Hyatt is the latest hotel operator to be faced with consumer lawsuits over ‘resort’ or ‘destination’ fees slipped into hotel room total prices but not disclosed at the beginning. Travelers United, a consumer advocate group, has filed a suit in Washington, D.C., where, the suit says, the practice is prohibited by local law.
The suit, filed as a class action against the Grand Hyatt Washington, says that the hotel charges a $20 per night ‘destination fee’ which is not listed as part of the room price when rooms are booked on Hyatt’s website, and that the company “has been systematically cheating consumers out of tens, if not hundreds, of millions” each year.
The issue of these fees and other ‘junk fees’ has faced mounting consumer unrest and legislation, including the Biden Administrations proposed Junk Fee Prevention Act, introduced in Congress in March.
Other companies involved in recent lawsuits or settlements include Hilton and MGM Resorts, Booking.com and Marriott, which in 2021 signed a deal with the Pennsylvania Attorney General that it would include the fees in its room rates, at least in Pennsylvania.
The whole concept of a ‘destination fee’ leaves me speechless. Whilst some local authorities in various European countries charge tourists a small fee (‘bed tax’) per day, this has nothing to do with the accommodation providers and you pay separately. You often get something in return, too, such as reduced entrance charges for some attractions – or small gifts, like bottles of wine. The fees in the case referred to appear to be merely a bonus payment to the shareholders. I am surprised that there is no current federal law against such practices.