Originally Posted by
T_123
Yes, I believe it is a racket. The hotel I stayed at gave me folios when I checked out and the price of the rooms booked through AAdvantage were significantly less than what AAdvantage charged me. The taxes did not add up. I called AAdvantage and they said that the hotel was not supposed to give me the folios because it showed the contracted rate that AA has with the hotel and that the price difference is the commission that AA makes. I asked why AA charged me taxes on their commission. They had no answer. but, this might explain the different tax rate you saw. If they are charging tax on the commission, it could be tax in a different state/different rate. Needless to say, I will never book through them again.
Not a racket; a broken booking engine. The original post (posted prior to the current incarnation of AA hotels) highlights nonsensical "taxes and fees". The nonsensical taxes and fees continue with the current incarnation of AA hotels. As an example, the first option lists a $100 room and $15 taxes and fees but the second options list a $100 room and $115 taxes and fees. The $100 room with the $15 taxes and fees is the better option...
As to the folio, nothing out of the ordinary. Award bookings are the same setup. The loyalty program received 40,000 points from you and pays the hotel $100. The going rate for the room is $300. Such is the price the hotel pays for the sign on the building.