Unexpected Fees Can Add to Cost of Vacations, BBB Warns

Clearwater, FL – Better Business Bureau (BBB) advises vacation-bound consumers to ask questions about extra fees that could turn a bargain trip into a budget buster.

"Consumers should be aware of ‘resort fees’ for hotel services that may be charged whether you use these services or not," said Karen Nalven, President of BBB Serving West Florida. "These fees can range from those bottles of water on your dresser, internet access, use of gym facilities, newspapers to a safe in your room."

Extra fees ranging from $10 to $30 a day are seldom disclosed and often aren’t included in the checkout price on online travel booking sites. In many cases, consumers don’t learn about the fees until they check into or out of a resort.

The Federal Trade Commission (FTC) says resort fees are part of a business model known as “drip pricing,” in which firms advertise only part of a product’s price and reveal other charges later as the customer goes through the buying process.  The fees can be mandatory charges, such as hotel resort fees, or fees for optional upgrades and add-ons. Drip pricing is used by many types of firms, including Internet sellers, automobile dealers, financial institutions, and rental car companies.

Consumers have said that extra fees were never mentioned at all or appeared separate from the quoted reservation price on an online booking site. The FTC says other consumers “complained they did not know that they would be required to pay resort fees in addition to the quoted hotel room rate,” and only found out when they checked out of the hotel.

The FTC has sent a warning letter to 22 hotel operators, warning them that they may be engaging in deceptive advertising by not including mandatory resort fees when they quote a price. However, the federal agency has no authority to regulate hotels outside the United States.

BBB offers the following advice to avoid undisclosed hotel resort fees:

• Carefully read terms and conditions – When booking online, look for fine print which may disclose whether additional fees may be added to the nightly cost of a room.
• Contact the hotel in advance – After you have done your comparison shopping online, call the hotel or resort directly to find out what additional fees may apply and whether they can be waived if the amenities are not used.
• Reconfirm upon check-in – Bring a copy of your booking receipt when you check in,  and verify the total cost of your booking.  It is much easier to negotiate in advance rather than at checkout, when you may be in a rush to get to the airport. If you are told that additional charges may be placed on your credit card for resort fees, make sure the hotel customer service representative or manager understands your concerns and makes a note in your file if you wish to opt out.
• File a complaint – If you feel that the hotel or other provider failed to disclose mandatory fees, you may file a complaint at www.bbb.org.

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BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. BBB provides objective advice, free BBB Business Reviews® and BBB Wise Giving Reports®, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is a difference in viewpoints. The first BBB was founded in 1912. Today, 114 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than three million local and national businesses and charities.