Fee for All: The War on Hidden Travel Charges

While President Biden attacks “junk fees” through his election campaign, planners and pundits weigh in on how the extras add up

In his State of the Union Address, President Joe Biden took aim at the universally unpopular dynamic of “junk” fees: what the 2024 presidential candidate called, “those hidden surcharges too many businesses use to make you pay more.”

“For example, we’re making airlines show you the full ticket price upfront and refund your money if your flight is canceled or delayed,” Biden said.

“We’ve written a bill to stop all that. It’s called the Junk Fee Prevention Act. We’ll ban surprise ‘resort fees’ that hotels tack on to your bill. These fees can cost you up to $90 a night at hotels…that aren’t even resorts.”

The President concluded by saying “Americans are tired of being played for suckers,” and asked for the Junk Fee Prevention Act to be passed.

Acting Up

S.916 is the Junk Fee Prevention Act which was introduced to the Senate in March by Sens. Richard Blumenthal (D-CT) and Sheldon Whitehouse (D-RI) and has yet to be voted upon in either the House or the Senate. “Concealed surprise fees—nickel and diming Americans to distraction—must be stopped,” said Blumenthal on his introduction of the bill. “Airline travel, concert going, common purchases—seemingly almost everywhere— consumers are compelled to pay hidden excessive charges. Our bill will help end this price gouging—forcing full disclosure upfront and restricting abusive fees. It will mandate basic common sense fairness and transparency, which consumers rightly demand and deserve.”

The bill would also theoretically apply to hotel “resort” and other fees which can make a meeting planner’s job more complicated and fraught with, “Why didn’t you tell us” and “No one mentioned this” reactions.

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Christopher Elliott, founder of Elliott Advocacy and a columnist for USA Today and Forbes, says, “I think any law banning junk fees stands a fairly good chance of passing the Senate. But it may not make it through the House. There are too many corporate apologists in the House who would try to stop the legislation.”

Lynn Edwards, the Washington-based owner of Proper Planning, sees the frustration first-hand. “Our partnerships with hotels are based on pricing transparency,” she says. “Many additional/unexpected fees are showing up. If the client and the guests are not informed of these additional fees, it can be a cause for great customer dissatisfaction. Many event guests are not even able to take advantage of the benefits covered by these fees. The key is clear advanced and written pricing so there are no financial surprises.”

Fee Foe: Airlines in the Mix

From the very start of their meetings journey, participants may be faced with unexpected hits to the wallet. Airlines are increasingly adding new charges to consumers’ ticket prices. The process started over a decade ago and was spun by marketing executives as “bundling,” with the concept of “paying for choices” as a plus. You get lower airfares and the “bonus” of adding on choices for “extras” like baggage fees, choice of seat, and rebooking privileges.

Nowadays, air passengers can assume that none of these “extras” are included in their tickets unless they are requested and paid for. Even carry-ons are now up for grabs in the “extra” haul for airlines with a constant threat that that last freebie will soon be gone for all but the highest-paid tickets.

The current FAA authorization bill includes a provision based on the Junk Fees Prevention Act to prohibit airlines from imposing family seating fees for young children but rolls back other benefits to consumers in omitting previous in-place language.

William J. McGee, senior fellow for aviation and travel at The American Economic Liberties Project, says, “The airlines love to obscure the bottom line price of a booking, and they’ve been fighting fare and fee transparency for decades now. The full-fare advertising rule currently in place by the DOT has worked effectively for years, and the airline lobby is attempting to undo it and turn back the clock. It’s critical that when shopping for flights travelers see the full price of a ticket, inclusive of all mandatory taxes and surcharges and all the junk fees the airlines love to pile on. Sticker shock is real, and your travel budget can take a real hit if you’re not given all the fees up front.”

Hotel Sticker Shock: When Add-Ons Add Up

We’ve all experienced it. You get a hotel bill and extras are added that you had no idea you’d be paying: an early check-in fee, a dreaded “resort fee” and even a “charity fee.”

On a recent Smart Meetings webinar, presenter Cheryl M. Payne, CMP, CMM, strategic partner at INNOV8 Meetings and Events even detailed a meeting where a client was charged an additional fee for electrical usage in a meeting room.

Although the subject of “resort fees” has been debated back and forth and litigated (most recently by Marriott and the State of Pennsylvania), the issue is still very much in play and affecting customers’ wallets.

Lauren Wolfe, founder of the website, KillResortFees.com, says, “I went to New York City recently and specifically thought I wasn’t going to be charged a resort fee but they added a $40.00 ‘amenity fee’ as well as a ‘charity fee.’ I had absolutely no idea I was going to be charged. They said nothing, there was no mention of it. I booked on a third-party site which had no mention except, ‘this hotel can charge a resort fee.’”

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Wolfe started Kill Resort Fees.com in 2016 but also works as council for Traveler’s United, an advocacy organization based in Washington, D.C.

“We’re actively advocating for people to support the Junk Fee Bill,” she says.

In response to a query from Smart Meetings on resort and other hotel fees, Chip Rogers, president and CEO of the American Hotel and Lodging Association (AHLA) responded, “Only 6% of hotels nationwide charge a mandatory resort/destination/amenity fee, at an average of $26 per night. These fees directly support hotel operations–including wages and benefits for hotel staff–and when they are applied, hotel websites clearly and prominently display them for guests during the booking process, in accordance with FTC guidance.”

Many lawmakers understand this, and so do recent hotel guests, 80% of whom are willing to pay for hotels with resort fees if the amenities are worthwhile, according to a Morning Consult survey on behalf of AHLA.

“They [AHLA] are selectively using their words,” counters Wolfe. “If you’re in Miami or Las Vegas you’re looking at an 80% to 90% likelihood you’re going to get charged a resort fee,” she said.

“They are throughout New York City and Los Angeles. We’re even seeing them come up in Detroit. If you look at the people defending them in Congress, they are people bought and paid for by the hotels. If you look at who is donating to their campaigns, it is one hotel after another.”

“This is not a Democratic vs. Republican issue,” Wolfe emphasizes. “It’s a pocketbook issue that every American knows and cares about.”

Rogers assured meeting planners that “Hotels will continue to work with the Biden Administration, the FTC and lawmakers to ensure that the same standards for fees display apply across the lodging booking ecosystem, including for hotels, as well as online travel agencies, metasearch sites and short-term rental platforms.”

Jan Freitag, national director of hospitality analytics at CoStar Group, weighs in:  “More transparency is always better for consumers. The full availability of all associated fees with a stay early in the booking process should be in the operator’s best interest as well as it avoids ill will from the consumer side.

“In general, where a hotel or an operator provides a value above and beyond what the room rate covers a fee might be justified, but this comes back to clear communication up front so all parties involved know what can and cannot be expected during a stay.”

This article appears in the digital-only July and July/August 2023 issue. You can subscribe to the magazine here.