Hilton Says It Is Working To Disclose Mandatory Fees

Hilton Worldwide said on Thursday that it was working to ensure mandatory fees are displayed upfront on all its websites and apps.

Hotel operators have received criticism on how fees are displayed to consumers and been accused of engaging in fraudulent and anti-competitive practices by misleading consumers in advertisements, which prevent comparative shopping, and charging millions of dollars in hidden fees.

"The process to update and align our technology is under way," Hilton said in a letter to U.S. Senators Amy Klobuchar and Jerry Moran.

The senators introduced the bipartisan Hotel Fees Transparency Act in the U.S. Senate in July, with the aim of cracking down on hidden fees and establishing federal guidelines for pricing.

Marriott International in May took similar action and agreed to prominently display all "resort fees" and increase price transparency in its advertisements and booking process.

Last year, Airbnb made changes to the way it displays prices on its platform after it faced customer complaints.

This comes at a time when global travel has rebounded after the pandemic.

Hilton said on Thursday it is also advocating for all platforms that advertise, distribute, and sell their inventory to display all fees to ensure the consumer sees consistent information wherever they book.

The platforms include hotel websites to online travel agencies, as well as Google and short-term rental platforms, according to the hotel operator.

Reporting by Doyinsola Oladipo in New York and Kannaki Deka in Bengaluru; Editing by Shounak Dasgupta, Reuters

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

Consumer reports a

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.