Fraudulent Resort Fees? Lawsuit Investigation into Hotel Destination, Facility, Amenity Fees

Attorneys working with ClassAction.org are looking into whether class action lawsuits can be filed over potentially fraudulent resort fees.

Specifically, they believe some hotels may be illegally charging a per-night fee—sometimes called a destination fee, facility fee, amenity fee, or urban fee—without providing the amenities, products or services that are supposedly covered by the fees. For instance, it could be illegal for a hotel to charge a resort fee that covers bike rentals but not have enough bikes for its 500 guests to reasonably be able to use them.

Why Might a Resort Fee Be Illegal?

Attorneys are looking into certain situations where a resort fee may be fraudulent and violate consumer protection laws.

Resort fees can cover a wide range of services or amenities—such as premium Wi-Fi, access to the pool or gym, fitness classes, cultural activities, beach chairs, a daily happy hour, breakfast vouchers and more—but they could potentially be considered illegal if many of the advertised options are not available, as in the examples mentioned above.

Previously, resort fees have been the subject of legal scrutiny by the Federal Trade Commission and class action lawsuits—but for a different reason. Several class action lawsuits were filed over how the fees were disclosed, claiming the hotels misled guests by adding resort fees late in the checkout process that were not included in the initially advertised cost—a practice known as “drip pricing.”

More recently, the Federal Trade Commission issued a final Junk Fees Rule in December 2024 banning what it called “bait-and-switch pricing” for live event tickets and hotels. Though it was reported that resort fees are now illegal under the new rule, the FTC was clear that the hotel junk fees rule does not prohibit any type or amount of fee. Rather, it requires hotels to disclose the final price of a stay upfront, including all mandatory fees and charges.

Complaints About Resort Fees

According to some travelers, resort fees are “ridiculous,” “deceptive” or “a scam”—and guests from New York to Las Vegas have complained about not receiving the amenities or services they paid for through a resort or destination fee.

Below is a sample of consumer complaints about resort fees from Reddit [sic throughout]:

I thought they’ve made some of these fees illegal (Junk Fees) in some / many places (USA) - Last time it happened to me in NYC - I arrived late left early and they charged me 65 dollars in ‘resort fees’ which included the use of the gym which was closed and wifi which wasn’t used.”
— Reddit user, Reddit.com

I stayed at a smaller Autograph Collection property in California and paid the destination fee. The fee covered various activities that were only available in the late afternoon, after check-out and before check-in. I was staying at the associate rate, so I didn’t point out that paying a destination fee for activities I couldn’t partake in was silly. I kind of understand legitimate resort fees, I don’t like them, but I understand. Destination fees on the other hand are straight-up fraud.”
— MayoralCandidate, Reddit.com

Anyone argue a destination fee placed by the hotel? We picked out this Oceanfront hotel specifically because it said they included things like beach toys and boogie boards, but literally none of the things mentioned under the $20 per night destination fee are available because it’s ‘off season.’ It really bummed us out and it wasn’t the end of the world but we ended up having to go across to a beach store (which ain’t cheap).”
— vsingh93, Reddit.com

Booked in the MGM Grand with another couple way back in 2014 - in winter - and argued the resort fees until we were blue in the face - without success. The resort fee primarily covers the swimming pools and internet. We said the pools are closed and we don’t use wifi.”
— SouthAfricanFella, Reddit.com

This happened to me on my trip to vegas earlier this year. I paid it, and the wifi didn’t even work. I wasn’t able to connect the whole time.”
— Pandasteeze, Reddit.com

I booked a … hotel/motel in Vegas that had resort fees, it was at least an extra hundred on top of the actual fee for my stay what bothered me is the pool was closed by the Nevada health department they wouldn’t budge on any refund for any part of it. I reached out to my credit card, sent them photos and they wouldn’t work with me either it was such bs. It was literally the only thing they offered besides the room.”
— passengerv, Reddit.com

How Could a Class Action Lawsuit Help?

If filed and successful, a class action lawsuit could help guests recover money for any illegal resort fees. It could also force the hotels to change their fee practices or ensure that the covered amenities and services are being provided for each guest.

Before commenting, please review our comment policy.