Hotel Group Sonesta Faces Lawsuit Over ‘Junk Fee’ Disclosure
Skift Take
Key Points
- Sonesta faces a class-action lawsuit in Washington, D.C., over non-disclosure of mandatory resort fees.
- The lawsuit claims Sonesta earned tens of millions annually from these fees since 2017.
- Other major hotel chains like Hyatt, Marriott, and MGM Resorts have faced similar legal actions.
Summary
Sonesta, a hotel group operating over 1,200 hotels, faces a class-action lawsuit in Washington, D.C., for allegedly not disclosing mandatory resort fees upfront on its website and app. The lawsuit claims that the company has earned tens of millions annually from these fees since 2017. This move follows similar actions against other major hotel chains like Hyatt, Marriott, and MGM Resorts. The lawsuit, filed by consumer advocacy group Travelers United, highlights that these fees, which can exceed $40 per day, are often hidden within 'taxes and fees' sections, requiring consumers to click through to discover the additional costs.
Yet another U.S. hotel company faces a lawsuit about disclosing mandatory resort fees. Sonesta, which runs more than 1,200 hotels under various brand flags, faces a class-action suit in Washington, D.C., over how it displays its resort fees on its website and app.
Sonesta, whose 16 brands include The Royal Sonesta and Red Lion Hotels, didn’t respond to a request for comment.
The move comes after Hyatt, Marriott, and MGM Resorts have responded to lawsuits by U.S. state attorneys general by disclosing upfront mandatory resort fees when an online shopper first sees rates returned for a search on their sites and apps.
“More lawsuits against more companies are coming,” said Lauren Wolfe of consumer advocacy group Travelers United, which filed the class-action suit against Sonesta.
The suit (embedded below) alleges that since at least 2017, Sonesta has made “tens of millions of dollars each year” by not disclosing upfront its mandatory resort fees and destination fees at some of its properties. The fees can exceed $40 a day, the lawsuit alleges.
“Even when a consumer selects a particular hotel on Sonesta.com, Sonesta still does not disclose the total nightly price when the customer is given the option to select their room type,” the suit says.
The case alleges that a consumer has to click an “expand price details button” to discover that a “taxes and fees” line item includes a “destination fee” separate from taxes.
Skift saw the same thing in its test search for The Royal Sonesta Kaua’i Resort Lihue — where a mandatory resort fee of $47.18 a night, including taxes, covers “cultural classes,” a silicone wristband, daily yoga and aqua fit classes, free Wi-Fi, a snorkel or boogie board rental, and two Mai Tai drinks.
Sonesta isn’t alone. All of the major hotel groups and many smaller hotel brands have engaged in the practice of junk fees in the past couple of decades.
“Since 2015, both the nightly resort fee rate and the number of hotels charging resort fees has continued to grow,” said Randy Greencorn, who runs the site Resort Fee Checker.
Here’s the lawsuit:
Photo Caption: The swimming pool at Sonesta Philadelphia Rittenhouse Square Hotel. Source: Sonesta.
Up Next
Mr & Mrs Smith Founder: Hyatt Integration Is Accelerating
17 Travel Startups Raise $636 Million in 3 Weeks
Snowboarding Soars, Boating Steadies, and Bicycling Stalls – A Decade of Trends in U.S. Recreation
That Maldives Vacation Just Got More Expensive: Here’s What’s Changing
