The Fight Against Junk Fees: Skift Timeline

28.12.2023 - 14:57 / skift.com / Pete Buttigieg / Joe Biden / Dennis Schaal / Rashaad Jorden / Ask Skift

The U.S. government has increasingly taken aim at junk fees, charges levied by travel service providers that are considered unnecessary or excessive and not clearly communicated to travelers.

Skift has covered the issue for years. Examples of junk fees in the travel industry include airline-seat selection fees, resort fees or excessive cleaning fees in a short-term rental. Now the Biden administration has been looking to crack down on the practice. Here’s a timeline of events in the fight against junk fees.

The District of Columbia filed a lawsuit against Marriott International, alleging that the company had made hundreds of millions of dollars through what it had termed as “deceptive charges.” The complaint also alleged that Marriott violated the District’s Consumer Protection Procedures Act by using what the U.S. Federal Trade Commission has labeled “drip pricing.”

The lawsuit said Marriott owned, managed or franchised at least 189 properties worldwide that charged customers resort fees ranging from $9 to $95 daily.

Democratic Congresswoman Eddie Bernice Johnson of Texas and Republican Jeff Fortenberry of Nebraska introduced the Hotel Advertising Transparency Act of 2019, a measure that would ban hotels and short-term rentals from advertising rates that don’t include all fees, except for government-imposed taxes and fees.

Executive Editor Dennis Schaal reported there would be penalties for any individual that advertised rooms without including resort fees, adding that the measure — if were passed by Congress and signed by the president — would upend how hotel websites and online travel agencies display hotel rates and fees. 

Two years after suing Marriott, D.C. Attorney General Karl Racine said in newly unsealed documents that the hotel giants hundreds of millions of dollars from resort fees?

How much? At least $206 million solely from its self-managed resorts, according to depositions from the lawsuit, including $17 million from the practice in 2019.

The Department of Transportation unveiled a proposal that would require airlines to disclose fees for baggage, ticket changes and family seating the first time an airfare is displayed.

“Airline passengers deserve to know the full, true cost of their flights before they buy a ticket,” said U.S. Transportation Secretary Pete Buttigieg, with the department noting that consumers often receive information about additional fees at the time their ticket purchase is confirmed.

President Joe Biden said his administration would target “surprise fees” that consumers face, citing in particular resort fees and administrative fees for events such as concerts.

“These are junk fees,” Biden said. “They benefit big corporations. Not consumers. Not working