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U.S. Hotel Fees on Track for a Record High in 2016

U.S. Hotel Fees on Track for a Record High in 2016
Jennifer Billock

The U.S. is about to set another record year for hotel fees, hitting an all-time high.

Even though the Federal Trade Commission is currently scrutinizing hotel fees and guests have made their frustration loud and clear, the U.S. is still on track to set an all-time high record for fees this year. Last year, hotels collected $2.45 billion; this year is looking to hit $2.55 billion. Since 2009, fees and surcharges have been increasing every year.

Part of the reason for the increase in fees, according to a report by Bjorn Hanson, a clinical professor at NYU’s Tisch Center for Hospitality and Tourism, is because hotel room occupancy increased by 2 percent from 2015. Also, more fees and charges were introduced this year, and ongoing fees were higher than last year. But, Hanson said, internet costs were overall less this year.

“There were no major changes this year,” Hanson told Skift. “The amount increased, but not by a lot, but it did set a record level of fees and surcharges. There also weren’t many new fees or surcharge categories introduced, maybe because most that could be introduced have been introduced. This is a year of fine-tuning for the industry, about what fees and surcharges should be in place, and at what pricing levels.”

The government could soon be cracking down on all the fees travelers have to pay. The FTC is taking note of the charges enforced by hotels, and in February this year, legislature joined in—Missouri senator Claire McCaskill said that she planned to introduce legislation to combat the fees.

[Photo: WIKIMEDIA COMMONS]

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1 Comment

  1. rylan

    September 1, 2016 at 7:48 am

    Not surprising… hotels have gotten addicted to the crack that is junk fees, much like airlines did.
    Some of the worst examples are the exorbitant ‘resort’ fees that cover things you would normally get for free like internet and gym access.

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