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Coming controversy: hotel fees approaching airline charges
Hotel fees are about to start the type of attacks consumers have so far reserved for the airlines. US hotels will earn a record US$1.8 billion this year, says a new study by well-known Bjorn Hanson, a consultant and professor.
"The increase (from $1.7 billion in 2010) reflects a combination of 4 percent to 5 percent more in occupied hotel rooms than in 2010, plus new or higher fees and surcharges at many hotels, especially resorts," said Hanson. He adds:
"Most (fees and surcharges) have incremental profitability of 80 percent to 90 percent or more, so they represent significant contributors to industry profits."
Hotel fees and surcharges emerged in the late 1990s. They started with resort fees. They have increased yearly.
Hotels also often charge for:
- Early departures
- Canceling reservations
- Internet Wi-Fi
- Receiving faxes or packages
- Delivering room service
- Restocking the mini-bar
- Using in-room safes
Group customers have also seen increased charges for hotel staff at events, charges for setting up meeting rooms and baggage holding fees.
Hotel fees and surcharges emerged in the late 1990s, starting with resort fees, and have steadily increased in recent years.
Hotels also often charge for early departures, canceling reservations, Internet Wi-Fi, receiving faxes or packages, delivering room service, restocking the mini-bar and using in-room safes.
By David Wilkening
David
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