# Beware hidden DMP fee at Toronto hotels



## james4beach

I travel around Canada a lot so I'm very familiar with normal practices at hotels, the taxes, etc.

There is something weird that popped up in Toronto recently. Some hotels participate in a voluntary program called the Destination Marketing Program (DMP) which is a fundraising effort to market tourism in the Greater Toronto Area.

*Hotels that participate in DMP will charge their guests an additional 3% fee on top of the normal, mandatory taxes.* An important point here is that this is not a mandatory fee, it's not a government tax, and only hotels that opt-in will charge their guests the amount.

There's a couple things that make me angry about this. One is that hotels are not disclosing the extra fee to Hotwire and Priceline (for 'mystery' hotels), which means that after you book and pay for the hotel through these sites, you are going to have to pay an additional fee ... which is a complete _surprise_ at that point... at checkout. You'll ask, what the hell is this? And they'll say - oh it's just the usual DMP. Well it's not usual, and they chose to not tell Hotwire or Priceline about it. I checked. Priceline said it's not on the record of this hotel's fee structure.

The second thing that bugs me is that the whole scheme seems designed to be too small to care about. So you check out and get an invoice for $4 charged to your credit card, big deal right? When I asked the hotel manager he claimed that all hotels charge it. He lied to me... all hotels do not charge this.

I don't think this is right and I suspect it's breaking the law. But because I can't figure out what rule it breaks, I'll just start by listing some hotels that are known to charge the hidden DMP fee along with links to some reviews as evidence

Novotel Toronto Centre
Eaton Chelsea (formerly Delta Chelsea)
Toronto Marriott Bloor Yorkville
Courtyard by Marriott Toronto Downtown

That last one is my review. Notice how the manager of the Courtyard Marriott Downtown responded and said "We advise all 3rd parties of this fee"
- that's a lie. Priceline was not informed of the fee, otherwise it would have been included in the total they pre-charged me. I reported this to Priceline already.

He also wrote "in fact all hotels in Toronto charge this fee"
- that's also a lie. All hotels don't charge this... it's voluntary.

I smell a minor fraud going on.


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## james4beach

Also if someone can refer me to the correct regulatory body or government agency, I would like to put an official complaint in writing. Can someone point me in the correct direction?

Complaint #1 is that the hotel misrepresents this as a mandatory fee that all hotels charge (not true).
Complaint #2 is that they don't inform the 3rd parties (like Hotwire, Priceline) of the fee, when it clearly can be included in the total quote
... I happen to know it can be included in the total, because when I booked through Marriott directly the DMP was summed into the total as it should be
Complaint #3 is that the hotel claims to have informed the 3rd parties when they clearly did not
Complaint #4 is that due to the hidden fee they are under-reporting the price of their rooms in the open market
... and I'm sure that's an unfair trade practice

I'm far too anal to let this slip just because it amounts to pocket change. Sum across all tourists, all corporate customers, and it's millions$ in misrepresented hotel charges. Plus all the foreign tourists that are getting ripped off.

First I will write a formal complaint letter to the manager of the hotel. If there's no serious response and indication that they will be correcting the situation, then I will submit to the appropriate government agency. Does anyone know if one of these is the appropriate place to go? Ministry of Consumer Services and Competition Bureau are two places I thought of.

http://www.sse.gov.on.ca/mcs/en/Pages/Complaint_Steps_to_File.aspx
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/h_00018.html

Remember that the coordinated activity these hotels are engaged in, under-states the price of their rooms versus competitors. Perfect example: while I was doing Priceline bidding, if the hotel had properly told Priceline about its DMP fee, then for the stated quote amount I may have gone to a competing hotel. Instead I ended up at this hotel, plus the hidden fee _post hoc_, which means that this hotel grabbed my business by misrepresenting the price of their service.


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## Cal

Completely agree w you, it should be included in the original price. Then you can make a decision based on a price comparison.


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## Echo

Not sure about Ontario, but in Alberta the DMF tax is collected by hotels and paid to the local tourism office for the purpose of destination marketing. They are not legislated by the government but instead follow a voluntary code of conduct. But since all the hotels are members of their local tourist associations, I'd guess that DMF's are subsidizing some of the normal marketing and advertising activity that the hotels used to pay for on their own (billboards, tradeshows, tourism guides).

http://www.ahla.ca/wp-content/uploads/2012/08/AHLA_DMF_form_F.pdf
http://www.ahla.ca/about-us/government-relations/destination-marketing-fees/

Perhaps the most effective thing you could do is to request an audit be done on whoever is administering the fund. I'll bet there's some funny stuff going on there.

