The Business Travel Coalition has welcomed a crackdown by US competition authorities on hidden fees, or “drip pricing”, imposed on hotel guests.
It is calling for similar action against airline ancillary fees and has launched a petition in an effort to get action from the White House.
The US Federal Trade Commission sent warning letters to 22 hotel groups over mandatory extra fees which can be as high as $30 a night.
It conducted a review of online hotel booking websites and found in many cases that “total prices” often only includes the room rate and taxes.
“These practises violate the law by misrepresenting the price consumers can expect to pay for their hotel rooms,” the FTC letter says.
“We believe that online hotel reservation sites should include in the quoted total price any unavoidable and mandatory fees, such as resort fees, that consumers will be charged to stay at the hotel.
“While a hotel reservation site may breakdown the components of the reservation estimate (e.g., room rate, estimated taxes, and any mandatory, unavoidable fees), the most prominent figure for consumers should be the total inclusive estimate.”
The FTC’s letter says: “One common complaint consumers raised involved mandatory fees hotels charge for amenities such as newspapers, use of onsite exercise or pool facilities, or internet access, sometimes referred to as ‘resort fees’.
“Specifically, consumers complained that they did not know that they would be required to pay resort fees in addition to the quoted hotel room rate.
“Several stated that they only learned of the fees after they arrived at the hotel, long after making a reservation at what they believed to be the total room price.
“Others paid for the reservation in advance, and only found out after they arrived at the hotel that they would have to pay additional mandatory fees.”
The Business Travel Coalition says similar hidden ancillary fees imposed by airlines “represent an unfair and deceptive marketing practice” that is costing all air travellers dearly.
Chairman Kevin Mitchell said: “BTC this week launched an official White House petition-campaign requesting that true air travel comparison-shopping be restored for consumers. The coalition has until December 25 to secure 25,000 signatures.
“If successful, then the White House is committed to formally reviewing this request and providing a public response.”
The US Department of Transportation must require airlines, via a rulemaking, to provide fee information to sales channels where they offer base fares so consumers can see, compare and buy the complete air travel product, added Mitchell.