Is there any possibility that the Biden administration will be able to pass any laws concerning resort fees? I sincerely hope so, because I'm tired of dealing with them.
Well, we'd certainly like to think so, but we can't help doubting it.
But first, for those who missed it, on Oct. 27 President Joseph Biden announced that his administration will be targeting resort fees, cable TV and airline surcharges, as well as bank-overdraft fines.
“Each year these junk fees that companies charge cost Americans tens of billions of dollars, weighing down family budgets and making it harder for people to pay their bills. So my administration is taking action on to eliminate those fees,” Biden said.
He was joined by the president of the consumer-advocacy-group Travelers United, Charlie Leocha, who sounded a familiar complaint. “We find it unfair and deceptive for hotels to advertise one rate and charge another. It comes down to basic truth in advertising.” He said his group had been working under the radar with the White House “for several months.”
Now, why are we dubious about anything happening?
First, the hotel industry, with its huge lobby, will probably plead continuing hardships due to the pandemic, even though room rates are through the roof and casino companies in particular are recording record profits.
Second, the Congressional Gaming Caucus, which does the casino industry’s bidding in Congress, is certain to try to block any such legislation.
Third, the casino industry will cling to resort fees like the Holy Grail, now that it's making more money off rooms than ever before. Why give any of that back to the consumer, especially when hotel guests have shown themselves to be completely indifferent to exponential hotel-rate inflation during the resurgence of places like Las Vegas, Atlantic City, and Biloxi?
Fourth, President Biden instructed the Federal Trade Commission to investigate resort and other hidden fees and the FTC did vote to begin working on a rule process that would eliminate and/or prevent the junk fees. But the cogs and gears of the bureaucracy crank and grind along slowly, especially over announcements made right before a big election that, as mentioned, are sure to sustain blowback from Big Industry lobbyists. As such, we anxiously await, but aren't holding our breath for, word on when this process will happen and what impact it might have on Las Vegas.
Fifth, a number of actions have been initiated over resort fees in the last several years. In July 2019, Washington, D.C., sued Marriott Corporation for violating the Consumer Protection Procedures Act and in September of that year, the Hotel Advertising Transparency Act was introduced in Congress. In March 2021, Travelers United sued MGM Resorts for deceptive fee practices. If anything ever came of these efforts, we haven't heard about it. (If you have, please enlighten us in the comment boxes.)
Sixth, in terms of some of the other "junk" fees, such as airfare, our understanding is that the airlines pay taxes on the ticket prices, but not on the "hidden" fees, so the government has an ulterior motive not to rescind them, which would cost it tax revenue.
Besides, even if resort and the other fees are quashed by the feds, the hotels and airlines will simply raise their rates to make up for the "lost" revenue and with all the pent-up demand continuing far longer than most observers (including ourselves) anticipated, consumers will pay them (as we do and must when we travel).
Or worse, the hotel industry will come up with some other non-transparent charges to replace the "resort" fee, which has been successful for nearly two decades. So whatever is introduced in its place should have a nice long run as well.
Bottom line: No, we're not investing hope that the Biden administration will have much, if any, impact on this odious practice.
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Kevin Lewis
Nov-05-2022
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David Miller
Nov-05-2022
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Dave_Miller_DJTB
Nov-05-2022
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[email protected]
Nov-05-2022
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Ken Orgera
Nov-05-2022
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Leonard Accardi
Nov-05-2022
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MannyB007
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Jackie
Nov-05-2022
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Raymond
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Louis666
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Roy Furukawa
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Doc H
Nov-05-2022
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rokgpsman
Nov-05-2022
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Doc H
Nov-05-2022
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rokgpsman
Nov-05-2022
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Wilbur Kookmeyer
Nov-05-2022
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Doc H
Nov-05-2022
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rokgpsman
Nov-06-2022
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Diamonddog2801
Nov-07-2022
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