Published on: December 17, 2024, 11:01h.
Last updated on: December 17, 2024, 01:15h.
The rates for casino resort hotel rooms will soon increase following the US government’s bipartisan ruling to ban tactics in the industry that are considered deceptive.
Hotel guests are familiar with resort fees, which are extra charges not typically included in the advertised nightly rate for a hotel room.
In Las Vegas, resort fees can go up to $55 per night at properties such as Bellagio and Mandalay Bay. These add-on charges must now be included in the initial rate by hotels and casino resorts as per the new ruling.
The Federal Trade Commission (FTC) recently announced a rule known as the “Junk Fees Rule” aiming to stop deceptive pricing strategies in various industries, including live-event ticketing and short-term lodging.
The FTC Chair, Lina Khan, emphasized the importance of upfront pricing to consumers to avoid surprises with hidden fees later on.
The FTC’s rule seeks to eliminate junk fees in various sectors to save Americans both money and time. Enforcement agencies are urged to continue combating such practices, and legislative support is encouraged to address deceptive fees across different industries.
Relief at Last
Initially introduced in the 1970s to cover amenities, resort fees have evolved into controversial charges that are often buried in the final cost of a stay at hotels and casino resorts.
The new FTC rule on junk and resort fees aims to ensure transparent pricing for consumers. Critics argue that glitzy casinos tend to inflate their room rates by adding resort fees, giving the false impression of competitive pricing.
Within 120 days, hotels are required to disclose all additional charges upfront. This amendment comes after extensive public input on the impact of such changes on pricing strategies in the lodging and ticketing industries.
While the rule doesn’t outlaw resort fees, it mandates their inclusion in advertised rates to provide clarity to consumers.
President Joe Biden’s administration prioritized eliminating junk and resort fees, achieving this goal during his final month in office.
Budget Consequences
Resort fees have been a point of contention for Las Vegas visitors for years, significantly impacting the overall cost of a stay and potentially causing financial strain for budget-conscious travelers.
Some booking platforms do not include resort fees, leading to guests being surprised with additional charges upon arrival.
For instance, a stay at Luxor advertised at $25 per night can quickly escalate to $146.68 after factoring in a $90 resort fee, highlighting the misleading nature of these charges.