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Resort fee

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Resort fee

A resort fee, also called a facility fee, a destination fee, an amenity fee, an urban fee, a resort charge, or a hidden hotel booking fee, is an additional fee that a guest is charged by an accommodation provider, usually calculated on a per day basis, in addition to a base room rate.

Resort fees originated in North America. Though mostly found in tourist destinations in the United States, some resorts in Mexico and the Caribbean now also charge resort fees. A handful of hotels in Canada have also taken up the practice.

In many countries, it is illegal to charge additional fees not disclosed at the time of booking, and the fees are currently being legally challenged in the United States.

In the United States, resort fees have been a contentious practice. Currently, hotel resort fees can be viewed as illegal based on existing state consumer protection laws.

Numerous bodies have authority on this issue in the United States, including the U.S. Congress, state legislatures, the Federal Trade Commission, and the National Association of Attorneys General. To date, 50 attorneys general have opened an investigation into hotel resort fees. Marriott was issued a subpoena on June 6, 2017, by the Attorney General of Washington, D.C., regarding their non-cooperation in the investigation, as the hospitality industry continues to stall any legislative solution to the issue. Since then the Attorneys General of DC, Nebraska, Pennsylvania and Texas have taken action against hotel resort fees. Non-profit consumer protection group Travelers United sued MGM, Hilton, Hyatt and Sonesta. The FTC announced a notice of proposed rule making in 2022 and US President Biden talked of hotel resort fees in his 2023 State of the Union. The FTC released its proposed rule on junk fees on October 11, 2023, and in the FTC's press release it specifically highlighted hotel booking fees and resort fees.

In 1997, some resort hotels began to charge a mandatory resort fee, regardless of which facilities were used by guests. Advertising a room without including the resort fee in the price enables the hotel to advertise a lower room rate than the actual price of the room.

Resort fees were previously found just in tourist locations at actual resorts. Still, they are common throughout the United States in exclusive resort destinations and at two-star hotels in American cities. The fees are usually seen as a nuisance and a scam by travelers. They also affect international tourists who are unfamiliar with the breakdown of a US hotel bill and may not speak English.

Resort fees are most commonly charged in tourist areas, where there is collusion, with all hotels deciding to charge such fees. Currently, resort fees apply to almost all 62,000 rooms on the Las Vegas Strip. Resort fees, along with the recent introduction parking charges (neither of which are typically charged at the numerous alternative gaming locations in the United States), are believed to be a significant cause of a reduction in tourism to Las Vegas.

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