Hotel Advertising Transparency Act Introduced In Congress Requires Hotels To Include All Fees In Advertised Price For Rooms

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Consumer Reports Supports Congressional Bill to Stop Hidden Resort Fees

WASHINGTON, D.C. – Consumer Reports has urged lawmakers in Congress to support legislation that would prohibit hotels from advertising the price of a room without including all mandatory fees charged during a traveler’s stay.  The Hotel Advertising Transparency Act of 2019, introduced  by Representatives Eddie Bernice Johnson (D-TX) and Jeff Fortenberry (R-NE) aims to protect travelers from fees that aren’t clearly disclosed in the advertised price.

“Travelers shouldn’t have to read the fine print to figure out all the fees they’ll be charged for staying at a hotel,” said Anna Laitin, director of financial policy for Consumer Reports.   “Hotels should be required to disclose all fees in their advertised rate so consumers won’t get stung with a higher bill than what they’re expecting to pay when booking a room.”

Hotels have come under fire in recent years for failing to clearly disclose mandatory fees to travelers.  In 2012 and 2013, the Federal Trade Commission sent letters to 34 hotels and 11 online travel agencies warning them that they may be violating the law by not including all fees in the advertised price for rooms.  However, the Commission failed to take any further action to stop the practice, which has continued unabated. 

In August, Consumer Reports called on the Federal Trade Commission to investigate and stop hotels that charge mandatory resort fees that are not included in the base, advertised rate for rooms.  An investigation by Consumer Reports this summer found that 31 of the 34 hotels previously targeted by the FTC continue to charge resort fees and none of those include the fees in the price quoted to consumers.  Similarly, none of the 10 online travel agencies that are still operating today includes the resort fees in the initial quoted price.

Major hotels have also been the subject of lawsuits challenging hidden resort fees.  In early July, the DC Attorney General sued Marriott for charging deceptive and misleading resort fees that hide the true cost of booking a room at the hotel chain.  Later that month, the Nebraska Attorney General filed a similar lawsuit against Hilton.

Avoiding Hidden Flight & Hotel Fees

Contributed by Jason Alderman 

The last few years have been tough economically for many people. Unemployment fears combined with plunging home, stock and retirement account values caused many to forgo big vacations -- even though stressful times are when we most need to recharge our batteries.

But with the economy turning around, many families are cautiously dipping their toes in the travel pool once again. Hotel occupancy rates have risen in many areas and airports are as crowded as ever.

Here are a few budgeting tips if you're planning a trip that involves flying and a hotel stay:

Be flexible. During "shoulder seasons" (from Easter to summer and Labor Day through Thanksgiving), flights, hotels, rental cars and tourist attractions are often much cheaper than during peak seasons.

Saturday and midweek flights are often cheaper than the days when most business travelers fly. Conversely, hotels in major cities are usually cheaper on weekends, when business travelers have returned home -- although locations that cater to leisure travelers are usually less expensive during the week.

Avoid hidden fees. Airlines and hotels are notorious for tacking extra charges onto their bills. Watch out for:

• A few airlines allow one free checked bag (Southwest still allows two), but most charge up to $25 for the first checked bag each way, and even more for additional pieces. Plus, most now tack on hefty fees for overweight and over-sized checked and carry-on luggage, so measure and weigh your luggage carefully.


• Also expect to pay extra for things like changing flights, extra leg room, priority boarding, unaccompanied minors, pets, Wi-Fi access and food. Some airlines even charge extra to speak to a live person or to buy your ticket at the airport counter or by phone.


• Airfarewatchdog.com, Travelnerd.com and Kayak offer great fee comparison charts for various airlines; but always double-check the airline's own posted rules before booking your flight.


• Some hotels charge extra if you check in before a certain time. If yours does, ask whether they'll store your luggage for free until check-in so you can begin sightseeing unencumbered.


• Many hotels charge a hefty penalty if you don't cancel a reservation 24 to 72 hours beforehand and some also charge an early-departure fee, which is sometimes the equivalent of one night's lodging. Read the hotel's cancellation policy before booking, especially if you're looking at a discounted, non-refundable rate.


• Room rates are usually based on double occupancy. Although kids can usually stay free, many hotels charge extra for additional adults.


• Minibars often have electronic sensors that trigger a charge if you simply move the contents. Also, water or snacks sitting on the dresser may appear to be complimentary, but double-check before consuming.


• Hotel parking in major cities can cost up to $50 a day, and many have mandatory valet parking, which means adding a tip on top of that. Research nearby municipal parking lots beforehand, or check the city's tourism bureau for hotels offering parking promotions. Sometimes using public transportation and taxis is cheaper overall than paying for parking.


• Some hotels and resorts automatically add housekeeping or spa gratuities to your bill, so ask first before leaving your own tip -- unless of course the service was terrific.


• Most hotels charge exorbitant amounts for local and long-distance calls made from room phones, so use your cellphone.


• Resorts often charge extra for services they offer -- such as gym access or daily newspaper delivery -- even if you don't use them. Find out the policy ahead of time and scrutinize your bill for unused services.


• Ask to see your bill the night before you check out, so you can review it carefully for overcharges.


• If you're traveling abroad, be aware that using your cellphone can be mighty expensive. Research your carrier's international calling plan and ask whether your phone is compatible with foreign networks. You may need to rent an international cellphone, or buy or rent an unlocked phone and international SIM card at sites likeTelestial.com or CellularAbroad.com.

Comparison shop. An ever-growing number of sites allow you to search for and compare deals on flights, hotels and rental cars, including Airfarewatchdog.com, Hotels.com,Hotwire, Lastminute.com, Kayak, Orbitz, Priceline and Travelzoo. Always compare prices to those listed on the airline, hotel and rental car agency's own sites to make sure they aren't offering a better deal.

And most importantly, before clicking "confirm," make sure the final price matches the initial quote. I've seen fares jump $50 or more in just minutes or had the seat I was booking suddenly become unavailable.

If your budget's in good shape and you're getting wanderlust, maybe it's time to venture out into the world again. Just be cautious about how hidden expenses can add up.

This article is intended to provide general information and should not be considered legal, tax or financial advice. It's always a good idea to consult a legal, tax or financial advisor for specific information on how certain laws apply to you and about your individual financial situation.