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Hyatt is Sued Over ‘Junk Fees’ by Consumer Advocacy Group

Complaint alleges that charges cost consumers tens if not hundreds of millions of dollars.

Written by:

Harvey Chipkin

Published on:

Image: Shutterstock/261343178

A class action suit has been filed against Hyatt Hotels Corporation in the civil division of the Superior Court of the District of Columbia over the issue of “junk fees” charged to guests under the banner of “destination fees” or “resort fees.” According to the suit filed by Travelers United, a consumer advocacy group, the fees have resulted in costing consumers tens, if not hundreds, of millions of dollars each year by falsely advertising room rates.

The American Hotel & Lodging Association has said the fees were created to provide hotel guests with the best value by grouping fees for amenities into one cost, and that hotels are transparent about the fees they disclose.

In the lawsuit, Travelers United specifically names the Grand Hyatt Washington, which charges guests a destination fee of $20 per night. Travelers United claimed this fee was not clearly advertised on Hyatt’s website as part of the total room price, resulting in what the group described as “partitioned pricing.”

According to Travelers United, this practice violates the District of Columbia Consumer Protection Procedures Act, which the group said requires businesses to sell goods and services for their advertised prices.

The suit argued, “Due to this partitioned pricing, consumers still could not reasonably compare the costs and benefits of a given Hyatt hotel room to other rooms available through Hyatt and at other companies.”

This action is the latest in a series of actions against hotel companies for similar fees. The Biden administration is pledging to crack down on “excessive, hidden and unnecessary fees” across a variety of industries — including hotels —via the Junk Fee Prevention Act introduced in March.

Marriott International, Hilton and MGM Resorts have also been involved in legal battles over resort fees.

Categories: Lodging | NewsTags: Hyatt | Lodging

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