InterContinental Hotels: Priority Club & Inter-Continental Ambassador - “Service charge” added to Hotel Indigo (Waco) rates after booking?

Hotel Indigo recently opened a new location in Waco, TX.

I noticed that the rate does not include a “service charge” (currently $4) which is subject to change even after booking. (It's presented as a tax/fee but doesn't seem to go to any government entity.)

Is this a new Priority Club problem? Are there other non-resort PC hotels that apply such a hidden fee to their rates?

A 5 - 25 % service charge is the norm at this side of the world, at any hotel or hotel group. It most likely wouldn't be allowed in the EU the way it is handled now during the booking process, but it seems like the US is catching up to Asian standards. You can always ask the hotel for clarification.

The service charge won't change after booking; the clause is for sudden changes in tax rates.

I recall having a 'service charge' added at a hotel in Ireland a few years ago. They told me it was the norm there. I refused to pay it as it was never disclosed when booking and they didn't argue further. It would not be permitted under UK law.

Thank you for the information!


It looks like the fee hasn't made it to Orbitz or Travelocity (they just show rate and tax). So booking on priorityclub.com costs $4 extra per night. The Best Price Guarantee is being advertised on the front page of priorityclub.com, but I wonder just how serious IHG is about it.

On one hand, the terms (http://www.priorityclub.com/rewards/us/en/customer-care/lowest-internet-rate-terms-conditions) say “Any taxes, tariffs or fees imposed by a governmental authority (e.g., federal, state or local) will not be considered as part of the Best Price Guarantee claim” which isn't the case here. On the other hand they also say “The Guarantee does not include extra fees such as extra person charges…” so they might just include this “service charge” in those “extra fees” (though it would make the Best Price Guarantee meaningless).

(Actually, reading the Travelocity terms carefully, it looks like the hotel might still try to charge prepaid guests when they try to check in.)

Does anyone have advice on whether the Best Price Guarantee would apply?


Also, it looks like priorityclub.com isn't calculating tax on the “service charge”. It's pennies per room-night, but the hotel would be evading a tax bill of $21,015 multiplied by the occupancy rate each year.

The service charge won't change after booking; the clause is for sudden changes in tax rates.

It shouldn't, but the priorityclub.com site says

As taxes and service charges may fluctuate from the time a reservation is made until the actual stay and during the actual stay, the Total Price is an estimate.

so it looks like the explicitly leave themselves room to change it later.

Hotel Indigo recently opened a new location in Waco, TX.

I noticed that the rate does not include a “service charge” (currently $4) which is subject to change even after booking. (It's presented as a tax/fee but doesn't seem to go to any government entity.)

Is this a new Priority Club problem? Are there other non-resort PC hotels that apply such a hidden fee to their rates?
This is more and more the norm for USA hotels. It's only $4 so it's not as offensive as some "resort fees" and the like. I personally find them false and deceptive, but that's not the prevailing law, so for the moment, your option is to book and run the risk or book somewhere which doesn't impose these.

The FTC is now investigating (http://www.ftc.gov/opa/2012/11/hotelresort.shtm) this scam.