HARRISBURG, PA — Pennsylvania Attorney General Michelle Henry announced a settlement with Omni Hotels Management Corporation (Omni) concerning the company’s undisclosed “resort fees” and “drip pricing,” practices that often result in unexpectedly high bills for consumers at checkout.
Under the agreement, Omni will immediately disclose all fees associated with a stay, enabling consumers to budget effectively and compare prices accurately. Omni operates two hotels in Pennsylvania – the Omni William Penn Hotel in Pittsburgh and the Omni Bedford Springs Resort in Bedford.
“The fairness we seek for consumers is reasonable and appropriate—be up front with shoppers who have many lodging options and are free to explore those options,” said Attorney General Henry. “These hidden, 11th-hour, resort fees dupe consumers into thinking they are getting a better deal than the actual bottom line. We credit Omni for stepping up and committing to fix this deceptive practice.”
The settlement is part of the Office of Attorney General’s continued efforts to hold hoteliers accountable for hidden fees and “drip pricing” — additional fees disclosed as consumers progress through the booking process.
The Office of Attorney General secured a similar settlement with Marriott in 2021 and took further action earlier this year to ensure Marriott complied with the settlement terms. Last month, Attorney General Henry announced a similar settlement with Choice Hotels International, Inc., requiring that hotel chain to disclose resort and other mandatory fees upfront.
These investigations focused on the widespread practice known as “drip pricing.” In this method employed by many hotel chains and online travel agencies, fees are gradually disclosed to consumers throughout the booking process. Customers often don’t learn the total price of their booking, including the room rate plus resort fee, until the final page in the online booking process, or sometimes until they check in at the hotel. Attorney General Henry has argued that “drip pricing” is deceptive and contravenes Pennsylvania’s Consumer Protection Law.
Through this settlement, Omni has committed to prominently disclosing the total price of a hotel stay, including room rate and all other mandatory fees, on the first page of its booking website as part of the total room rate.
The settlement was filed Monday in the Allegheny County Court of Common Pleas by Assistant Director for Litigation Jill T. Ambrose.
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