Resort fee

A mandatory, per-night charge imposed by hotels and resorts for amenities and services, often disguised as an additional fee separate from the advertised room rate.

What is a Resort Fee?

A resort fee, sometimes called a "destination fee," "amenity fee," or "facility fee," is an additional mandatory charge levied by hotels and resorts on guests, separate from the nightly room rate. This fee purports to cover the cost of various amenities and services, such as Wi-Fi, fitness center access, pool access, local calls, business center usage, or shuttle services [S1, S2]. Crucially, these fees are typically non-negotiable and apply to all guests, regardless of whether they use the included amenities [S7].

The Controversy and Consumer Impact

Resort fees have become a significant point of contention for consumers and regulatory bodies alike. Critics argue that these fees are a form of "drip pricing" or "hidden fees," where the full price of a hotel stay is not transparently presented upfront [S2, S3]. This practice can mislead consumers into believing a room is cheaper than it actually is, only to discover the additional mandatory charge at the time of booking or check-in [S4]. For example, a room advertised at $150 might actually cost $180 or more per night once a $30 resort fee is added [S7].

Surveys indicate a strong consumer aversion to resort fees. A 2023 survey found that 85% of Americans dislike or hate resort fees, and 76% believe they are deceptive [S7]. Many consumers feel these fees are simply an artificial way for hotels to boost revenue without increasing their advertised room rates [S5]. This lack of transparency makes it difficult for consumers to comparison shop effectively, as different hotels may bundle different services into a non-standardized fee, or some may not charge one at all [S2].

Legal and Regulatory Landscape

Regulatory bodies in several countries, including the United States, have scrutinized resort fees. In the U.S., the Federal Trade Commission (FTC) has warned hotels that separating mandatory fees from the advertised room rate may constitute a deceptive practice [S3, S4]. They argue that consumers are harmed when they cannot easily determine the total price of a hotel room upfront [S3]. Several states, such as Nebraska, have introduced legislation aiming to ban or restrict resort fees [S8].

There have also been class-action lawsuits filed against hotel chains regarding the deceptive nature of resort fees [S2]. While some hotels have begun to include these fees in their initial pricing displays in response to pressure, the practice remains widespread, especially in popular tourist destinations like Las Vegas and Hawaii [S1]. For instance, a 2023 analysis found that the average resort fee in Las Vegas was $40.66 per night, nearly doubling from $21 in 2015 [S6].

Economic Impact and Industry Perspective

From an industry perspective, hotels often justify resort fees by claiming they allow them to maintain competitive advertised rates while covering the rising costs of amenities and services that guests expect [S5]. They argue these fees are necessary to provide value and enhance the guest experience. However, critics counter that if these services are truly mandatory and part of the basic offering, their cost should simply be integrated into the room rate [S4]. The revenue generated from resort fees can be substantial; it's estimated that U.S. hotels collect billions of dollars annually from these charges [S2]. This revenue can also be advantageous for hotels as, in some jurisdictions, it may be subject to different taxes than room rates, or allow them to appear to have lower base rates on online travel agencies [S5].

Looking Ahead

The future of resort fees is uncertain, with ongoing consumer complaints, potential legislation, and increased regulatory scrutiny. Some industry experts predict a trend towards greater price transparency, possibly driven by government intervention or market competition [S3]. Until then, consumers are advised to carefully check the "total price" or "final price" breakdown before booking to avoid unexpected additional costs [S1].

Sources

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