Resort fees

4,657 Views | 45 Replies | Last: 4 yr ago by bthotugigem05
Spore Ag
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Notice this is becoming more predominant with hotels. Almost a bait and switch with a cheap hotel price but then tac on an additional resort fee.
A way for hotels to avoid onerous city taxes, I Guess but cities are catching on.
txags92
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It is mostly a way for the hotels that get a high proportion of guests using points to screw those guests over. Sure, you got 7 free nights with your points...but we are going to hit you with a $150/ night resort fee. It would be the same as the airlines hitting every fare (including points fares) with a fuel surcharge that was half the price of the original ticket.
BSD
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Damn British Airways fuel surcharges are why I still have 350k points with them. I'll probably have to use them all domestically on AA...or go to Machu Picchu.
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Keeper of The Spirits
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The fuel surcharge is only through LHR but still
Bulldog73
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Yep! They've quickly become my preferred hotel chain. They just gave a somewhat limited footprint, but I love their all inclusive options.
Matsui
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Just more fees yup.
62strat
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txags92 said:

It is mostly a way for the hotels that get a high proportion of guests using points to screw those guests over. Sure, you got 7 free nights with your points...but we are going to hit you with a $150/ night resort fee. It would be the same as the airlines hitting every fare (including points fares) with a fuel surcharge that was half the price of the original ticket.
wouldnt you be paying the same resort fee even if not using points and paying for room?

So how is that screwing you over?
BMX Bandit
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62strat said:

txags92 said:

It is mostly a way for the hotels that get a high proportion of guests using points to screw those guests over. Sure, you got 7 free nights with your points...but we are going to hit you with a $150/ night resort fee. It would be the same as the airlines hitting every fare (including points fares) with a fuel surcharge that was half the price of the original ticket.
wouldnt you be paying the same resort fee even if not using points and paying for room?

So how is that screwing you over?

because you are being told its a "Free" room when in fact you pay $150.

Did you really not understand that?
txags92
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When you spend a bunch of money to "earn" enough points to exchange them for "free nights", it is a bit of a buzzkill to then find out you are still going to have to pay a $150 "resort fee" for each "free night". So maybe screwed over is a bit strong, but bait and switch probably isn't...
62strat
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BMX Bandit said:

62strat said:

txags92 said:

It is mostly a way for the hotels that get a high proportion of guests using points to screw those guests over. Sure, you got 7 free nights with your points...but we are going to hit you with a $150/ night resort fee. It would be the same as the airlines hitting every fare (including points fares) with a fuel surcharge that was half the price of the original ticket.
wouldnt you be paying the same resort fee even if not using points and paying for room?

So how is that screwing you over?

because you are being told its a "Free" room when in fact you pay $150.

Did you really not understand that?
Is it really hard to understand that 'fees may apply'? Just like when redeeming flight points. At least not all hotels have resort fees. Some are 100% free when using points.

If the resort fee wasn't there for cash payers but then showed up for point redeemers, that would be different, and would be screwing you over.

But I will not understand how you can think using 50,000 points to knock off $400 a two night stay, but still have to pay a fee that even cash buyers have to pay, is screwing you over. You saved $400 over the cash buyer.
62strat
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txags92 said:

When you spend a bunch of money to "earn" enough points to exchange them for "free nights", it is a bit of a buzzkill to then find out you are still going to have to pay a $150 "resort fee" for each "free night". So maybe screwed over is a bit strong, but bait and switch probably isn't...
how many have a $150 resort fee per night? That seems overly excessive to help your argument.

I booked a very high category HI Marriott and it was $35/ night. $150 I'm guessing is an exception, not the norm.
Counterpoint
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I don't understand resort fees. If a fee HAS to be paid, they should have to include it in the per night charge.
Spore Ag
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Most resort fees I saw in NYC were $35 to $50 a night with one at $90. I think cities will contest this soon.
txags92
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My point, regardless of whether it is $35 or $150/ night, is that if it is a fee that applies to every reservation, then why not include it in the room rate? And the answer to that question is because then you wouldn't get to charge people paying with points. The reason the resort fee is separate from the room rate is so that they can squeeze more money out of people booking with points.
Spore Ag
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No I agree with the total rate accountability but the resort fee I thought was a so called amenities fee so it is tax free which is my point that cities will fight it.
ThunderCougarFalconBird
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Its a work-around for the usual city/state tax gouge for hotel rooms.
62strat
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txags92 said:

My point, regardless of whether it is $35 or $150/ night, is that if it is a fee that applies to every reservation, then why not include it in the room rate? And the answer to that question is because then you wouldn't get to charge people paying with points. The reason the resort fee is separate from the room rate is so that they can squeeze more money out of people booking with points.
you can also call them and say you don't want to pay it. Apparently people have had luck doing this. Try doing that with the cost of the room though.
JMac03
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From what I understand, it is currently in the works to have the resort fees eliminated or done in another manner. Not sure if it is state by state, but so many people have complained I think it is in the courts now. I cannot remember if one state recently has done away with them, but I remember seeing something about it in the past few months.

