GR NEWS
FRLA Warns Consumers & Hoteliers to Watch Out for Hotel Booking Scams
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s families book vacations, the Florida Restaurant and Lodging Association (FRLA) is continuing to warn consumers and hoteliers about fraudulent hotel booking practices. Nationally, it is estimated by the American Hotel and Lodging Association (AH&LA) that there are 2.5 million bookings a year that are deceptive, which amounts to $220 million. With one in three travelers booking online, FRLA and AH&LA want to ensure that consumers don’t suffer the consequences from lost rooms, bad bookings, cancellation fees and charges. Florida’s 27-member Congressional Delegation sent a letter to the Federal Trade Commission (FTC) requesting an investigation into these practices. The FTC, whose mission is to prevent business practices that are deceptive or unfair to consumers, is now also alerting consumers of these deceptive practices. “These fraudulent vendors are putting consumers at risk. They’re tricking guests by offering bad deals Representative Lois Frankel held a news conference highlighting deceptive booking disguised as discounts, creating false identities and practices alongside FRLA representatives. using questionable privacy practices. We commend the Florida Congressional Delegation for urging the FTC to open • Be sure you call the hotel directly and ask the right questions when an investigation. We want visitors to experience the exceptional booking to ensure you protect your information, your reservation, accommodations we have here in Florida and we aim to help protect your points and your credit information. them from these scammers,” said Carol Dover, President and CEO of the ºº What is the privacy policy? Make sure your personal information Florida Restaurant and Lodging Association. isn’t harvested. The following is a list of tips for consumers planning to book ºº What is the cancellation/trip change policy? Most of these third hotels online: party booking sites don’t allow cancellations, changes, or any sort • Beware of where you book: Make sure you know who you are of refunds. dealing with. Third party vendors often make promises they cannot ºº Is the site, in any way, affiliated with the hotel? If no, your points keep, and they likely cannot help if something goes wrong. may not be honored. • Book direct: Consumers should book directly with the hotel either ºº Is it a secure payment site? The URL should have a small lock via web or phone to avoid being scammed. This is always the safest and should start with https:// as opposed to just http://. bet and will ensure you are protected and get the best value. • Contact the Federal Trade Commission: If a vendor has • Only use trusted sites: Although the hotel’s name may be part of the misrepresented itself to you, or if you’ve fallen victim to a hotel URL, double check the website address to ensure it’s not a thirdbooking scam, contact the FTC to alert them to the issue. Visit ftc. party vendor. gov/complaint to file your complaint.
Regulatory News: Hotel Industry Applauds D.C. Court of Appeals OTC Ruling
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he American Hotel & Lodging Association recently applauded the Washington, D.C. Court of Appeals’ decision requiring online travel companies to pay more than $60 million in unpaid sales taxes and interest to the District of Columbia, asserting that these companies are liable to pay a sales tax on the amount charged to consumers rather than the amount paid to hotels for rooms.
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“The ruling by the Washington, D.C. Court of Appeals is great news for taxpayers and the citizens of the District of Columbia,” said Vanessa Sinders, AH&LA Senior Vice President and Head of Government Affairs. “For several years, hoteliers have been working to close tax loopholes so that online transactions, whether they occur through a hotel company’s website or through an online travel company site, are taxed equally. Online travel agencies have been getting a free pass when it comes
to paying their fair share of taxes for online transactions. Attorney General Karl Racine and (President of the Hotel Association of Washington, D.C.) Solomon Keene have been leading the charge to close the loophole. This ruling demonstrates a growing commitment to providing marketplace tax equality, as well as ensuring that the taxpayers are not shorted much-needed revenue. AH&LA looks forward to continuing to reinforce this position in local municipalities and states across the country.” F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N