Tucson Citizen.com
Better Business Bureau Consumer Alert -

Posts Tagged ‘consumer’

Vacationers are Getting Hit with “Resort Fees” Not Disclosed on Internet Travel Sites

Sunday, March 17th, 2013

Better Business Bureau of Southern Arizona warns vacationers to ask plenty of questions before booking a hotel vacation stay.

In a variation of fees imposed by airlines for extra baggage and in-flight meals, some vacationers are being charged between $10 and $30 a night for “resort fees” for internet access, use of gym facilities, newspapers, a safe in their rooms and more, regardless of whether they use these amenities or not.  The fees are typically neither disclosed nor included in the checkout price on online travel booking sites.

Resort fees fall under a business model known as “drip pricing,” as described on the Federal Trade Commission (FTC) website:

Drip pricing is a pricing technique in which firms advertise only part of a product’s price and reveal other charges later as the customer goes through the buying process.  The additional charges can be mandatory charges, such as hotel resort fees, or fees for optional upgrades and add-ons. Drip pricing is used by many types of firms, including internet sellers, automobile dealers, financial institutions, and rental car companies.”

In some cases, the additional per-night fees were never mentioned at all or appeared separate from the quoted reservation price in online booking sites, and, according to the FTC, other consumers “…complained they did not know that they would be required to pay resort fees in addition to the quoted hotel room rate,” and only found out when they checked out of the hotel.

The FTC has sent a warning letter to 22 hotel operators, warning them that they may be engaging in deceptive advertising by not including mandatory resort fees when they quote a price.

BBB offers the following advice to avoid undisclosed hotel resort fees:

Carefully read terms and conditions – When booking online, look for fine print which may disclose whether additional fees may be added to the per-night cost of the hotel room.

Contact the hotel in advance – After you have done your comparison shopping online, call the hotel directly to find out what additional fees may apply, and whether they can be waived if the amenities are not used.

Reconfirm upon check-in – Bring a copy of your booking receipt when you check-in and verify the total cost of your booking.  It is much easier than trying to negotiate when you are in a rush to get to the airport when checking-out.  If you are told that additional charges may be placed on your credit card for resort fees, make sure the hotel customer service representative or manager understands your concerns and makes a note in your file if you wish to opt-out.

File a complaint – If you feel that the hotel failed to disclose mandatory fees, you may file a complaint at www.bbb.org, or with the FTC.

National Consumer Protection Week – Sign Up for a Tip-a-Day!

Friday, February 15th, 2013

To celebrate the 15th Annual National Consumer Protection Week (NCPW), Better Business Bureau of Southern Arizona is offering savvy consumers seven important tips. Sign up here to receive a BBB tip-a-day on the latest consumer topics.

NCPW is March 3-9, and government organizations and nonprofits across the country are offering consumers a wealth of tips and information from federal and state governments and non-profit partner organizations. BBB is, once again, encouraging every consumer to take full advantage of their consumer rights and make better-informed purchasing decisions.

NCPW.gov offers consumers a wide selection of free materials to learn how to protect their privacy, stay safe online, manage their money, avoid identity theft, understand mortgages and steer clear of frauds and scams.

For more consumer tips visit, bbb.org/news and like us on Facebook to stay up-to-date on the latest Facebook.com/BetterBusinessBureau. For information scams, visit BBB Scam Stopper at bbb.org/scam.

Businesses Should Prepare Now for Holiday Complaints

Tuesday, December 18th, 2012

With seasonal customers comes an increase in complaints, and the simple fact is that some businesses drive profits right back out the door because they do not have an effective complaint handling system.

Industry estimates say that generally businesses receive complaints from only about five percent of dissatisfied customers. About 95 percent of customers simply will not complain, but more importantly, about 90 percent of this group will never use the business again. Equally alarming for businesses is that typical dissatisfied customers will mention the problem to about eight acquaintances.

“Businesses operating in tough markets with small margins are constantly searching for points of competitive advantage and effective complaint handling can be a key differentiator” said Kim States, BBB President. “A complaint offers a superb opportunity to transform an unhappy customer into a loyal customer, one who may even end up helping you win new business.”

Better Business Bureau of Southern Arizona recommends businesses review customer relations policies on a regular basis, and advises that complaint handling processes must make it easy for customers to complain and empower employees to deal with complaints promptly. The following procedures are essential:

Documenting – The date the problem occurred, a description of the problem, and any other pertinent information should be recorded.

Investigating – Along with information from the customer, gather more facts by researching in-house records, requesting receipts and inspecting the product.

Acknowledging – Let the customer know that the matter is receiving attention and provide a realistic estimate for how long it will take to resolve the issue.

Formulating a Solution – Important criteria to consider include warranty obligations; customer expectations; cost versus benefit of alternative solutions; fairness of your decision; and your ability to carry out the solution.

Responding – Any response should be clear, appropriate and specific to the customer’s complaint. Avoid form letters and technical jargon. Explaining a decision can preserve a customer’s goodwill, even if a different result was desired.

Following-up – Contact the customer following your response to verify whether or not the matter has been resolved satisfactorily. If the customer is unhappy, you can refer the matter for third party dispute resolution (to BBB for example).