Published on August 12, 2025
Brad Peters, Founder, Director, CEO of HRBUniversal & The Plate & Pour Collective Equity Partner Program
Consumers are past being pissed! A growing wave of consumer outrage is sweeping across the hotel industry as guests increasingly face exorbitant incidental or deposit fees, often exceeding $100 for a single overnight stay at non-resort properties with no food and beverage outlets or paid parking. These hefty charges, tacked on at check-in, are causing significant financial strain and leaving many feeling exploited and accounting nightmare for businesses just so the property can make interest on the money collected.
The problem is further exacerbated by questionable payment processing practices. While hotels are completing sales within 48 business hours, they are frequently failing to use the original credit/debit card authorization. Instead, new transactions are being initiated, leading to funds being held on consumers’ accounts for 7-10 days. This practice is a clear violation of credit card processing agreements, which stipulate that merchants must release pre-authorized funds promptly upon final transaction settlement.
Consumers are reporting widespread frustration over these hidden costs and the resulting impact on their bank and credit card accounts. Many rely on immediate access to their funds, and these extended holds, combined with unexpected charges, are creating significant financial hardship. Advocacy groups are beginning to take notice, calling for greater transparency in hotel pricing and stricter enforcement of credit card processing regulations.
Experts suggest that this trend of excessive fees is a desperate attempt by some hotels to boost revenue in a competitive market. However, the short-term gains are likely to be overshadowed by long-term damage to customer loyalty and brand reputation. As more consumers become aware of these practices, the backlash is likely to intensify, potentially leading to class-action lawsuits and increased regulatory scrutiny.
It is imperative for hotels to re-evaluate their fee structures and payment processing methods to ensure fairness and compliance. Consumers, on their part, are advised to meticulously review all charges before and after their stay and to report any questionable practices to their bank and relevant consumer protection agencies. The message is clear: the era of hidden fees and prolonged fund holds must come to an end.
#HotelFees #ConsumerAlert #HiddenCharges #CreditCardScam #TravelRipOff #HotelRipOff #FinancialTransparency
