Marriott pledges to unmask ‘resort fees’ in AG deal

In what’s being hailed as a win for consumers nationwide, Pennsylvania’s attorney general announced a settlement with Marriott International under which the hotel chain agreed to include any mandatory “resort fees” in advertised room rates nationwide so consumers can better compare prices of a hotel stay.

Resort fees — which have become increasingly widespread over the past 20 years — have been bashed by consumer advocates as a sneaky way for hotels to raise prices.

The fees — which are tacked on to the room rate and can run as much as $40 or more per night — ostensibly cover amenities such as Wi-Fi, local phone calls, beach chairs, and access to pools and fitness facilities.

The rub is that guests are required to pay the fees whether they use the services or not.

Attorney General Josh Shapiro’s investigation focused on “drip pricing.” Under the method, fees are gradually disclosed to consumers as they go through the booking process. Customers often don’t learn the total price until the last page in the process — or sometimes until they check in.

Shapiro argued that the pricing model is deceptive and a violation of Pennsylvania’s consumer protection law. As part of the settlement, Marriott denied any wrongdoing.

“Hotels shouldn’t be able to slap hidden fees on top of your bill at the last minute, and thanks to this settlement we’re putting the hotel industry on notice to put an end to this deceptive practice,” Shapiro said in a statement last week.

Under the agreement, Marriott committed to prominently disclose the total price of a hotel stay — including room rate and all other mandatory fees — on the first page of its booking website as part of the total room rate. The company has nine months to implement the changes.

“With costs going up and more seniors and families traveling for the holidays, consumers should be aware of these surprise fees when booking,” Shapiro said. “Marriott has stepped up to commit itself to fix this practice and we expect more hotel chains to follow suit.”

Travelers United, an advocacy group that is suing MGM resorts for similar practices, called the settlement the first real win in the more than decadelong battle to get hotels to be more transparent about resort fees — also called “destination” or “amenity fees” — and other mandatory fees.

“When travelers look at the Marriott International Inc. website, they can find room rates that include all mandatory fees. Consumers will finally have room rates that are honest,” Travelers United wrote in a blog post.

Shapiro commended Marriott for being the first major hotel company to formally commit to disclosing resort fees as part of the initial advertised price. That practice should be considered the industry standard going forward, he said.

Shapiro’s office wouldn’t comment on whether other lawsuits or investigations were in the works against other hotels.

“We encourage other chains to step up and provide this same transparency for consumers,” a spokeswoman wrote in an email.

In a statement, Marriott International said it has “long been committed to making sure that any resort/destination fees charged by hotels in the U.S. are separately and clearly stated. Our agreement with the state of Pennsylvania further enhances the way resort/destination fees are fully disclosed on our U.S. channels.

“We will be working over the next several months to update the room rate display in accordance with that agreement.”