l etoile

I just received a confirmation on an ALON award at the Hilton Waikoloa. On the confirmation it says the garden-view room rate is $490, on which I'll be charged the tax of $55.91. I checked the Hilton website and found room rates for that time period as low as $190. This seems a rip to charge award guests tax on a higher rate than is available. Anyone else had experience with this? Any luck negotiating a lower rate on which to base tax?

[This message has been edited by letiole (edited 07-19-1999).]

doc

Not specifically at Hilton, but I have at other hotels using awards paid from literally nothing to the type of "high tax" situation that you describe. Incidentally your quoted rate for room type (even at rack) does seem a little high to me, having stayed there recently. It's a fantastic property though. Save a few bucks for the Dolphin Encounter. Have a great trip.

Beckles

When I booked my stay at the HHV for this coming November I asked if I would have to pay tax (because he did quote me a tax rate), and was told that I would not (he just quoted me the tax rate out of habit, not because I had to pay it).

When I've stayed at Marriott and Hyatt on award stays I've certainly never paid tax.

doc

Marriott asked for taxes to be paid at the JW Marriott in Hong Kong! Think they did not in Austrailia at Surfers Paradise. It does seem as though some properties try to generate extra revenue from these taxes but I don't know the specific requirements of each state no less each country!

l etoile

I don't recall ever paying taxes on a hotel award either - even at this same property. HHonors book does say guest must pay room taxes on an award. I don't mind paying tax, it just seems it should be on lowest rate available. I'll give Hilton a call. It will have to wait three weeks though - off to vacation in Scandinavia.

In meantime, thanks for your replies. I look forward to reading this thread when I return.

UK Stages

i've redeemed free stays with hilton several times in the past few years. at the langham in london, i was always charged tax (VAT) which came to about USD $175 for a six night stay. certainly less than the rate for the room itself for one night, but not an inconsiderable sum for a "free" stay.

i was never charged tax at the kensington hilton, london, all three times i stayed there. i was charged tax at the hilton national olympia both times i stayed there on point savers; it came to about USD $70 for five nights. i was also charged tax on a three night stay at the rome cavalieri hilton last year.

in these cases, i assumed the tax was based on the rate hilton pays the hotel when they turn in the certificate, probably close to the operating cost for the room for the night. which makes me wonder if the tax will be higher now that these are "premium" hotels ...presumably hilton is doling out a higher payment to these hotels for award stays now.

why i was never charged tax on my stays at the kensington hilton, i couldn't tell you... curiously, it never bothered me. in fact, i think all the properties should adopt the same policy!

james

I wonder about this too. I have assumed that the references to tax in the rules relate primarily to airport taxes for flight awards. These are takeoff/landing/air passenger duties and not a sales tax or value added tax.

UKStages, I find it odd that you were charged UK Vat for goods with a nominal value of 0; you don't on FF (airline) awards so why hotels? However, HM Customs and Excise are cunning. When you buy tobacco/petrol/alcohol, the VAT is calculated on the price including excise duty. In other words you pay the cost, the tax, the VAT and the VAT on the tax!

Doc makes a fine point that this will vary greatly from country to country and then province to province. For personal reference, does anyone have any idea what the situation is in DC? I have a six-night Hilton reservation for which I am quoted a rate of 0, excluding tax of $48 per night. Ideally, I too would like to avoid paying this, or get it calcluated on a lower base rate. Any anecdotal evidence anyone?

UK Stages

james, unfortunately, i don't think they're calculating the value as "0," i think they're pegging it to the rate of reimbursement they get from hilton for the room for each night. (i would love them to calculate the value as zero.)

with frequent flyer awards, there's no actual money involved at all. but ...unless i'm very much mistaken, the hotel that redeems your hhonors reward certificate sends it to hilton for reimbursement.

so, depending on local laws or the opinions, experience (or perhaps desperation) of the accounting team at the individual hotels, a decision is made as to whether there is tax due on that reimbursement.

hilton's payment to the hotel is probably close to what the operating cost is for the room for the night ...in other words, what it costs to run the room -- whether it's occupied or not. i don't think it would ever come close to rack rate or even a leisure rate.

clearly, however, whether the room has no real monetary "value" or, say, 35 pounds a night is a matter of interpretation. and, unfortunately, two of the three UK hiltons that i've stayed in have interpreted it in favor of HM customs and excise.

(i wonder if there's a parallel here: when you use cents-off coupons in the supermarket, i think you're usually charged tax on the full total before the coupon savings.)

PremEx

For what it's worth, we just stayed 3 nights on a free PointStretcher award (PTS3) at the New Orleans Hilton Riverside. My confirmation slip listed the room as $284 per night with a tax of $34.24 per night. Upon check-out, the only taxes we were charged were a $1 City Tax, and $2 Occupancy Tax per night. As a VIP Gold we were upgraded to a Towers room and given our requested 4pm check-out time on our last day. Very pleased with how we were treated!

harold

I stayed at the Hilton Waikoloa on an award stay for 9 nights and the only thing I paid for at checkout was my bar tab. BTW, I would suggest skipping the Dolphin Encounter. Too expensive and you have to wear a lifejacket in knee-deep water. And if I'm going to pay that kind of money, I want Flipper pulling me around the pool...not just letting me pet him.

doc

Harold- On the Dolphin Encounter- I know what you mean about being pulled by flipper since it is not my thing either, but some people absolutely love it. The first thing my son said after it ended was "Can I do that again right now please?" It's especially good for young children and I think they get a bit of a price break too!

l etoile

I just talked with HHonors customer service and was told guests are not to be charged room tax on award stays. She says the confirmations print them out that way, but only taxes charged should be for incidentals.

WJP

Hey, at least you guys have/are staying at the Hilton Waikoloa. I have tried booking it 9 months in advance and even as a Diamond member was told there was no availability. go figure.

P.S. I have never paid taxes on award stays.

dhacker

WJP:

Please see this topic:

talk.flyertalk.com/forum/Forum57/HTML/000085.html

That is where RewardPlanner taught me the secret to booking award stays at Waikoloa. I leave Tuesday for six ALOA nights at Waikoloa followed by six ALON nights at Turtle Bay.

LordLuck

it's the 1st timme I'll redeem an award...the Hilton reservation agent told me that i might have to pay the local taxes...
can someone confirm that or know a way to avoid it ?!