(NEW YORK) — Junk, resort, destination, urban, and amenity fees are pseudonyms for the mandatory, often unexpected surcharges you might find tackled on your hotel bill. According to the Council of Economic Advisers (CEA), these fees cost Americans nearly $3.4 billion annually and despite recent bipartisan efforts by the Biden administration to combat junk fees entirely, they still seem to pop up when it’s time to pay for your stay.
“The consumer is the loser” when it comes to junk fees, Clint Henderson, managing editor at The Points Guy, told ABC News’ Good Morning America.
The value of what’s being delivered has fallen dramatically for consumers, who are now paying all-encompassing fees for erroneous line items such as Wi-Fi, phone calls, fax machines, towels, beach access, breakfast, parking, fitness centers and more — the list goes on, and “it’s getting hard to keep up,” Henderson said.
“The consumer can only take so much of these [fees] before they break,” said Henderson, adding that “spending hundreds of dollars more on a seven-day holiday can make the cost of travel out of reach for some people.”
Depending on the type of accommodation and length of stay, consumers can expect to pay an average of $38.82 more per night at hotels that charge resort fees, according to a 2024 analysis from NerdWallet.
The push to eliminate junk fees
Overwhelming ‘fee fatigue’ among Americans has led to increased regulatory scrutiny at the federal and state levels. The House of Representatives passed in June the No Hidden FEES Act, which would create federal guidelines for being transparent about hidden costs at stays and the Federal Trade Commission (FTC) would pursue those who are in violation.
“Americans are tired of being played for suckers,” said President Joe Biden during his February State of the Union address in which he announced his administration’s proposed Junk Fee Prevention Act aimed at eliminating hidden fees and encouraging customers to fight unfair charges.
In October, the FTC proposed a rule to prohibit hidden and bogus fees in all sectors of the U.S. economy, including hotels and short-term lodging.
At the state level, California’s SB 478 law, which went into effect July 1, requires businesses to advertise or list prices inclusive of all mandatory charges. At least 10 other states have followed suit by proposing or enacting junk fee statutes targeting increased fee transparency.
“While price clarity helps, hotels still have a vested interest in keeping these fees…it’s pure profit for them,” said Henderson.
Critics argue that resort fees allow a hotel to effectively increase room rates without changing their advertised prices nor paying extra taxes.
“Whether hidden or not, [junk fees] contribute to these companies’ bottom lines and are still making their way into your bills,” said Henderson.
Protect yourself from junk fees
Henderson shared some tips to protect yourself from added junk fees when booking your next stay:
1. Search for places that don’t charge resort fees
The best way to avoid junk fees is by not being charged them in the first place.
“Knowledge is power for consumers and the more you know, the more you can make smart decisions with your money,” said Henderson, who suggests using sites like Kill Resort Fees to locate high-fee hotels ahead of time.
Bonus: Henderson also advises to plan for tips in your calculations to make sure you’re choosing a destination that fits your budget.
“Even in foreign countries, Americans are often expected to offer something,” he said.
2. Ask to remove resort fees
Speaking up can go a long way. When making your hotel reservation or when checking-in, Henderson recommends asking the hotel if they will simply remove the fee from your total.
“Negotiating is an option, too,” he said.
3. Call your local congressperson and complain about junk fees
“The louder we are, the more political pressure there is on these companies to stop junk fees,” said Henderson, “we’re seeing some progress, but there is still a long way to go.”
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