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Question of the Day - 05 November 2022

Q:

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.

A:

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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Comments

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  • Kevin Lewis Nov-05-2022
    And of course...
    When the Republiwhatsits take control of the House and/or the Senate, they'll stomp that legislation into the dust, simply because it's something Biden wants. The ideological shibboleth of their being the party of big business will also play a part, but the primary reason for their refusal will be, to quote Captain Kirk and Commander Kruge in Star Trek III, "No." "But why?" "BECAUSE YOU WISH IT."

  • David Miller Nov-05-2022
    I Doubt It
      The timing of this announcement is dubious at best. This administration has been in control since Jan 2021 and suddenly, less than 2 weeks before the midterm elections this announcement is made. Sounds like an attempt to get votes. If they really had wanted to do this they had 21 months to start. This is nothing but a ruse.

  • Dave_Miller_DJTB Nov-05-2022
    It will actually HURT consumers
    Obviously, if fees like resort fees are eliminated, the base price will rise to cover the difference. 
    
    Except the base price will rise to also cover the extra commissions that will need to be paid. 
    
    Currently, third party booking agents, like Expedia, etc., get a percentage of the base price only. If the base goes up, their cut goes up too. Since the commission is about 25%, eliminating a $40 resort fee will result in a base price increase of $50!
    
    Nobody wants that!

  • [email protected] Nov-05-2022
    Widespread
    This site, understandably, focuses on the casino hotels, but resort fees have been around for a long time.  In fact, Las Vegas and other gaming destinations were late to the party.  Places like Miami Beach, Colorado Springs, Coronado Island, Hilton Head, etc., were charging resort fees for years before any of the casino hotels started.
    
    While it's ridiculous for high priced hotels to charge extra for things like wifi that cheap hotels provide for free, given that they do the resort fees can actually be a good deal.  For example, staying at a resort hotel with mandatory valet parking and extra charge for internet, workout room, etc., I've often found that the resort fee was less than one would pay for those services a-la-carte.
    
    If hotels do raise their rates they'd likely still charge xtra for wifi.
    
    That said, casino hotels are often the best deal since fees are generally waived for invited guests, which I expect virtually everyone who reads this site are.

  • Ken Orgera Nov-05-2022
    Free Enterprise
    Consumer needs accurate information for the free enterprise system to work at its best. In addition to competition.  Resort fees clouds the system.  Yes the price will be higher!  But you then make your choice based on apples to apples!  Dont drink the kool aid.

  • Leonard Accardi Nov-05-2022
    Optional, Not Mandatory
    None of the answer or responses considered the fact that with current resort fees, price comparisons of hotel rates are misleading and difficult to say the least.  To me, this is a truth in advertising problem.  It is also a fact that resort fees are mandatory, not optional, and they include things like bottled water and use of the gym that most people are not interested in.  Making resort fee items individually optional would be a more appropriate solution to the problem.

  • MannyB007 Nov-05-2022
    Resort fees
    Basic economic principals state that the resort fees will be added to the daily rates if legislation is passed to forbid them. My problem with resort fees is that they are inherently dishonest and misleading. Third party booking agencies quote the hotel rates not including the resort fees, thereby allowing rooms with resort fees to be posted as cheaper. That's dishonest and in my opinion violates fair trade practices. Although, resort fees may be a "deal" for some, many people don't use the amenities the hotels claim they are charging for.  So many consumers are paying for services they don't even use. Does legislation on resort fees have to originate at the federal level? I'm not sure that is the business of the federal government anyway. Why can't the states develop anti-resort fee legislation? Lastly, as a consumer, we have the power to make change without legislation.  STOP GOING TO RESORTS THAT CHARGE RESORT FEES! If their business drops enough, they will get the message.

  • Jackie Nov-05-2022
    Here's a thought
    You go to vote Tuesday.
    
    Or sit on your ass and don't vote.
    
    Either way THEY win!
    
    WHY?
    
    Because you repeat the insanity ad nauseam.
    
    WHAT!!
    
    Continuing doing the same thing over and over expecting different results is insanity!!!!
    
    So never again vote for anyone who is a Democrat or Republican.
    
    If any other person is on the ballot for the same office and is not a Democrat or Republican, VOTE for that person.
    
    WHY?
    
    Because it scares the hell out of the duopoly whenever the voters rebel.
    
    The only choice left to them is to either obey the voters or perish.
    
    Our Constitution was created to be by the people for the people.
    
    The "People" have allowed it to be by the wealthy for the wealthy!
    
    FIGHT BACK.
    

  • Raymond Nov-05-2022
    Either Way We Pay
    David Miller is right--If the "resort fee" is  eliminated, the base room rate will be raised, with the resort then paying more in booking fees to Expedia, Priceline, etc.  OR the resorts will start nickel-and-diming, charging for the services used a la carte--so much for parking, so much for Internet, so much for the pool, so much for the fitness center, and those who use the services will pay more, I assure you.
    
    This is a blatant political play, given the timing so close to the (thank God it's almost past) election.  Kevin Lewis blames the Republicans (who are hardly choirboys), but I didn't see any action on this over a decade ago when the Democrats had the White House, House, and Senate, while the Republicans did nothing when they had all three just a few years ago.  The only difference between the parties is the things they whine about while doing little.