The big ones are Vegas - there are times of the year you can book a hotel room for under $30-$50 a night, and then get popped with a $45/night resort fee. I had clients who with flights and hotel booked for like $450 for 4 nights - their resort fees were half of what it cost them for the overnight trip. It is crazy (I seriously think their room was $20-$25 a night - it was off season, and it was Harrah's or something like that). Their resort fee was double their room cost.
txags92
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Several of the bigger resorts in Grand Cayman charge more than that. They are $50-$85/night at the bigger resorts there.
62strat
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JMac03 said:

From what I understand, it is currently in the works to have the resort fees eliminated or done in another manner. Not sure if it is state by state, but so many people have complained I think it is in the courts now. I cannot remember if one state recently has done away with them, but I remember seeing something about it in the past few months.

The big ones are Vegas - there are times of the year you can book a hotel room for under $30-$50 a night, and then get popped with a $45/night resort fee. I had clients who with flights and hotel booked for like $450 for 4 nights - their resort fees were half of what it cost them for the overnight trip. It is crazy (I seriously think their room was $20-$25 a night - it was off season, and it was Harrah's or something like that). Their resort fee was double their room cost.
http://killresortfees.com/vegas
putu
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it has nothing to do with taxes. in fact, you will pay occupancy tax on your resort fee.
for the most part, these fees are charged due to the high overhead that resorts have. it takes a lot more staff to run a resort than a traditional hotel. you have additional positions, such as landscapers, pool attendants, etc that are in non-revenue generating roles. for the most part, resorts do try to give you a little value add for these fees, such as wifi, bottled water, sometimes parking. varies by resort.

remember, resorts (and Vegas hotels) will offer deals to get you into the hotel knowing you will spend money in other places. dont assume that since you got a killer deal on a room that everything should be deep discounted as well.
"Cal (9-3) vs. Texas A&M (9-3). On the list of rare sights in Southern California, a team running the option -- as the Aggies like to do with QB Stephen McGee -- ranks right up there with real breasts and 12 inches of snow." Stewart Mandel CNNSI
ThunderCougarFalconBird
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Occupancy tax is higher than sales tax almost everywhere. Gotta pay for that new stadium.

That said, if running a resort is expensive, what's so hard about baking the cost into the rate you're charging? Or at least why not be up front about it? Surely sophisticated resort operators aren't so understaffed or poorly managed that they can't just spit out an all-in total, right?

Sort of reminds me of how airlines used to advertise plane tickets. Sure it's $99 round trip to NYC, but by the time you pay the fuel surcharge, the flight attendant "service" charge, the booking fee, the incremental gouging excise, and the additional fuel surcharge, it comes out to $399 round trip.
montejr
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Vegas is starting to sneak in "service fee" at bars and restaurants on the strip too. You can asked to have it removed from my understanding IF you notice it.
putu
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Occupancy tax has little to do with stadiums. most cities have those funds only go toward tourism marketing and sales teams (convention/visitors bureaus), which are vital to attracting additional business to a destination and benefits the entire community.

I think a lot of industries as trying to find ways to grow, and sometimes even just maintain, profits. Resort fees have been around for a long time and arent really hidden from the consumer. Now, we are seeing more urban hotels and non-resorts charging them.
"Cal (9-3) vs. Texas A&M (9-3). On the list of rare sights in Southern California, a team running the option -- as the Aggies like to do with QB Stephen McGee -- ranks right up there with real breasts and 12 inches of snow." Stewart Mandel CNNSI
txags92
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putu said:

it has nothing to do with taxes. in fact, you will pay occupancy tax on your resort fee.
for the most part, these fees are charged due to the high overhead that resorts have. it takes a lot more staff to run a resort than a traditional hotel. you have additional positions, such as landscapers, pool attendants, etc that are in non-revenue generating roles. for the most part, resorts do try to give you a little value add for these fees, such as wifi, bottled water, sometimes parking. varies by resort.
All of those are great reasons for the resort to cost more per night than a typical hotel. None of them are great reasons to need to add a separate fee on top of the per night room rate. If every guest has to pay the fee for every night they stay at the hotel regardless of how much or little they partake in the features of the resort, then the "fee" should be included in the room rate. The only reasons not to are 1) so you can force people who have earned "free" nights through their loyalty to your hotel chain to pay something for each night they stay or 2) to be able to charge the guest more without having to give away 10-30% to local occupancy taxes. It is an obnoxious practice and should not be legal imo. It is the equivalent of selling people an airline ticket and then charging a "pilot fee". Yes, every plane needs a pilot and yes every passenger will pay to have a pilot on board, so there is no reason to make it a separate fee. It is also all about making the resort look cheap to online searches based on nightly rates, when it is not. It is deceptive and shouldn't be allowed.
Vernada
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putu said:

