Resort / resident fees at Accor -an unwelcome development
Mar 3, 2019, 11:54 am
#16
FlyerTalk Evangelist
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Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
Posts: 21,918
As has been discussed elsewhere on FT, this is actually not a robbery of guests. In the US, resort fees are treated differently from the room rate for tax purposes: The hotel has to pay less taxes on resort fees.
Lower taxes -> lower costs of room provision -> one would expect the hotel and guests to share/split the benefit from the cost saving.
Obviously, another factor is that fees make hotel prices less transparent. Still, I think it's an oversimplification to state resort fees = robbery.
Lower taxes -> lower costs of room provision -> one would expect the hotel and guests to share/split the benefit from the cost saving.
Obviously, another factor is that fees make hotel prices less transparent. Still, I think it's an oversimplification to state resort fees = robbery.
Those fees have just been invented and added to generate more revenues, while not changing the room rate. So they do not rank differently from other hotels in GDS or booking engines and they can play with this “fee” to steal money from you. I say steal because all those pseudo-services and benefits were included in the room rate before. And so suddenly they feel the need to charge extra for a few services/amenities. I should need to remind you that they didn’t decrease the room rate of the same amount.
And why the turndown service should be treated differently tax-wise than the regular morning housekeeping ?
So yes, it is a robbery. It is exacctly like the airlines who introduced a fuel surcharge when jet fuel was reaching very high price and maintained it as a so-called tax (carrier surcharge) when the price came back to its regular price.
Mar 3, 2019, 2:45 pm
#17
Join Date: Jul 2005
Location: UK
Programs: BAEC GGL/Gold, Flying Blue Silver, All Accor Gold, Hilton Honours Diamond,
Posts: 527
As has been discussed elsewhere on FT, this is actually not a robbery of guests. In the US, resort fees are treated differently from the room rate for tax purposes: The hotel has to pay less taxes on resort fees.
Lower taxes -> lower costs of room provision -> one would expect the hotel and guests to share/split the benefit from the cost saving.
Obviously, another factor is that fees make hotel prices less transparent. Still, I think it's an oversimplification to state resort fees = robbery.
Lower taxes -> lower costs of room provision -> one would expect the hotel and guests to share/split the benefit from the cost saving.
Obviously, another factor is that fees make hotel prices less transparent. Still, I think it's an oversimplification to state resort fees = robbery.
in the case of Fairmont Boston all the staff I spoke to seemed embarrassed at having to charge it and didn't in any way seek to justify it in a luxury hotel especially as the hotel sends an email pre arrival stating "During your stay, you will enjoy a multitude of benefits that are part of your membership, including ... complimentary high-speed internet" but on check in they have to advise you will be charged a mandatory Facility Fee for provision of "high speed internet" amongst other dubious "facilities" which Accor advertise as Platinum benefits.
To the credit of the Gold floor manger she deleted it at checkout.
Mar 3, 2019, 9:05 pm
#19
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Join Date: Jan 2019
Posts: 123
I didn't claimed that. I claimed that different revenue streams may be subject to different tax rates in the US. Particularly, manatory resort/destination fees which, formally, provide free high-speed internet, a laundry credit, spa access or the like may be subject to lower taxes.
Those fees have just been invented and added to generate more revenues, while not changing the room rate.
Mar 3, 2019, 9:15 pm
#20
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Join Date: Jan 2019
Posts: 123
I have not seen any evidence that hotel use this to increase the total room price.
And, in fact, if there is a tax advantage to this practice, hotels' "costs" (more precisely, tax payments, but the effects are identical to a cost reduction) fall. This initially raises hotels' after-tax profits. Now standard ECON 101 logic suggests that competition will eventually lead to a lower new equilibrium price. The gains from the lower tax burden is shared between producers and consumers in the new equilibrium. Consumers' gain would be zero if and only if their demand for hotel rooms was perfectly inelastic (which it isn't).
