As the COVID-19 pandemic comes to an end and travel restrictions ease, many of us are eager to resume our travel plans this summer. However, it’s crucial to be cautious when booking plane tickets or hotel rooms online, as what may appear to be a great deal could be a clever ruse to make you spend more money than you initially intended. Recent studies and travel experts have discovered that hotels and airlines, struggling to recover from their pandemic losses, are increasingly employing hidden charges, often referred to as “junk fees,” to extract more money from consumers.
These additional charges can take various forms, including fees for resort amenities, checked luggage, and seat selection, and they are typically not disclosed upfront when using online search engines. Instead, they tend to be presented towards the end of the transaction, catching travelers off guard. This tactic, known as “unbundling,” is not new in the travel industry, but certain fees, such as baggage and seat selection on planes, have increased during the pandemic. Vague hotel resort fees have also become commonplace, with typical daily charges ranging from $20 to $50 for basic services like Wi-Fi and parking.
Consumer Reports estimates that junk fees related to hotels cost travelers around $3 billion annually. For airlines, revenue from ancillary fees, including carry-on luggage, seat assignments, and early boarding, reached $102.8 billion in 2022, a 56% increase from the previous year, according to consulting firm IdeaWorks. These staggering numbers signify a shift in the travel landscape, necessitating a change in how travelers search for and compare travel deals.
Henry Harteveldt, president of Atmosphere Research, a travel analysis firm in San Francisco, explains that hotels and airlines deliberately make it difficult to accurately compare the total cost of flights or hotel stays because they don’t want consumers to base their purchases solely on price. As a result, the days of relying solely on search engines like Google or Expedia to quickly find the best travel deals are long gone. Travelers must now invest additional time and effort into deciphering the true cost of their trips.
Regulators have recognized the prevalence of junk fees and have taken steps to address the issue. The Federal Trade Commission (FTC), following an investigation into these fees, plans to implement rules limiting businesses from imposing them in the coming months. However, until these laws take effect, it falls on consumers to be vigilant and avoid falling victim to deceptive pricing tactics. Here are some strategies to help navigate the murky waters of junk fees.
Hotel Fees:
When booking a room, the initial price displayed during an online search may be significantly lower than the actual cost. This discrepancy is often due to hidden fees, such as destination fees. An example is the Grayson Hotel by Hyatt, which may appear to cost $331 per night on Google or Expedia but ends up totaling $421 during the checkout process. Such fees are typically obscured and only revealed after delving into the details of the transaction.
To combat this issue, several online resources regularly track hotel resort fees, allowing travelers to better plan and budget for their trips. Resort Fee Checker is a tool that enables users to search for hotels and determine if they charge resort fees, as well as the specific amounts. NerdWallet, a personal finance site, conducted an analysis of resort fees and found that Wyndham Properties, Hyatt, and IHG were among the highest offenders, charging an average of 3.8% to 6.5% of the total room cost.
Booking directly through a hotel’s website, rather than using third-party agencies like Expedia or Priceline, can help avoid higher resort fees. Some hotels may charge different fees to those booking through third parties. Additionally, joining hotel loyalty programs often entitles returning customers to waived resort fees.
Airfare:
Airlines have their own set of hidden fees, which are rarely disclosed until deep into the ticket booking process. Once travelers have selected a flight and provided their personal information, they are presented with additional costs for seat selection or checked baggage. It has become common knowledge that budget airlines, known for offering cheap tickets, compensate for the lower prices by charging extra for basic amenities like seat selection and luggage.
To navigate the complex realm of airfare fees, it is essential to familiarize oneself with each airline’s business model and their typical fees. A recent analysis by NerdWallet revealed that Frontier and Spirit Airlines charged the most for seat selection, while Alaska and Hawaiian Airlines charged the least.
If an airline charges for seat selection, one option is to avoid selecting a seat during the booking process and instead inquire about seat availability with a customer service representative at the terminal. However, this approach carries some risks, particularly for families traveling together.
Putting in the Time:
Traveling on a budget now requires more effort, as it is necessary to meticulously calculate the true cost of each vendor. By accounting for all the fees involved, travelers can make accurate cost comparisons. Although this additional labor is less than ideal, it is currently necessary due to the lack of regulations preventing junk fees.
Efforts are underway to address this issue, with some brands proactively changing their practices. Marriott International recently updated its room rates to include resort fees when customers use its app or website for bookings. Hyatt also plans to follow suit. While this doesn’t eliminate resort fees altogether, it does provide consumers with immediate transparency, allowing them to make more informed decisions and potentially book elsewhere if a deal is not as attractive as it initially seemed.
In conclusion, as travel resumes after the pandemic, travelers should be aware of the prevalence of hidden charges, or junk fees, imposed by hotels and airlines. Until regulations are in place to address this issue, vigilance is crucial. By familiarizing oneself with fees specific to each brand, checking for resort fees through online resources, booking through hotel websites, and conducting thorough cost comparisons, travelers can minimize the likelihood of falling victim to deceptive pricing tactics. While the travel industry undergoes changes to its pricing practices, consumers must remain cautious and make informed decisions to ensure they get the best value for their money.
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