Expedia has joined Booking.com in taking action on the ‘resort fees’ that many hotels now charge, even if they are not resorts and provide no real service for the fee. But Expedia is taking a different tack.
While Booking.com has told hotels it will now charge commission on the fees as well as the room rental, Expedia has notified hotels that it is weighting its listing algorithm to push hotels that charge the fees lower down the list. Hotels like the fees in part because up to now, they have not paid commissions on them, and because not including them upfront makes room rates look lower.
The spread of the rates, originally imposed by resorts to cover actual resort facilities and services has led to serious backlash from consumers—especially those who don’t find out about them upfront—and from consumer advocates. A bill is making its way through Congress that would ban them.
The actions by Expedia and Booking, both industry heavyweights, may help reverse the trend by taking away the incentive.
