Tag Archives: Hotel Fees

Hospitality Industry Management Update: “Non-Refundable Room Rules Leave Some Hot About Hotels”

“…’As non-refundable rooms become more prevalent, and I think they will, hotels will more than likely adopt policies such as offering rebooking opportunities for a fee orImage a 24-hour grace period for canceling a non-refundable booking,’ says Stephen Barth, hospitality law professor at the University of Houston…”

If you think the airline industry doesn’t do anything right, think again.

A few weeks ago, Brian Crummy had to pay for the same night twice at two different hotels.

The reason: His plans changed, and the rate he’d booked was completely non-refundable and non-changeable, even when he waved his diamond elite card at the receptionist.

“They would not budge,” says Crummy, a sales manager from Gilbert, Ariz. “I feel like the hotels bank on me taking the advance-purchase rate to save money, in hopes that my plans change and they can cash in.”

Are airlines any better? Well, kinda.

For more: http://www.usatoday.com/story/travel/hotels/2014/03/31/non-refundable-hotel-room/7127665/

Comments Off on Hospitality Industry Management Update: “Non-Refundable Room Rules Leave Some Hot About Hotels”

Filed under Employee Practices, Guest Issues, Hotel Industry, Management And Ownership, Training

Hospitality Industry Legal Risks: Hotels Warned By Federal Trade Commission (FTC) For "Deceptively Low" Estimates Of Room Costs; Undisclosed "Resort Fees" May Violate Law

 “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.’  FTCThese mandatory fees can be as high as $30 per night, a sum that could certainly affect consumer purchasing decisions.”

The Federal Trade Commission has warned 22 hotel operators 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.   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.

For more:  http://www.ftc.gov/opa/2012/11/hotelresort.shtm

Comments Off on Hospitality Industry Legal Risks: Hotels Warned By Federal Trade Commission (FTC) For "Deceptively Low" Estimates Of Room Costs; Undisclosed "Resort Fees" May Violate Law

Filed under Guest Issues, Liability, Management And Ownership, Risk Management