As for disclosure on sites like Priceline, it looks hotels have the right to charge "other fees" over and above the amount you pay to Priceline:

"Depending on the property you stay at you may also be charged (i) certain mandatory hotel specific service fees, for example, resort fees (which typically apply to resort type destinations and, if applicable, may range from $10 to $40 per day), energy surcharges, newspaper delivery fees, in-room safe fees, tourism fees, or housekeeping fees and/or (ii) certain optional incidental fees, for example, parking charges, minibar charges, phone calls, room service and movie rentals, etc.. 

These charges, if applicable, will be payable by you to the hotel directly at checkout. When you check in, a credit card or, in the hotel's discretion, a debit card, will be required to secure these charges and fees that you may incur during your stay. Please contact the hotel directly as to whether and which charges or service fees apply."


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## Addy

We were not made aware of a $35 resort fee when we booked a room via Priceline, the resort also stated they had made Priceline aware but really at that point, you are stuck staying at that resort as you have already paid Priceline for and it's non-refundable, and the resort will not allow you to stay without paying this additional fee. I think it's very underhanded and I will not be staying at that resort or any hotel I find charging what I consider hidden fees (such as listed by the OP). We travel often and I consider it complete b.s. to hide fees to guests.


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## kcowan

When I was dealing in the tourism industry 13 years ago, I discovered this fee in BC. It was pretty standard. The tourist bureau uses the funds for regional promotion of the destination. They use them to attract conventions into town, for example. It is ironic that they charge people who actually come. It is especially egregious if you are there on business.

But because it is a commonly accepted form of funding such activities, I think you are pushing a rope to get any action.

Similarly, car rentals out of YYZ charge an extra (undisclosed on hotwire etc.) fee when compared to rentals in town. But the rates in town are still higher because they are not as competitive as those at the airport. I took that one on back in the day and got a letter of explanation from the airport authority. They say they provide a free parking lot to the taxis and limos but pay for it with the surcharge.


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## james4beach

OK maybe this kind of fee exists elsewhere (examples are given of BC's fee, or the car rental fees) but the big point I'm after is disclosure within quotes

When I book car rentals either directly with the agency, or through travelocity, I get a quote well in advance that includes all taxes & fees together. So sure there are additional airport special location fees but they are disclosed on the quote, which is the correct thing to do. I can see the total number and decide whether I'll take it or leave it.

What Addy says is along the lines of what's wrong wrong here. In his case, a resort fee that's not disclosed. In my case, a DMP fee that's not disclosed. So through Priceline you have a quote (the 'bid' total) but it's not a proper total. When the consumer decides to take it or leave it, they're deciding based on an incomplete quote.

That's like bait & switch - which is illegal

This can't be right. Maybe Priceline is to blame here, if they're washing their hands of it saying it's "other fees". Reason this is not proper is that if Addy's $35 example always goes with that property, and the DMP always goes with mine, then I don't see any reason it shouldn't be included inside the total. This is muddier now... I can't tell if Priceline or the particular hotel is to blame.

The immediate action I will take is that whenever I use Priceline or Hotwire from now on, I will assume there's another 5% hidden fee in the total that I won't have the pleasure of discovering until checkout. Basically the price of all Priceline hotels just went up by 5% for me.


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## james4beach

But a simple question (which I am trying to contact the hotel manager to ask is), why is Priceline not including this DMP fee rolled into their total quote?

The taxes are already in there. Why isn't DMP in there too? This DMP at a particular property goes along with every single booking, just like a tax.

It's either the hotel's failure to report the DMP, or Priceline's failure to include it in the total. One of them is guilty of under-representing the price of the room and thus one of them is guilty of showing a misleading quote for the purpose of drawing in business


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## Echo

I got the impression from reading through Priceline's terms and conditions that it "estimates" taxes for each city and has no way of knowing what each individual hotel charges for add-on's (like you said, most hotels in Toronto charge a DMF, but not all do). I suspect they DO have a way to know exactly what each hotel charges but they choose not to implement it.


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## james4beach

Echo, yes putting myself in the shoes of implementing such a system I could envisage what you're describing... perhaps they estimate taxes and then compute a total, effectively giving you a "lower bound" of the hotel price. That's also good from a marketing perspective since it produces what appear to be the lowest prices possible, although inaccurately in some situations.

