Resort Fees

I have been around a long time, and I realize this may not be a popular view, but resort fees (for the most part) were created for two reasons. One was to increase ADR without giving guests sticker shock, and the other was to allow the fees to drop to the bottom line without having to pay commissions on them, specifically to OTAs. Yes, some resorts truly need these fees for resort amenities, but these are few and far between (and no, the use of a safe, and bottle of water is not what I am talking about). As expected, the FTC has now weighed in on this, and while it does not make the fees illegal, it requires that the full price be displayed upfront when advertising rates. This means resorts will likely need to pay commissions on the full price (if they aren’t already), and if these fees cannot be separated from the room rate, do they hold any real purpose anymore? The new rules are slated to take effect in April of this year, barring any last-minute changes from the new administration.