FTC: Casino Resort Fees Must Be Included in Upfront Hotel Rates
The upfront rates for casino resort hotel rooms will soon be pricier after the US government passed a bipartisan rule banning industry tactics that have been described as “bait-and-switch” pricing.
Anyone who has stayed at a major casino resort is well aware of the pesky, unavoidable resort fee. Also known as a destination, facility, and amenity fee, resort fees aren’t typically included in the advertised nightly rate for a hotel room.
In Las Vegas, resort fees range as high as $55 per night at properties like Bellagio and Mandalay Bay. Coming soon, hotels and casino resorts will need to include all add-on charges exclusive of taxes into their initially advertised rate.
On Tuesday, the Federal Trade Commission (FTC) announced its final “Junk Fees Rule” to prohibit bait-and-switch pricing tactics used to hide real prices and bury junk fees in the live-event ticketing and short-term lodging industries.
People deserve to know up-front what they’re being asked to pay — without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” said FTC Chair Lina Khan.
“The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time,” Khan continued. “I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.”
Relief at Last
Resort fees first appeared in the 1970s when hotels began charging a small nightly add-on charge to cover amenities like fitness centers, a daily newspaper, local calling, and boarding pass printing. Over the years, however, critics say hotels and other lodging establishments like casino resorts have used junk fees to engage in deceptive consumer pricing practices.
The FTC rule on junk and resort fees will ensure that pricing information “is presented in a timely, transparent, and truthful way” to consumers. In the gaming industry, glitzy casinos have been accused of burying resort fees and continually raising the add-on charges to present the perception that their room rates are comparable to lower-rated lodging establishments.
Within 120 days, all hotels must include unavoidable add-on charges upfront. The FTC amendment follows two years of public input on whether such a change could help eliminate unfair and deceptive pricing tactics from the US lodging and sporting/concert ticketing industries.
The FTC, an independent agency of the US government whose mission is to enforce antitrust laws and promote consumer protections, said it reviewed more than 70K comments. The rule doesn’t prohibit resort or junk fees, but requires such costs to be included in an advertised upfront rate.
President Joe Biden made it a point of his administration to rid the hotel and ticketing industries of junk and resort fees. In his last full month in office, the president completed the goal.
Budget Consequences
Resort fees have enraged Las Vegas guests for decades. Resort fees can significantly alter the true cost of a stay, and for those trying to stick to a budget, the add-ons can have devastating consequences.
Many third-party booking sites don’t collect resort fees, but casinos instead demand such payment upon arrival.
For example, a budget stay at Luxor this week — Wednesday, December 18, until Friday, December 20 — is advertised at just $25 per night. Priceline allows the reservation to be completed for just $56.68.
Upon arrival, however, the guest will be told by Luxor’s front desk that a $90 resort fee is due. Luxor, despite being a lower-class hotel in the MGM portfolio, still charges a nightly $45 resort fee. That brings the total stay to $146.68, or $72.34 a night — a far cry from the initially advertised $25.
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The upfront rates for casino resort hotel rooms will soon be pricier after the US government passed a bipartisan rule banning industry tactics that have been described as “bait-and-switch” pricing. An online search for a casino hotel room in Atlantic City. The Federal Trade Commission is ordering hotels and casino resorts to include resort fees…