Mar 3, 2019, 11:08 pm
#21
Moderator, Turkish Airlines Miles&Smiles & Accor ALL
Join Date: Apr 2009
Location: BRU
Programs: TK*G, Accor ALL Platinum
Posts: 7,585
Given the relevance of this topic I have merged the discussion.
starflyergold
Le Club forum co-moderator
starflyergold
Le Club forum co-moderator
Last edited by starflyergold; Mar 3, 2019 at 11:20 pm
Mar 3, 2019, 11:28 pm
#22
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First, how do revenues increase? I would assume that, initially, the total the guest has to pay remains the same, just the composition changes (lower room rate, higher resort/destination fee).
I have not seen any evidence that hotel use this to increase the total room price.
I have not seen any evidence that hotel use this to increase the total room price.
Mar 5, 2019, 8:29 pm
#23
Join Date: Jan 2011
Location: YYZ
Programs: Accor ALL Diamond, AC Aeroplan 25K, Nexus/GE
Posts: 2,731
Personally, I don't think it's about raising revenue so much as it's about making advertised rates appear better than they are. Once hotels in a certain market start the practise, others follow along. Hotels 'A' and 'B' are both charging $100 per night. Then Hotel 'A' decides to drop their rate to $80 but tack on a $20 resort fee. If hotels think consumers are stupid and don't research the all-in cost and are lured in by cheap prices (and many consumers probably are like that), then Hotel 'A' appears to be cheaper for the same product and gets the business. Hotel 'B' is then forced to follow suit with their own $20 resort fee, and the cycle continues.
It's similar to when one airline in a particular market decides to unbundle fares, and charge for baggage. Pretty soon, the others all follow along for flights operating to that same market. Then it's charging for seat selection. Then whatever else they can dream up. It's a race to the bottom. Anything to make the advertised charge appear lower than the next guy.
It's similar to when one airline in a particular market decides to unbundle fares, and charge for baggage. Pretty soon, the others all follow along for flights operating to that same market. Then it's charging for seat selection. Then whatever else they can dream up. It's a race to the bottom. Anything to make the advertised charge appear lower than the next guy.
Mar 12, 2019, 8:11 am
#25
Join Date: Feb 2001
Programs: IHG Diamond, HH Diamond, BW Diamond Select, Accor Silver, Marriott Gold
Posts: 4,227
Not legal in all jurisdictions. Separating out mandatory fees is illegal in Australia, so all users in Australia should be presented with full prices at all times including all taxes, even on search results. accorhotels.com illegally fails to do this correctly even for taxes, let alone for resort fees.
Sofitel Chicago
Mar 17, 2019, 3:12 am
#28
Join Date: Jul 2018
Location: Italy
Programs: Accor Gold, Marriott Titanium, IHG Diamond , Amex Platinum
Posts: 1,484
😃 unfortunately they mean “resident” at the hotel ...
it’s common use also in Italy. Each hotel, depending on region where is located, apply a resident tax (from 2 to 10 euro) per person per night.
Even if I understand the one in USA is something different.
I have booked several hotels in USA on next August and all of them apply a “resort” fee or something like that. Up to 25$ per night (saying it includes some services as beach towels, free internet etc). Quite strange for hotels/resort on the beach...where free internet is also included on the tier benefits ..
another special example: a Marriott in NYC apply 25$ daily “Destination fee” but it includes 35$ Daily credit at restaurants. While Sofitel NYC apply “only” 15.17$ resident fee (but without any credit or something similar)
it’s common use also in Italy. Each hotel, depending on region where is located, apply a resident tax (from 2 to 10 euro) per person per night.
Even if I understand the one in USA is something different.
I have booked several hotels in USA on next August and all of them apply a “resort” fee or something like that. Up to 25$ per night (saying it includes some services as beach towels, free internet etc). Quite strange for hotels/resort on the beach...where free internet is also included on the tier benefits ..
another special example: a Marriott in NYC apply 25$ daily “Destination fee” but it includes 35$ Daily credit at restaurants. While Sofitel NYC apply “only” 15.17$ resident fee (but without any credit or something similar)
Mar 17, 2019, 3:29 am
#29
Join Date: Mar 2000
Posts: 938
A tax - as mandated by local law - is different from a resident or resort fee which the hotel chooses to impose on its guests. A (small) local city tax or nightly fee seems to be more and more common in lots of places in Europe and I also recently had to pay it in Dubai and Malaysia.
