ALEXANDRIA, VA — The American Society of Travel Advisors is fed up with so-called ‘junk fees’ in the travel and hospitality industry, and it’s working to get action on the issue.
ASTA submitted comments to the Federal Trade Commission in the U.S. earlier this week in support of a proposed rulemaking which would prohibit unfair and deceptive practices related to ‘junk fees’ – hidden or deceptive fees that can harm consumers and undermine honest businesses.
These include various resort and hotel fees, which have proliferated in recent years.
In its update, ASTA says that “while charging mandatory resort fees has come under greater scrutiny in recent years, up until now predominantly by regulators and enforcement agencies at the state level, the practice remains common in the industry.
“As an advocate for not only travel agencies and individual advisors but also the millions of consumers who rely on our members’ services, ASTA believes that the rule as proposed would greatly benefit consumers of hotel and other short-term lodging services.”
ASTA says the proposed rule would also “prohibit misrepresentations regarding the nature and purpose of any mandatory fees, whether using vague descriptions or other tactics.”
ASTA says it shares the FTC’s view that due to such practices, “consumers frequently do not know or understand fully what the fees are for, why they are mandatory, or why they are being assessed by the seller. This is a problem altogether distinct from the failure to disclose the charge upfront to the agency and consumer during the booking process.”
ASTA adds that it has long supported efforts to increase transparency in travel pricing including the U.S. Department of Transportation’s full-fare advertising rule and FTC’s efforts to increase hotel pricing transparency.