Fees and surcharges charged by US hotels are on track for a new record in 2016, according to a report by NYU School of Professional Studies professor Dr. Bjorn Hanson.
Hotels are expected to reap $2.55 billion in 2016, up from an estimated $2.45 billion last year.
Part of the increase comes from an estimated 2% occupancy growth, Dr. Hanson says, yet the unit cost and number of different fees is still rising.
The report highlights the growing practice of charging for a specific room, early check-in and unattended parking at hotels in suburban areas.
However there was a reported decrease in the fees and surcharges being collected for high speed Internet as free in-room Wi-Fi is no more just a luxury, but a necessity for both business and leisure travelers.
Hanson’s report notes hotel companies are increasingly being more up-front about extra fees after accusations of ‘deceptive practices’ by not disclosing the full cost until checkout.
That sparked the Federal Trade Commission to call for new legislation to ensure all hotel fees are disclosed at the time of booking.
