Skip to main content

FTC warns hotels about 'resort fees'

By Marnie Hunter, CNN
updated 6:48 PM EST, Wed November 28, 2012
STORY HIGHLIGHTS
  • Federal Trade Commission warns 22 hotel operators about unquoted fees
  • Online reservation systems may misrepresent prices by leaving out mandatory fees, FTC says
  • FTC has not publicly named the hotels it warned

(CNN) -- If you've ever been hit with one, you know how an unexpected "resort fee" can take your breath away. At up to $30 a night, the dollars quickly add up when you spend a few nights in a hotel that charges a mandatory fee for amenities that might include the use of the property's gym or pool.

The element of surprise that accompanies some of these mandatory fees has caught the attention of the Federal Trade Commission, which recently sent a letter to 22 hotel operators warning that their online rate quotes may be deceptive and in violation of FTC regulations.

The commission found that some of the hotel operators it addressed list only the room rate and taxes in online rate quotes, while listing mandatory fees separately either nearby or on another page, while other hotels list the fees in fine print or don't list additional fees at all, indicating only that other fees may apply.

Hotels ready for the end of the world

"These practices may violate the law by misrepresenting the price consumers can expect to pay for their hotel rooms," the commission's letter to hoteliers said. "We believe that online hotel reservation sites should include in the quoted total price any unavoidable or mandatory fees, such as resort fees, that consumers will be charged to stay at the hotel."

The FTC declined to name the hotel operators that received the letter.

"This is the first time the FTC has publicly stated its position that it is deceptive for the hotels not to include mandatory fees as part of the total price they quote. We want to give the hotel operators an opportunity to come into compliance voluntarily before naming them publicly," said commission spokeswoman Betsy Lordan via e-mail.

A hotel for every taste: Fodor's top 100

Charging mandatory fees for amenities that are included at many hotels is a balancing act for hoteliers, according to Howard Adler, a professor of hotel management at Purdue University. Hotels make money on resort fees, but they can lead to customer dissatisfaction and loss of business, he said via e-mail.

"Guest satisfaction is a very costly issue for hotels to deal with since (consumers) have so many choices and brand loyalty is fleeting at best," Adler said.

Guests who are surprised by fees when the bill arrives can be especially troubled by them.

The trade commission encouraged the hotel operators to review their online price quoting procedures warning that the FTC "may take action to enforce and seek redress for any violations of the FTC Act as the public interest may require."

So guests will still have to pay the fees, but chances are, you'll know about them before the bill is slipped under the door.

Business or pleasure? Luxury hotels offer day-only rooms

Have you ever encountered an unexpected hotel fee? Share your experience below.

Aaron Cooper contributed to this report.

ADVERTISEMENT
Part of complete coverage on
CNN recommends
updated 8:51 AM EDT, Mon April 22, 2013
Get out and see what draws wilderness lovers to the United States.
updated 11:27 AM EST, Mon February 4, 2013
Check out daily travel photos from CNN.com readers and share your best shots
updated 7:44 AM EDT, Sun April 7, 2013
In the 1950s and '60s, the ocean liner SS United States was the choice of movie stars, famous musicians and kings.
updated 8:22 AM EDT, Fri April 26, 2013
The worn-down, travel-weary businessperson is looking for proximity, convenience and comfort in an airport hotel. There's little time to waste.
updated 9:36 AM EDT, Mon April 29, 2013
You heard of the two guys who recently opted in to a two-year, $1.5 million holiday? These are some of the sights they'll be privy to.
updated 7:47 AM EST, Wed February 6, 2013
He's an 82-year-old "redneck hillbilly" who's been scratching an itch to go fast his whole life. Now he's got his own Gulfstream G650.
updated 8:45 AM EDT, Fri October 19, 2012
Gross is everywhere. It's in the food we eat, it's in nature, and of course, we ourselves might be the greatest source of grossness.
updated 8:13 AM EST, Fri March 1, 2013
We asked readers to share photos of their favorite beaches. Relax and enjoy.
updated 9:01 PM EDT, Fri July 27, 2012
When five teenagers sat down and posed for a picture at Copco Lake in 1982, they didn't plan on making it a tradition. But that's what it became.
ADVERTISEMENT