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Resort fee folly

January 11, 2006

Q: I recently bid on a room in Scottsdale, Ariz., through Priceline. I requested a Category 3 or Category 4 room, but Priceline “upgraded” me to a resort-category property, the Scottsdale Plaza Resort.

When I checked in, I was told I would have to pay a $10-per-day resort fee to cover the use of the pool, exercise facilities and the “free” newspaper. I wanted to leave the hotel rather than pay the fee, but I had already paid for the hotel, and Priceline’s hotel rooms are completely nonrefundable.

The resort flatly refused to waive the fee. So I called Visa to dispute my credit-card charge. To my amazement, Visa gave me an immediate and unconditional credit for the resort fee.

So here’s something I don’t understand: How can Priceline give me a resort when I asked for a hotel and then force me to pay for a resort fee? And why did I have to go to Visa to get my money back? Don’t you think that is wrong?

– Tony Landler, Rosemead, Calif.

A: Let’s see: You didn’t get the hotel you asked for and had to pay a fee you weren’t expecting. I would say there’s something very wrong here.

As usual, the lawyers have issued a license for these travel companies to do what they’ve done. Priceline’s terms and conditions state that “you may also be charged resort fees or other incidental fees, such as parking charges.” These charges are payable by you at checkout.

Same goes for the Scottsdale Plaza Resort. Buried deep in its Web site, it warns that its rate “does not include resort fee of $10 per day.”

I asked Priceline about its hotel assignments and possible resort fees.

“If we can’t find a hotel in the star category you select that is willing to accept your price, we will look in the star category above the one you selected to see if we have any luck there,” said Brian Ek, a company spokesman. “The assignment of a Priceline hotel is luck of the draw. Some properties charge resort fees.”

In other words, if you bid on a Priceline room, you’re not always “naming your own price.” The hotel gets to add a resort fee to your bid, if it wants to.

I would not be as upset with Priceline as with the hotel. Any property that charges resort fees is not only lying to its guests but also is poorly managed.

Why is it lying? The hotel claims the fees cover the use of such amenities as exercise rooms, the pool, the in-room coffeemaker or the “free” newspapers. But guests who insist they didn’t read the newspaper or go to the hotel gym are not let off the hook at checkout.

I’ve talked with enough hotel employees and consultants to know that the fees generally go straight into the hotel’s coffers. They are nothing more than a hidden rate increase designed solely to boost profits.

What does that have to do with management? Well, if a hotel is really well managed, it can easily cover all its costs within its quoted room rate; there is no need for surprise fees. The only other explanation, of course, is that the hotel is greedy.

I don’t know which is worse: mismanaged or avaricious.

It would be one thing if you had chosen the hotel and had been adequately forewarned. But you didn’t, and you weren’t. Fortunately, Visa saw things your way and offered you an immediate refund.

I understand why you think that resort fees are fraudulent and why you feel that your hotel should drop them immediately. But I also believe Priceline needs to revise its system to allow its guests to opt out of a hotel that charges resort fees – at the very least, guests like you who are involuntarily “upgraded.”

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

9 comments

  • http://members.aol.com/ajaynejr Allan J.

    I have just two words for helping out with this problem using Priceline, Hotwire, etc.

    Bid insultingly.

    This way, even with extra fees, the total price will almost always be lower than the lowest discount prices in the vicinity.

  • http://kallawgroup.com mitch kalcheim

    I am a consumer class action lawyer in Los Angeles who has been working on a Priceline case for approximately 3 years. I would very much like to discuss the details of what happened to you during your transaction with Priceline. My contact information is below. I look forward to hearing from you

    Mitch Kalcheim
    KALCHEIM LAW GROUP, P.C.
    9300 Wilshire Boulevard, Suite 508
    Beverly Hills, CA 90212
    Tel: (310) 461-1210
    Fax: (310) 461-1212
    Mitch@Kallawgroup.com

  • James Miller

    I had the same problems. I used priceline to book a reservation for my honeymoon. Then when I get to the hotel I find out I have to pay $20 a day for bottled water, SELF Parking, Pool, Excercize room, and Internet. My room was $90 a night but then ad over 20% on top for hotel fees.

    I felt really burned that they hit me when I’m so vulnerable. Its not like I can tell me new wife, never mind lets go home, or lets go stay in the Motel 6 for $40 and no resort fee. Way lame.

