or fees that were buried in fine print, sometimes on a separate page from the initial booking page. “None of these is acceptable,” Soberats said. Officials with at least three Arizona properties that charge resort fees, Arizona Grand, Arizona Biltmore and L’Auberge de Sedona, said they did not receive the letter. Others were checking to see whether they did. Gregory Roper, director of sales and marketing for luxury hideaway L’Auberge, said the hotel is confident it prominently displays the resort fee as required. “We fully disclose every fee that we charge ... every way we possible can,” he said. Technically, L’Auberge charges the highest resort fee in the state because it’s based on a percentage of the room rate — 10 percent, with a minimum of $25 a night. The inn’s nicest rooms and cottages can top $500 a night. A creekside cottage for one night next weekend is $535 a night. The “service and parking fee” listed on the website for that reservation is $68.50, with parking making up $15 of the total. Arizona Grand Resort, near South Mountain on the Phoenix-Tempe border, has the highest rate among Phoenix-area resorts. It boosted its nightly fee from $30 to $40, plus tax, in February. The fee drops to $25 in the winter when its marquee attraction, the Oasis Water Park, is closed. The resort also added in-room Internet access to the items covered by the fee. Arizona Grand isn’t alone in boosting fees. Royal Palms Resort & Spa in Phoenix and Hyatt Regency Scottsdale Resort at Gainey Ranch also increased their resort fees. The fees have been on the rise in Las Vegas, too, with several MGM Resorts International hotels, including Mandalay Bay and Bellagio, now charging $25 a night. Other hotels and resorts are adding the lucrative fees. In July, the top-of-the-line Four Seasons Resort Scottsdale at Troon North introduced a nightly $20 fee. Last year, the luxury Ritz-Carlton Dove Mountain in Marana, just north of Tucson, started charging a $35 fee. Just two large Phoenix-area resorts — Fairmont Scottsdale Princess and Sheraton Wild Horse Pass Resort — do not charge resort fees. They do have separate charges for some services, including parking and in-room Internet. The FTC zeroed in on the fees after receiving complaints about them during a conference in May. The conference topic was “drip pricing,” where businesses advertise one price and then add charges as consumers complete the buying process. “It was something that many consumers discussed,” Soberats said. Travel-industry analysts say the FTC’s spotlight on resort fees is good for travelers. “This is a recognition by regulators that the consumer has to be educated, has to be informed,” said Henry Harteveldt, of Atmosphere Research Group in San Francisco. “Given the number of hotels that charge these fees, they want to make sure there are no unpleasant surprises.” Front-desk workers will benefit from better fee disclosure, too, said Bjorn Hanson, divisional dean and clinical professor of the New York University Preston Robert Tisch Center for Hospitality, Tourism and Sports Management. “It’s good news for many hotel employees who are faced with guests who are questioning or even angry about resort fees,” he said. Revenue from fees and surcharges, including resort fees, will total $1.95 billion this year, according to a recent NYU report. The amount from resort fees is difficult to count and not broken out, Hanson said. -------------- Arizona resort fees The amenities vary by resort and may include Internet access, self-parking, pool and fitness-center access, local calls and newspaper. At some resorts, the fee includes certain gratuities and valet parking.
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