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Marriott and Hilton Cases Shed Light on Resort Fees and Drip Pricing

01 Sep 2019, by Tipton Law in Business Representation

In the ever-evolving landscape of the hospitality industry, the controversial practices of resort fees and drip pricing have become the focus of intense legal battles. Two major players, Marriott and Hilton, have found themselves in the midst of court cases that are poised to shape the future of these practices.

For years, travelers have booked hotel accommodations only to discover unexpected charges upon arrival, commonly referred to as resort fees. These fees are tacked onto the advertised room rates and cover amenities such as pool access, Wi-Fi, and fitness center usage.  May critics argue these fees are often hidden from consumers during the booking process, creating a misleading pricing structure.

The Marriott Case: A Watershed Moment

One of the most significant legal battles surrounding resort fees involves Marriott International. In 2019, the District of Columbia Attorney General filed a lawsuit against Marriott alleging the company engaged in deceptive and misleading trade practices by not disclosing the true price of hotel rooms when advertising online. The case focuses on whether Marriott adequately informed consumers about additional fees and charges.

The Hilton Case: A Similar Struggle

Following in Marriott’s footsteps, Hilton also faced litigation related to resort fees and drip pricing.  The Nebraska Attorney General filed a lawsuit against the hospitality giant, asserting that Hilton violated the state’s consumer protection laws by employing drip pricing techniques. The case revolves around allegations that Hilton’s online reservation system failed to disclose the full price of hotel rooms upfront, including mandatory resort fees.

Consumer Advocacy and the Fight for Transparency

The two aforementioned court cases reflect growing concerns among consumer advocacy groups regarding deceptive pricing practices. Critics argue that resort fees and drip pricing can significantly inflate the overall cost of a hotel stay, undermining pricing transparency and consumer trust. Advocates are calling for more stringent regulations to ensure consumers are provided with upfront and accurate pricing information during the booking process.

The outcomes of the Marriott and Hilton court cases could have far-reaching consequences for the entire hospitality industry. If these practices are deemed deceptive or in violation of consumer protection laws, hotel chains may be forced to modify their pricing strategies and increase transparency.  Depending on the Court rulings in each case, consumers may soon see changes that include displaying the full price of a room, including all fees, upfront during the booking process or the elimination of resort fees altogether.

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