  • Benay Karp

    Today I tried the “name your price” option. What a mistake. I placed a request for North or South strip in Las Vegas. I was given the Trump Hotel, which is NOT on the strip, it is almost two blocks from the strip. I did not, nor do I now want this accommodation. I am not capable of walking that distance, and would have to take a cab wherever I went. Not only that, but I could have booked the Trump myself and gotten a better deal on my own. They offer $50 spa credit for every night you stay, AND I could cancel my stay up to 72 hours before the trip. William Shatner says you can get 40% off the hotel rates. NOWHERE does it say you’ll pay MORE if you use Priceline.
    I am incredibly unhappy. I need a room on the strip. I DO NOT want this reservation. I feel like this company pulled a trick play here. I have always told my friends and employees to use priceline because I thougth you got good deals. I will NEVER do business with them again, and I will be sure to tell everyone what a scam this company is.

  • Firedog

    Resort fees are deceptive and disgusting, but probably legal since they are disclosed (often in fine print) and you can take your business elsewhere.

    Priceline, however is acting illegally; making a contract between the hotel and bidder without providing both parties with the specifics of the deal prior to acceptance . PL warning of a resort fee ahead of time isn’t enough. The amount must be disclosed before acceptance for the contract to be binding. PL can you hear the class action lawyers knocking?

    PL has a simple fix.
    If a bid is accepted by a resort fee hotel, disclose the amount of the fee and let the bidder accept or reject the deal.

    PL won’t make changes unless bidders act.
    1. Every time your bid is accepted with a surprise resort fee, call PL and tell them you want to cancel. They won’t, but they count the calls.
    2. If you can afford it, call the hotel and try to cancel the deal. Tell them why. Document everything. Don’t stay there.
    3. Call you credit card company and start a dispute. If you are in good standing, the cc company will offer to pay your resort fees or even the unused lodging so as not to kill the goose (PL)
    4. Take it if you must. If you refuse, I believe they will have to charge back PL and give you credit. Either way, with enough calls it will change.

  • Carver

    @Firedog

    Unfortunately, some of you suggested won’t work.

    In order

    1. If you know that the hotel might charge a resort fee and still bid, it’s on you. That’syour tough luck. You chose to purchase a product without knowing all of the details. Unless the amount of the resort fee is unconscionable, you’re SOL.

    2. Calling the hotel won’t do anything. The room has been sold to priceline.

  • Firedog

    @Carver

    I just got notice from AmExpr that PL did not answer my dispute over an undisclosed resort fee. PL was charged back and I was refunded the full $92.17. Trust me this is not a PL oversight. They choose not to contest it, because there policy is indefensible in court and they want to protect the hotel’s who tack on these undisclosed fees. Those hotels undoubtedly take a very large % of the bids. In this case, a 2* bid was snatch by a resort (with a big resort fee).

    The resort fees are not the issue. The hotel can charge anything they can get away with, as long as it’s disclosed and accepted BEFORE the contract is locked. PL’s “Name you own price” bidders have no disclosure of the AMOUNT of this mandatory charge to be added to their bid. That AMOUNT is known by both the hotel and PL and could easily be disclosed .
    PL vague warning that some hotel charge resort fees is insufficient, without limits and unfair to vast majority of hotels that only charge the bid amount(plus a known tax).

    I’ve had many years of hotel success with PL and will continue to bid. I will not pay resort fees unless the details are disclose before the lock. If a hotel with resort fees takes my bid, I will notify them I am canceling and tell them why. I will do the same for PL. Their reps will tell me “I am not authorized waive the resort fee or accept cancellations and I won’t let you speak to anyone who is”. I will document everything, book a honest hotel, and then get a refund from my credit card company.

    I’m sure I’ll win each time, but this policy won’t change if it’s only me.

  • Muellergraphics

    Thank you for exposing the fraud of these hotels that charge a ‘resort fee’. It is unethical to require more money from people once they purchased the hotel. It’s clearly deceptive and aimed at taking advantage of people. It’s unfortunate that our laws are not protecting citizens from this practice. Where does it end? Oh, you didn’t know we also have a bathroom fee and a lobby fee, and a this and that fee. Call it whatever you want, it’s unethical. The price advertised should be the exact price you pay. No surprises. An agreement is an agreement. 

    It sounds like the best bet is to do a charge back on the credit card each time this happens. I hate these Vegas hotels and will never do business with them or send business their way and will do everything in my power to stop their success, as long as they deceive people with their non-disclosed, but mandantory fees.

  • Erikamercado80

    The same thing just happened to us. Booked 3 rooms at a bid for $55 a night/ 2 nights. Now will have to pay 19 dollar “resort” fee. I bid on a 3.5 star hotel not a resort. How can I dispute this?

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