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ARTICLE · 25 JULY 2019

Hotel Industry Alert: Drip Pricing And Rate Transparency

In recent years, drip pricing has become a hot topic in the lodging industry. You may not know what it is, but chances are that you've experienced it. It often happens like this: you pick the

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In recent years, drip pricing has become a hot topic in the lodging industry. You may not know what it is, but chances are that you've experienced it. It often happens like this: you pick the perfect destination and find a great hotel deal, but when you go to book it, that great deal, which now includes additional fees suddenly isn't so great. What happened? The answer may be an unfair and deceptive practice known as drip pricing.

What is Drip Pricing?

Drip pricing occurs when a company advertises a low daily room rate to attract customers; then, during the buying process, it adds on one or more additional fees such as "resort," "amenities," or "facilities" fees. The issue is not the fee itself—which often go toward internet access, access to the swimming pool or gym, parking or shuttle services—but the failure to clearly and transparently disclose the fee as part of the advertised room rate. Hotels that persist with this practice may gain many new customers in

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