Marriott International has agreed to include mandatory resort fees in the room rate.
The settlement was filed in the court. Marriott has nine months to implement the changes.
The Pennsylvania attorney general's investigation focused on the practice of "drip pricing," when fees are gradually disclosed to consumers as they go through the booking process. The total price of the room is not revealed until the final page of online booking or when the guest checks in at the hotel.
When and where agents need to reveal resort fees.
The practice is a violation of Pennsylvania's Consumer Protection Law.
"Hotels shouldn't be able to slap hidden fees on top of your bill at the last minute, and thanks to this settlement we're putting the hotel industry on notice to put an end to this deceptive practice," he said.
Consumers should be aware of the surprise fees when booking for holidays with seniors and families. We expect more hotel chains to follow Marriott's lead and fix this practice.
Marriott has committed to implementing a transparent system for disclosure of mandatory fees, including resort fees, as part of the total price of a hotel stay, theoretically making it easier for consumers to compare prices across multiple hotels.
The agreement requires Marriott to prominently disclose the total price of a hotel stay, including room rate and all other mandatory fees, on the first page of its booking website.
Marriott did not admit to any violations of law as part of the settlement.
Marriott International has always made sure that the resort/destination fees charged by hotels in the U.S. are clearly stated.
We will be updating the room rate display over the next several months in accordance with the agreement we have with the State of Pennsylvania.
Travelers United, a consumer-advocacy group that brought a lawsuit against MGM Resorts International for similar practices, applauded the settlement.
Lauren Wolfe of Travelers United said in a statement that American consumers will finally see a change in the way hotel prices are displayed after the Pennsylvania attorney general took a stand. All mandatory fees are included in the advertised price of the room.
The Travelers United case against MGM is one of the ongoing litigations by the attorneys general of Nebraska and the District of Columbia.
