Dispelling Vegas Misconceptions: No Need to Pay Resort Fees
Editor's Note: Our weekly column "Vegas Myths Busted" is published every Monday, including a Flashback Friday edition. This entry first appeared on March 17, 2023.
These days, most hotels on the Las Vegas Strip have implemented resort fees - even those that boasted they wouldn't, such as Planet Hollywood. But why are these fees being branded as illegal by consumer advocacy groups?
One such website, killresortfees.com, claims, "You do not legally have to pay any hotel resort fee.” They insist these fees violate Nevada's Deceptive Trade Practices Law, giving you the right to refuse payment during check-in. This advice might seem appealing, but it could lead to severe consequences.
To stand your ground against resort fees, the website advises informing the manager that you've already paid the advertised rate for your room and all necessary taxes.
However, it's worth noting that many hotels may not allow you to raise any objections about resort fees during check-in. Often, these fees aren't revealed until after you check out, and your credit card has been charged for them.
The Beginning of Resort Fees
Resort fees were initially unnoticed because they began as a small per-night charge by a handful of hotels over 25 years ago.
As per a Nerd Wallet analysis of over 100 hotels across the U.S., resort fees currently average around $42.41 per night - around 11% of the total hotel stay cost.
Resort fee checker can help you find out which hotels levy these fees and by how much.
The Real Reason for Resort Fees
While hotels claim these fees are a convenience for their guests, bundling amenities into a single price, the truth lies elsewhere.
The rise of online travel agents (OTAs) in 1996 brought resort fees to life. Hotels began charging these secret fees to maintain their visibility on popular booking platforms like Expedia, Booking.com, and Travelocity.
Today, over 41% of all bookings occur through these OTAs, and avoiding them often translates into a higher cost.
Catering to the "best value" or "lowest price" requirements, hotels have opted for lower daily room rates to attract more customers. Resort fees, disguising a portion of room rates as hidden fees, are the economically efficient way to meet these parameters.
Resort fees provide additional benefits to hotels as well. They eliminate the need to charge separately for amenities like Wi-Fi, gym access, or local calls. Hotels save on commissions to OTAs as well, receiving payments only on room rates, not separate fees. These fees also increase their revenue per available room, a performance metric.
For investors, these fees are a reliable revenue stream, with U.S. hotels raking in $2.9 billion in 2018 - a threefold increase from the 2004 total.
A Legal Dilemma?
While you can challenge resort fees, for example by filing a credit card dispute or filing a complaint with your state's attorney general, you'll still need to pay them first. If resort fees were truly illegal, why would President Biden be requesting Congress to ban them, along with "junk fees" for services related to concert ticket sales, airplane baggage fees, and disconnecting cable, internet, or phone services?
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Source: www.casino.org