  • Louis666 Nov-05-2022
    resort fees
    Of course hotel rates will go up if resort fees our elimanated. But because rates will be transparent they are not as likely to go up as much as fees where. Using the wholesalers as an excuse for chsrging resort fees is ridiculous.  The wholesalers sell excess inventory the hotels actually need them because they increase profits  over an empty  room. I only stay at Four Queens or Apache because of this. But not holding my breath for things to change.

  • Roy Furukawa Nov-05-2022
    Not Gonna Happen
    I think there's too much money/laws/lobbyists for anything to happen. I think there shouldn't be any add on fees unless it's for specific tangible items, otherwise they have to just add it to the room rate. I stayed at Hyatt and they called it a "destination fee" and I am sure it was for nefarious purposes they renamed what was basically a resort fee.

  • Doc H Nov-05-2022
    joke
    So the priority now with all the problems in this nation is resort fees by this crew? I and the nation are waiting for the clown circus to get our gas prices low by increasing domestic production and not cutting off supplies like pipelines with the green insanity so we have to beg other nations for gas with fist bumps, return to world peace where nations wouldn't think of invading other nations, not being the joke of the world, stop defunding police in many cities, return to locking up thugs without this no bail nonsense crime, should have stopped inflation long ago by wrongly calling it "transitory" and kept spending like drunken sailors and now in crazy interest rate hike insanity to stop it and on and on and on. But oh yeah, resort fees, that as many have stated the obvious it would be just smoke and mirrors and just padded back into the total room cost. And lewis is worried about the "republicwhatsits" with his buddies in full control the last 2 years. IQ tests for voters, please.

  • rokgpsman Nov-05-2022
    Gasoline price not so bad
    Gasoline price in my area is about $3.25 and has dropped quite a lot from the $5+ days, so it's not a major source of inflation to me. In fact I consider $3-$4 to be a fair price, in many modern countries gasoline in $6 to $7 per gallon, in Hong Kong it's over $11 per gallon. We Americans often forget that it's a big world out there and we're just a small part of it,,,and we're certainly not the only people dealing with problems. Try buying meat at a modern grocery store overseas, much higher than here, inflation is a worldwide problem, no way our petty USA politics is influencing prices all over the planet. There are many global factors at play, and the USA is only 4% of the world's population. We're not the big dog of the neighborhood and should be careful not to act like we are, lest we get our asses handed to us. 

  • Doc H Nov-05-2022
    paddle
    So rokgpsamn is in the same boat paddling down the river of denial with lewis. How cute. And I suppose you'd say that illegal alien who stabbed and killed 2 people on the strip recently with our wide open border policy courtesy of your crew is what, people die anyways, who cares? Tell that to the parents and family and spouses of those stabbed by that alien. btw, gas prices here in Las Vegas are still close to $5, dropping temporarily courtesy of the reserves that are being tapped for election day follies btw. And your justification of energy $ is amateur. The US can be energy independent, and we were, until the current crew took over. But glad you're doing well rokgpsman. You may justify the rampant crime, open borders, inflation, botched energy policy that is hurting lots of Americans at the gas pump, food, housing with interest rates, but suggestion: maybe think beyond yourself sometime, have a little compassion for the majority who are hurting and don't accept this garbage.  

  • rokgpsman Nov-05-2022
    @Doc H
    Piss off doc-shit.
    You don't know me or anything about me. You're just a loud-mouthed jackass that presumes to have all the answers. All you have are opinions from your little perch, you've likely become a embittered old white person that sees your entitled way of life declining. You're exactly why there's no compromise between hardliners on either side. Once the other side gains control we'll see how useless they are at solving today's problems. 

  • Wilbur Kookmeyer Nov-05-2022
    Old America
    “The most terrifying words in the English language are: I'm from the government and I'm here to help.”
    ― Ronald Reagan

  • Doc H Nov-05-2022
    angry peep
    Rokgpsman, a little bitter there when someone doesn't share your view, expresses something different than your world view it seems. Of course we all have views that we share here. If you share your view and you don't like the view of someone who differs and get into a name calling nasty swearing hissy fit, perhaps posting on such forums isn't your game. As for the "other side" taking control, as I've repeated many times, I trust neither side frankly, so your assumptions are wrong. I'm not a team player like yourself it appears. The best outcome these days is one crooked side keeping an eye on the other crooked side imho. As for making blatant racist comments on my skin color, well, ok, but yes, "my way of life", including 70% of the nation who thinks the nation is on the wrong track on crime, open borders, homeless matters out of control, runaway inflation, sure, I and any other rational person, no matter their age, 70% say enough to "this way of life" that you apparently are ok with. 

  • rokgpsman Nov-06-2022
    DJT- I love the poorly educated.
    Doc-
    Inflation is everywhere in the world, it’s not just in America. I won’t waste time trying to teach you about it, your mind is closed to anything outside of US politics. All major countries have had large inflation the past 2 years. Do a little research and you’ll see this. Worldwide inflation cannot possibly be caused by our government, no one country has that amount of influence. So other things are at play, like covid that caused all countries to print and spend billions trying to deal with it. That’s the very definition of inflation, spending money you don’t have. It wouldn’t have mattered who was US president or which political party controlled Congress, inflation would still have happened.
    
    And if you don’t like my posts simply skip over them. I’m as old and white as you are, but I'm not filled with hate blaming others for what’s happened to this country. All your posts shows you lashing out to someone. Your idea of free speech is narrowed to only what you agree with. 

  • Diamonddog2801 Nov-07-2022
    UK 11%
    To confirm - I live in the UK. Inflation is 11%. And rising.