Keyser

its a government levied tax in some states in india....it has nothing to do with the hotels & chains....delhi just happens to be one of the places where this is charged....

Blueskyheaven

Is it all hotel chains in DEL?

I was gonna book a 6 days award reservation but the extras makes me unhappy.

Is it true that the extras are charged at Hotels in Central New delhi only?

Keyser

all hotels in delhi, chain or otherwise....has nothing to do with central delhi....

Blueskyheaven

All hotels worldwide charges taxes including Delhi, India but when you book award stays, the tax is usually supposed to be included right? Why hotels in Delhi India charges taxes on top of points? it shows almost 30% tax charge on awards.





Hyatt Regency Delhi

Bhikaiji Cama Place, Ring Road

New Delhi, 110066, India

Quoted rate is subject to "15% Luxury Tax, 8.65% Service Tax and 3% Service Charge". Luxury Tax amount will apply on published rate of room or suite type guest resides in during the stay, which may vary from the rate guest is booked on. Luxury tax is applicable on all room nights irrespective of the rate value. The hotel can only provide an estimate of taxes at the time of reservation. Taxes are subject to change without prior notice.

Hyatt Regency Delhi would like to request that all guests carry a valid form of photographic identification, such as a passport or driver's license and a company ID. Guest will be required to produce this upon arrival. Please look for Hyatt placard at meeting point. An amount equal to stay bill will be charged at check-in/during stay to facilitate speedy check-out

Keyser

my understanding is that it is supposed to be included but i believe the government has asked hotels to charge luxury tax on top of this in delhi....

the luxury tax has recently been increased by the government to 15% & since its charged on rack rate, your final tax amount exceeds 40% of your room rate....my most recent stay last week ended up with me paying 42% tax on my room rate....its becoming crazy....

Blueskyheaven

The Hyatt Delhi shows other taxes besides the luxury on awards. What about that?
I copied & pasted above.

You paid 42% tax on awards? if the cash rate for standard award night is $200 , I should expect to be charged around $90 a night?

If that's true, I 'd rather book a non chain local hotel with cash. I can get a room for $30 a night including whatever they would have charged if booked with points.

Keyser

no clue....i've never booked an award stay in delhi....

not on an award stay....my room rate was inr 6,000 & the total amount i paid was inr 8,540....so the tax amount came to a little over 42%....

makes sense....

yosithezet

But if you were upgraded to a suite that has a rack rate of say $600 you would be paying 42% of the $600.

Keyser

the calculation is a bit more complicated that that....

lets suppose your room rate is $200 & you were upgraded to a suite with a rack rate of $500....you won't pay 42% of $500....instead you would pay 1.25% vat on your original rate ($200), 8.40% service tax on your original rate ($200) & 15% luxury tax on the rack rate ($500)....

that would total $2.50 + $16.80 + $75.00 = $94.30....

that comes to 47.15% total tax on your original $200 rate....

GUWonder

Hotels really should develop a better disclosure practice at the time of booking to make it clear to customers what the total charges to just stay at the property will be. Customers (even at "luxury" properties) don't deserve (and can't all afford) unexpectedly costly financial surprises -- surprises that hotels could avoid if the hotels had the will to do so, as they know the rack rate and applicable taxes for each and every room at the property. Hotels are well capable of assigning rooms based on the room type booked and at least making it explicit what the maximum tax mount will be since they already know the rack rate of each and every room on premises. If hotels did this, it would help customers to avoid nasty financial surprises at check-out.

Keyser

i agree....i know the fhrai (the federation of hotel & restaurant associations of india) is trying to fight this whole luxury tax issue with the government....

for this reason alone i refuse any potential upgrade during check-in in delhi....the rack rate taxes are just out of control....

oliver2002

To be fair, Hyatt Delhi was very clear about this in the booking confirmation:

GUWonder

Is that meant to be sarcastic or a demonstration of situational irony?

To be fair, that isn't all that clear when it's clear that the hotel isn't disclosing the "published room rate" at the time of booking. And last I was there, they weren't even disclosing the "published room rate" at time of check-in.

In other words, nothing was very clear about the total charges applicable for just my booked room until I got the folio to check-out.

Blueskyheaven

Am I paying 26. 65% extra for any award stay at any Chain hotels in Delhi?

If the club room I book with points costs $500 in cash a night, I will be paying $133.25 a night in taxes?

"15% Luxury Tax, 8.65% Service Tax and 3% Service Charge"

IAN-UK

dunno about included, the percentages of zero room rate are simply zero.

The was so much mistrust between the tax authorities and Delhi hotels that they (the tax lot) introduced a "simple" decree that rooms should be taxed on their agreed rack rate rather than on whatever amount had been negotiated between hotel and guest.

This was mostly swallowed in high-end places where perhaps the majority of guests are on expenses, or otherwise accept invoices without question.

The difficulty, of course, comes with upgrades and reward stays. To avoid hassle I refused upgrades on paid stays, and simply refused to pay any tax on award stays. The latter position created some stand-offs, but I got my way - sometimes with the help of the chains "head office" and the irrefutable logic of "percentages of zero".