On December 12, 2023, Mark S. Adams, Hotel Dispute Lawyer, was a guest on the Hotel News Now podcast where he discussed the effects of mandatory fee disclosure litigation in Pennsylvania on the hotel industry.
Consumer advocacy groups, law firms and federal and state governments have begun to push back on hidden resort fees, which are often not disclosed until customers near the end of the booking process. Resort fees are charged in addition to hotel room rates and can include things like amenity fees and destination charges.
In Pennsylvania, the state's attorney general reached settlement agreements with Omni Hotels & Resorts, Choice Hotels International and Marriott International over their fee disclosure practices. According to Adams, the main objective in these cases was to ensure full transparency. If a hotel has a mandatory fee, they will have to let customers know upfront.
"I see the impact as being multifaceted," explained Adams. "One, it's good for the consumers because you know what you're buying. Two, I think it's actually good for the industry."
He went on to explain that because some of the biggest hotel brands have become compliant with full disclosure, the smaller brands will get on board.
"You will see people that voluntarily comply because they don't want to be a target," said Adams.
He also mentioned the recent order signed into law by California Governor Gavin Newsom. This new law imposes a sweeping ban on pricing goods and services without including all mandatory fees or charges. Adams discusses this law and it's effects in detail in his recent article, "The Final Check-Out: Bidding Farewell to Undisclosed Mandatory Resort Fees," published by the Hotel Business Review.
He pointed out the Hotel Advertising Transparency Act of 2022 and the Hotel Fees Transparency Act which are pending in Congress. These bills would prohibit hotels from advertising room rates without including additional mandatory fees and establish federal guidelines for advertising. Adams believes these bills will make their way to President Biden's desk and that he will sign them when they do.
"I think we are going to see the end of undisclosed mandatory fees," said Adams. While he is not against resort fees, he believes upfront disclosure will allow consumers to make an informed choice when making a booking.
You can listen to the full podcast episode here.
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