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Hidden Hotel Fees - Resort Fee and Other Added Fee Scams
Online you booked a hotel room for $100/night, but when you checked out, it was $125, $150 or $200 a night!

Have you seen an advertised price for a hotel rom, then upon check-out, received a substantially higher bill, including things like "resort fees"?  According to a CNN article, travel websites like  Hotwire and Priceline claim that these fees, which are not included in the price you are presented when you book the room, are disclosed in their fine print.  That strikes us as highly unethical corporate behavior.  And so it did the FTC. The FTC is taking action against this scam. In 2012, the Federal Trade Commission sent out letters to 22 hotel chains warning them  that their online reservation sites may violate the law by providing a deceptively low estimate of what consumers can expect to pay for their hotel rooms. The warning letters cited consumer complaints that surfaced at a recent conference the FTC held on 'drip pricing,' a pricing technique in which firms advertise only part of a product's price and reveal other charges as the customer goes through the buying process. According to the FTC letters, '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.' These mandatory fees can be as high as $30 per night, a sum that could certainly affect consumer purchasing decisions.' The warning letters also state that consumers often did not know they would be required to pay resort fees in addition to the quoted hotel rate.

'Consumers are entitled to know in advance the total cost of their hotel stays,' said Federal Trade Commission Chairman Jon Leibowitz. 'So-called 'drip pricing' charges, sometimes portrayed as 'convenience' or 'service' fees, are anything but convenient, and businesses that hide them are doing a huge disservice to American consumers.'

The letters strongly encourage the companies to review their websites and ensure that their ads do not misrepresent the total price consumers can expect to pay.

HHow does the hotel hidden fee scam work?

 Instead of posting the total price you have to pay, some hotels take a portion of the real cost of the room and give it a name like "resort fee", "Parking", Energy Fee" etc. and do not include this in their advertised prices.

You may not find out until about hte additional fees until you arrive at the hotel, or worse, until you check out. Online travel agencies like Expedia, TRavelocity, etc. and the middlemenlike Hotwire and Priceline usually protect themselves by putting a disclaimer in their fine print that you may be subject to additional fees.The scam is wost in highly sought-after resort destinations, like Hawaii, the Carribean, and Las Vegas, but itcan happen anywhere.

How To Protect Yourself

Unpleasant surprises can ruin a vacation, especially when they cost money. That's why it pays to investigate a travel package before you buy. But it can be difficult to tell a legitimate sales pitch from a fraudulent one. Consider these travelers' advisories:

Call the hotel and ask about any and all possible add-on fees before you book.

Kiplinger warns about the top 10 hidden fees and how to avoid them (click here for the full article, the list is below):

1. Resort fees.
2.  Early check-in fee
3.  Additional person fee.
4.  WiFi fee.
5. Mini-bar and snack fee.
6.  Parking fee.
7.  Gym fee.
8.  Housekeeping gratuity.
9. Spa gratuity.
10.  Telephone surcharge.

Other tips:

• Be wary of "great deals" and low-priced offers. Few legitimate businesses can afford to give away products and services of real value or substantially undercut other companies' prices.
• Don't be pressured into buying. A good offer today usually will be a good offer tomorrow. Legitimate businesses don't expect you to make snap decisions.
• Ask detailed questions. Find out exactly what the price covers and what it doesn't. Ask about additional charges. Get the names of the hotel, airports, airlines and restaurants included in your package. Consider contacting these businesses directly to verify arrangements. Ask about cancellation policies and refunds. If the salesperson can't give you detailed answers, hang up.
• If you decide to buy, find out the name of the travel provider - the company that is getting your reservations and tickets. This company usually is not the telemarketer.
• Get all information in writing before you agree to buy. Once you receive the written information, make sure it reflects what you were told over the phone and the terms you agreed to.
• Don't buy part of the package - the air fare or hotel stay - separately from the rest. If the deal is not what you expected, it may be difficult to get your money back for the part of the package you purchased.
• Don't give your credit card number or bank information over the phone unless you know the company. One easy way for a scam operator to close a deal is to get your credit card number and charge your account. Sometimes fraudulent telemarketers say they need the number for verification purposes only. Don't believe them.
• Don't send money by messenger or overnight mail. Some scam artists may ask you to send them a check or money order immediately. Others may offer to send a messenger to pick up your payment. If you pay with cash or a check, rather than a credit card, you lose your right to dispute fraudulent charges under the Fair Credit Billing Act. If you charged your trip to a credit card, you may dispute the charges by writing to your credit card issuer at the address provided for billing disputes. If possible, do this as soon as you receive your statement. In any case, the law gives you up to 60 days after the bill's statement date to dispute the charge.
• Check out the company before you buy. Contact the Attorney General in your state or where the company is located to see if any complaints have been lodged against the travel firm or the travel provider. Be aware that fraudulent businesses often change their names to avoid detection.
• If in doubt, say "no." Trust your instincts. It's less risky to turn down the offer and hang up the phone.

Where to Complain/b>