Drip Pricing?

The FTC is none too fond of the practice known as "Drip Pricing". That's when the advertised price doesn't reflect the true cost of the purchase. Resort fees added fall into this category, and they are looking into it FINALLY! You may see them go away in the not too distant future.

With all the competition on line the hotel/casino industry want to lead you in with a low price, so the initial ad says the price without the mandatory added fee which is usually disclosed in the fine print on another page if at all.

It's like a loss leader. They just want you to look at their option first, and then, stick it to ya!

The American Hotel and Lodging Assn had no comment, and they are generally the go to organization for speaking on behalf of the industry. It's just too hot to handle. When queried they responded they (Katherine Potter, senior VP for marketing and communications for the AH&LA) weren't legally able to respond.

If you don't like resort fees don't complain to the Hotel, that won't do any good. Write to the FTC, and it's good to have a copy of a bill that included a resort fee they stuck you with that wasn't disclosed in the initial ad or first page of the offer, be it from one of then travel sites or the hotel itself.

The travel sites just pass on the info, the hotel company is the culprit.

Dirty Pool in my book.

ftc.gov will do it.

https://econsumer.ftccomplaintassistant.gov/

Excellent analysis. Given the stance they've taken with the airlines, it is very likely legislation will be passed to eliminate mandatory hotel fees...

However, do not lay the blame entirely on the hotels. Ultimately, it's the consumer who is to blame. With people constantly looking to find good deals, hotels have had to ramp up efforts to make money. Mandatory fees are the way of undercutting a competitor on a travel website, all the while maintaining high profit margins.

A change has been made in the retail world, and the results are disastrous. JCPenney's decided to veer away from sales pricing in favor of a "everyday pricing" model that helps maintain constant margins. Sales are down 15-20% to last year, and while the company is likely being a bit more profitable per item sold, it can't overcome the huge downturn in sales, as people have no incentive to shop outside of their needs or regular shopping habits.

We (members of this forum) like to think that we don't want to fall for this, but in the end, it's people like us, constantly looking for the best deal and most bang for the buck, that causes industry changes.

At the least, it should all be disclosed online or on the phone when you book so you can compare. IMHO 1-2 places could do smart by advertising "IN-THE-DOOR" (out the door but you walk INto a hotel room, get it?) pricing. Say TI as an independent shows how booking them is smarter and easier than with the Evil Empire who will not only charge you a resort fee, they may soon even charge to rent the pen you sign the register with.

The model for this is that in most cities there are 1-2 tire stores that realize customers got sick of paying for mounting and other required charges, even though mounting and balance was legit. They just said, "screw it, $65 per tire OTD is a fair price." I could see the same in hotels.

There are so many hotels that advertise no resort fees, it was no longer a hidden charge for those that do.

Quote: AZDuffman

Say TI as an independent shows how booking them is smarter and easier than with the Evil Empire who will not only charge you a resort fee, they may soon even charge to rent the pen you sign the register with.

If the Evil Empire you refer to is MGM, then yes that's the case. However, if you're referring to the more commonly known Caesars, they advertise very heavily that there are NO resort fees... you pay for EVERYTHING a la carte.

Quote: Tiltpoul

If the Evil Empire you refer to is MGM, then yes that's the case. However, if you're referring to the more commonly known Caesars, they advertise very heavily that there are NO resort fees... you pay for EVERYTHING a la carte.

I was confused by that too. I stay at the Evil Empire specifically because they have no resort fees. No surprises on my comp'd room. They tell me it's $13/night because of the tax in New Jersey and that's what it always is.

A lot of bad things can be said about Caesars but charging resort fees is not one of them.

I generally lie on the business side of issues like this, but it's definitely a case of false advertising that's gone on for way too long. As long as the full stay price is disclosed at every single point of hotel browsing I think that's fine. Don't ban additional fees, just never let them advertise the price without it (the hotel can itemize the total price to show that the customer is "getting" something for a mandatory $15).

Quote: s2dbaker

I was confused by that too. I stay at the Evil Empire specifically because they have no resort fees. No surprises on my comp'd room. They tell me it's $13/night because of the tax in New Jersey and that's what it always is.

A lot of bad things can be said about Caesars but charging resort fees is not one of them.

I get charged $13 a night too at any of the Caesars props in AC, but why is it only $5 a night at Trump Taj? Taj tells me it's the tax, so does Caesars. Same city, why the discrepancy?

Quote: NickyDim

I get charged $13 a night too at any of the Caesars props in AC, but why is it only $5 a night at Trump Taj? Taj tells me it's the tax, so does Caesars. Same city, why the discrepancy?

That's a good question. Trump Taj may have a deal with Jersey that CZRs doesn't have. Maybe the tax is based on the "rack" rate and Trump Taj just has much lower rates. I'll save my receipt next time and if I ever find myself staying at a property with Trump's name on it, I'll save that too and compare the fine print.

Quote: s2dbaker

That's a good question. Trump Taj may have a deal with Jersey that CZRs doesn't have. Maybe the tax is based on the "rack" rate and Trump Taj just has much lower rates. I'll save my receipt next time and if I ever find myself staying at a property with Trump's name on it, I'll save that too and compare the fine print.

The state of New Jersey requires a parking fee but it is waived for higher tier players. Revel and AC Club had free parking for everyone all summer. I imagine the state still gets their money.