I will ask for more clarification from the hotel manager, and then depending on what he says, prepare a letter to officially complain to either the hotel, Priceline, or both.

And once I complain to the Competition Bureau, I suppose the bureau can figure out which of them is responsible.


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## HaroldCrump

Echo said:


> I got the impression from reading through Priceline's terms and conditions that it "estimates" taxes for each city and has no way of knowing what each individual hotel charges for add-on's (like you said, most hotels in Toronto charge a DMF, but not all do). I suspect they DO have a way to know exactly what each hotel charges but they choose not to implement it.


Priceline knows *exactly* what the taxes are in each state, province, jurisdiction, etc.
It is included in the final price you pay Priceline.

The Priceline price is supposed to be a "walk away" price i.e. you pre-pay Priceline, stay at the hotel, and then simply walk away.

The only part of the pricing that Priceline is not responsible for is any forex conversion on your credit card.

Regarding resort fees, Priceline clearly warns you if your selected zone includes hotels that charge resort fees.
They always say something like : _you may be charged resort fees_.
This is because they are never sure which hotel will accept your bid, therefore, they cannot state in advance whether you will (or will not) be charged resort fees.

I believe this is as fair as they can get, given their model.

I have been using Priceline for nearly 14 years now and have had very few problems.

If you select Resort quality in any of the zones, then it is almost certain you will have to pay resort fees.
Some hotels allow you to negotiate away the resort fees when you check in.
I have successfully negotiated waiving resort fees upon check-in in a few cases.

As for this DMP fee, I suspect this is a pure rip off at the hotel level.
Priceline does not know about it, and cannot include it in their pricing.

James4B -- have you tried contacting Priceline or Hotwire about this?


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## james4beach

Harold I agree with your description of what should be happening.

I called Priceline and complained to the phone rep about the DMP fee. They told me to hold on the line while they phoned the hotel manager. Then they came back on the line and said the manager says that this is a mandatory extra fee, along the lines of the resort fee, and therefore it can be charged to me without Priceline having to roll it into the quote.

I said back to them, well now you know it exists, are you going to add it to the hotel's database? They said they would submit a note to the back office (which probably means no, they're not going to add it)

Not sure how to proceed and still not sure where the blame lies. I don't want them to get away with this bad practice just by hiding behind uncertainty of who's responsible!


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## Echo

HaroldCrump said:


> As for this DMP fee, I suspect this is a pure rip off at the hotel level.
> Priceline does not know about it, and cannot include it in their pricing.


I doubt that Priceline is ignorant of the DMF - this fee is being charged across the country. In Lethbridge, every hotel charges the fee except for the Holiday Inn Express, which is not part of the local lodging association for some reason. other cities, like Edmonton, have a different tourism association for South Edmonton than for Downtown or West Edmonton. There may be a different DMF charge based on the area of the city. I can see how this could be a pain to administer. 

Perhaps they (Priceline) initially thought they could avoid including a DMF and instead hide behind its "resort fee" disclosure, but now it's become more widespread and should be included in the final price. Not sure whether the 'blind bid' has anything to do with not being able to disclose the fee.


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## james4beach

But again in Toronto, every hotel doesn't charge the DMP fee. Hotels opt in, some charge it, others don't.

I figure this is the case because in the same trip I had Priceline bids give me two different hotels. One of them didn't ask for any more money at checkout. The Marriott, however, did ask for more money and said it was the DMP fee.

I'm kind of confused here. Any thoughts on how to proceed? I don't like having to drop an issue just because of the confusion/lack of clear responsibility.


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## humble_pie

like u said, this is a biggie, why not complain to the competition bureau, the mounties' IMET financial fraud division, the OPP, the toronto star, the globe & mail


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## Echo

Ellen Roseman writes about personal finance and consumer issues. You can reach her at [email protected] or www.ellenroseman.com


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## HaroldCrump

IMHO, the first stop should be the City of Toronto BBB.


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## humble_pie

echo & harold u guys are being serious?
_too much_


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## kcowan

I think it as an issue with Priceline. I think you need them to include all fees in their price. Use your experience with the two Toronto hotels.


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## Retired Peasant

I would think the Toronto Tourism Board might be interested. Anything that ticks off tourists isn't good for business. Then again, I don't think it's a deal breaker for someone visiting again in the future.