it has nothing to do with taxes. in fact, you will pay occupancy tax on your resort fee.
for the most part, these fees are charged due to the high overhead that resorts have. it takes a lot more staff to run a resort than a traditional hotel. you have additional positions, such as landscapers, pool attendants, etc that are in non-revenue generating roles. for the most part, resorts do try to give you a little value add for these fees, such as wifi, bottled water, sometimes parking. varies by resort.

remember, resorts (and Vegas hotels) will offer deals to get you into the hotel knowing you will spend money in other places. dont assume that since you got a killer deal on a room that everything should be deep discounted as well.
This is utter BS. You must work for one of these resorts.

If your costs are higher, the honest / transparent way to reflect this is with higher room prices. Like someone else noted, you can't stay at the hotel w/o paying the resort fee so why not have it all together? Dishonesty is the only thing I can think of.
dcAg
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Ive heard that you can fight the resort fees if you actually didnt take advantage of any of the facilities. Some hotels may work with you but probably most wont.
Jock 07
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Where and when did resort fees first start. The first place I can recall seeing them was in Vegas 10+ years ago. They do seem to be much more prevalent today
BMX Bandit
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putu said:

Occupancy tax has little to do with stadiums. most cities have those funds only go toward tourism marketing and sales teams (convention/visitors bureaus), which are vital to attracting additional business to a destination and benefits the entire community.

I think a lot of industries as trying to find ways to grow, and sometimes even just maintain, profits. Resort fees have been around for a long time and arent really hidden from the consumer. Now, we are seeing more urban hotels and non-resorts charging them.
A big part of why they are so prevalent now is third party booking sites. Expedia only gets a cut on the advertised room rate, not the resort fee.
62strat
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txags92 said:

putu said:

it has nothing to do with taxes. in fact, you will pay occupancy tax on your resort fee.
for the most part, these fees are charged due to the high overhead that resorts have. it takes a lot more staff to run a resort than a traditional hotel. you have additional positions, such as landscapers, pool attendants, etc that are in non-revenue generating roles. for the most part, resorts do try to give you a little value add for these fees, such as wifi, bottled water, sometimes parking. varies by resort.
It is the equivalent of selling people an airline ticket and then charging a "pilot fee". Yes, every plane needs a pilot and yes every passenger will pay to have a pilot on board, so there is no reason to make it a separate fee.
It's no different than ticketmaster is today. 'Look, so and so is only $50 for good seats!'

After checkout, oh it's actually $78 because of convenience fees. Yet if you inconveniently drive to the venue, that convenience fee is still added.


Didn't airline tickets used to kind of be like this? You had an advertised airfare charge, then you'd see the fuel surcharge and other bs added after you went to check out or pay. Now, as far as I understand, it's mandated that the advertised price is the bottom line price.
If you buy a spirit airfaire, it actually still shows you the break out of ticket vs. fuel.



putu
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our industry has changed several times over the last 20-30 years, just like the airlines. Resort fees (at actual resorts and not urban properties) started in the 90's.

it was once popular to charge a la carte for everything; fitness center, phone calls, wifi, sometimes pool, parking and other activities. there was enough customer outcry about being nickle and dimed that they started including it all in one charge. Wifi in particular has changed several times, from being free to a charge.

I agree that all the pricing should be upfront and for the most part it is, at least at my company and most of my competitors. I no longer work at a resort but did in the past. I'm just trying to give some insight to our side of the industry.

as some others have noted, you see this all over the place. from ticketmaster, to car sales (destination charge?) to utilities (my electric bill has a $35 monthly admin fee, regardless of how much the bill is).
At some point there may be enough political pressure to pass legislation to end these fees. But be warned, you will then see hotels go back to the a la carte pricing for everything. which, for some people is fine, they just want a room and wont use the amenities.







Vernada
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Just because you can point to other examples doesn't make it any less dishonest. If the fee was optional having it separate wouldn't be an issue. But when it's mandatory regardless of the consumers usage, it's 100% dishonest to not have it included in the room rate.
maverick12
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I don't see how it is dishonest for the resort to charge resort fees rather than a single rate. We travel quite a bit and I've never booked a room and been surprised by hidden resort fees. The resort fees have always been clearly stated when i booked. It doesn't make any difference to me if I'm paying room rate + resort fees, or just the room rate with no resort fee. I'm just comparing the bottom line anyway.
Vernada
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Is it an optional charge?
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