New Land Mines For Planners And Travelers

By Bobbie McAdam



Who would think that the energy crisis in California would impact those of us in Howard County, Maryland? And, better yet, how is it affecting us?

Well, it started this spring when conference facilities in California found they had already spent their entire energy budget. Surcharges started popping up all over. And, even if you have a signed contract, the hotels are still levying surcharges, usually in the range of $4 to $5 per sleeping room, per night.

As a result, meeting planners, lawyers and individual guests accuse hotels of trying to make up for lower revenues caused by slumping business. Planners also report hotels are attempting to add fees to existing and future contracts. As a matter of fact, the San Francisco-based law firm Lieff, Cabraser, Heimann & Bernstein filed class action lawsuits against Hilton Hotels Corp., Hyatt Corp. and Starwood Hotels and Resorts Worldwide. Another suit was filed in Los Angeles against Marriott International by the same firm. The suits state that guests are being blind-sided by energy surcharges they aren't aware of until they check out. Plaintiffs are requesting full restitution and other damages in addition to an injunction against each hotel chain.

"The surcharge practice is happening all around the country and is getting out of control," says Barry Himmelstein, partner at Lieff et al., and lead counsel for the lawsuit.

Add-ons for many amenities and services that used to be optional are beginning to show up. In response, hotels claim the new charges are mandatory even if a guest does not use the services (i.e., parking, use of fitness center or pool).

Some hotels say the charges are temporary and hope to remove them in the near future. However, few doubt that if this ploy works and people don't complain about the costs, guests will be stuck with them permanently, since the hotels would have no motivation to get rid of the fees once they are in place.

Think about it like paying for telephone calls in hotels. Ten years ago, guests never paid for local calls. Now, you do. This is just another way to add to the facilities' bottom line. With so many cell phones these days, why would someone pay at least $1 for each call from their room? Yet, if the reception is poor, it's still easier to pay the $1 than going to find a pay phone, so the hotel profits.

Additionally, most first-tier cities have initiated a "bed tax." Usually the money is used to help municipalities build stadiums.

If fees are disclosed up front and agreed to, conference planners can inform their constituents. The problem occurs when the fees are added on after a contract is negotiated and signed.

If you are making a hotel reservation, ask about service fees and surcharges up front. Then be sure to scrutinize your bill for those unannounced fees anyway. If they show up, challenge them.

You've got nothing to lose.



Bobbie McAdam, CMP, is president of Meeting Planners Inc. She can be reached at 410-724-2122.