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## Sampson

I think the statement that "other fees may apply" covers this. In the US, it varies by state, there are electricity fees and tourism fees in California etc.

I suspect you are hooped here. Heck, they could start charging you "nice carpet" fees and it could be possible. Ask for the paperwork beforehand if you don't want to feel duped.


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## Rusty O'Toole

If this is supposed to encourage people to come to Toronto it doesn't seem to be working too well. I wouldn't be surprised if it pissed off every person who noticed it on his bill. Who thinks up these bullshit schemes? It must be someone who works for the government, or who has a PhD. No ordinary person could be that stupid.


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## kcowan

It is the tourist bureau. They reckon that by taxing hotel rooms, they will recover their costs from a small percentage of tourists who actually stay in them. It is not perfect. But the other choice is to load it on the general tax payer who already lives in the city.

And it is not just Toronto. BC and Alberta also do it.


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## james4beach

I understand the concept but the implementation seems flaky. I don't actually know if all Toronto hotels are charging DMP. Only some of the hotels I stayed at showed it on the bill. Perhaps others roll it into the base price.

That's why I came on here and announced that the Marriott brands are charging DMP. All else being equal, if other hotels don't charge it, then Marriott hotels are 3% more expensive than the competition.

I think my beef is with Priceline, who failed to roll it into the taxes & fees. If it's a standard tax then it certainly shouldn't appear as an extra bill after somebody pre-pays for a hotel room


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## Toronto.gal

james4beach said:


> I think my beef is with *Priceline..*..


You should have bought the stock in your 20's. 

Up another 5% to $1,071+.
https://www.google.ca/finance?client=ob&q=NASDAQ:PCLN


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## Rusty O'Toole

kcowan said:


> It is the tourist bureau. They reckon that by taxing hotel rooms, they will recover their costs from a small percentage of tourists who actually stay in them. It is not perfect. But the other choice is to load it on the general tax payer who already lives in the city.
> 
> And it is not just Toronto. BC and Alberta also do it.


So it is for the benefit of the tourist bureau. I say the hell with them and let them go get a real job. If what they are doing has any benefit for anyone besides themselves, such as the tourist business, let those who benefit pay for it. If what they do is not worth paying for then they should quit.


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## Retired Peasant

Hey James,

Marketplace is looking for 'dumb charges'. Go post your complaint there.
 http://www.cbc.ca/marketplace/blog/whats-canadas-dumbest-charge


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## james4beach

Thanks, I'll go do that now.

One of the hotels I complained about on tripadvisor also replied that all Toronto hotels charge the DMP. That's not true; all hotels don't. Only selected hotels (like Marriotts) choose to charge their customers extra for it.


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## james4beach

And here is the letter I sent to the hotel manager



> Just a heads up that I submitted a couple invoices from my stays at
> the Courtyard by Marriott Toronto Downtown to CBC's Marketplace
> program. They are asking people to submit the "dumbest" charges
> they've seen.
> 
> I am drawing their attention to the DMP fee charged by your hotel and
> some others. This is a voluntary marketing program fee under your
> hotel association, I believe. The voluntary nature is even described
> right on the government MTC site.
> 
> In your feedback to my tripadvisor post, you said that all hotels
> charge this. I don't believe that is true. For instance I also
> stayed at Bond hotel and Renaissance, neither of which charged this 3%
> DMP fee.
> 
> Now it's possible that Priceline (in the case of my booking) should
> have rolled the DMP fee into your total room price. I contacted
> Priceline several times, and they did not seem to be aware of this
> fee. I strongly suggest you instruct Priceline and Hotwire to
> properly include this fee into their all-in charge.
> 
> Kind regards,


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## OhGreatGuru

james4beach said:


> ...One of the hotels I complained about on tripadvisor also replied that all Toronto hotels charge the DMP. That's not true; all hotels don't. Only selected hotels (like Marriotts) choose to charge their customers extra for it.


Is it possible that some hotels simply include it in their price rather than tacking it on as an extra?


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## james4beach

Yes, possible. But keep in mind this is a voluntary fee the hotel chooses to collect.

The hotels could also charge me a "kleenex replacement fee" (KRF). Don't you think it would be stupid if they did that?

All of these things are supposed to go into the room rate.
The taxes are the only extra thing.


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## OhGreatGuru

I agree with you it should be included in their price, otherwise it's misleading advertising. But if you travel much you will find it is not uncommon in many cities/countries to a charge a DMP or a "local tourist tax" on top of their nominal rate.


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