Dec 3, 2016, 9:46 am
Last edit by: yosithezet
Per Starwood Lurker II's research in April 2009:
1. If a SPG member has been offered a complimentary upgrade to a room of a higher category, is the member charged a luxury tax based on the Rack rate of the original room booked or the upgraded room?
Luxury tax is applicable to the Rack rate of the upgraded room for properties who are applying such taxes. I have verified that this is a government rule. Therefore do verify before checking in if you have been upgraded. Currently, properties in New Delhi, Hyderabad, Chennai and Ahmadabad are applying the luxury taxes to all their staying guests.
2. Are free night awards(in which taxes are already included) exempted from the luxury tax?
Yes.
3. Is this going to be forever?
This involves a couple of answers regarding the state governments so I shall leave this to any members who are residents in India.
1. If a SPG member has been offered a complimentary upgrade to a room of a higher category, is the member charged a luxury tax based on the Rack rate of the original room booked or the upgraded room?
Luxury tax is applicable to the Rack rate of the upgraded room for properties who are applying such taxes. I have verified that this is a government rule. Therefore do verify before checking in if you have been upgraded. Currently, properties in New Delhi, Hyderabad, Chennai and Ahmadabad are applying the luxury taxes to all their staying guests.
2. Are free night awards(in which taxes are already included) exempted from the luxury tax?
Yes.
3. Is this going to be forever?
This involves a couple of answers regarding the state governments so I shall leave this to any members who are residents in India.
FAQ: Award stays charged taxes on RACK rate in India? [Merged thread]
Apr 21, 2009, 11:39 am
#16
Suspended
Join Date: Oct 2003
Location: New York, NY
Programs: Delta - Gold; Starwood - Platinum; HHonors - Diamond & Avis Preferred
Posts: 10,869
Hello,
Recently stayed at the Sheraton New Delhi on a cash and points reservation and was assessed a 12.5% tax on a ridiculously high rack rate instead of the cash and points rate of $60 USD. I was upgraded to an executive room, but to make it worse was charged the tax on the rack of this upgraded room and not my original deluxe room! The tax ended up being almost equivalent to the cost of the cash and points rate!
When you make a reservation online for this property, there is no mention that tax is on the rack rate. It is mentioned in the email confirmation that you get, which may not be helpful if you book last minute and it's too late to cancel.
I'm SPG Plat and have never seen this before - does anyone else have similar experiences?
Recently stayed at the Sheraton New Delhi on a cash and points reservation and was assessed a 12.5% tax on a ridiculously high rack rate instead of the cash and points rate of $60 USD. I was upgraded to an executive room, but to make it worse was charged the tax on the rack of this upgraded room and not my original deluxe room! The tax ended up being almost equivalent to the cost of the cash and points rate!
When you make a reservation online for this property, there is no mention that tax is on the rack rate. It is mentioned in the email confirmation that you get, which may not be helpful if you book last minute and it's too late to cancel.
I'm SPG Plat and have never seen this before - does anyone else have similar experiences?
Apr 21, 2009, 11:58 am
#17
Join Date: Oct 2004
Posts: 1,530
It is (or at one time, was) a local law that the hotel will impose a tax on the rack rate for a free room. This happened to me at the Hyatt Regency Delhi so I guess that the charge is legit.
Apr 21, 2009, 12:03 pm
#18
Join Date: Apr 2009
Posts: 2
That's fine. I was more bothered by the lack of disclosure when making the booking online. It's a significant piece of information.
Apr 21, 2009, 2:18 pm
#19
Join Date: Jan 2009
Location: L.A.
Programs: USAIR gold, HH diamond, SPG gold
Posts: 270
Agree it should have been clear in the terms & conditions. Whenever I have booked C&P, they say whether tax is included or will be charged separately. But my understanding was that it was on the rate paid, not the rack rate for the room.
Apr 21, 2009, 3:58 pm
#20
Original Poster
Join Date: May 2005
Posts: 2,894
On a regular full cash reservation, it does mention that taxes will be levied on the full rack rate of the room. Now, it does not mention levying tax on the full rate of an upgraded room and this is somewhat bothersome. Alas, it's the local hotel rules for the 5 star hotels (there are some places in India that does not have this law - e.g. Agra, Jaipur, etc.) and I don't know what SPG can do about this.
I'd be very cautious when booking cash-and-points reservations in India due to this type of taxation practice. However, there have been reports that on full awards, these properties don't levy taxes... since the rate paid is "0."
I'd be very cautious when booking cash-and-points reservations in India due to this type of taxation practice. However, there have been reports that on full awards, these properties don't levy taxes... since the rate paid is "0."
Apr 21, 2009, 7:57 pm
#21
Company Representative - Starwood
Join Date: Apr 2005
Location: Singapore
Programs: SPG
Posts: 4,002
Dearest Neil_Morristown,
Greetings.
Unfortunately, due to the local governing laws, most properties in India(not just those under Starwood) have to apply taxes for hotels stays based on the Rack rate of the room, and that includes C&P stays.
This has been discussed much earlier as well.
However, I would like to obtain more details of this particular C&P reservation from you so that I can investigate further on your concerns, including taxes on the upgraded room.
Hence, do drop me a PM and let me conduct a simple detective work.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
Greetings.
Unfortunately, due to the local governing laws, most properties in India(not just those under Starwood) have to apply taxes for hotels stays based on the Rack rate of the room, and that includes C&P stays.
This has been discussed much earlier as well.
However, I would like to obtain more details of this particular C&P reservation from you so that I can investigate further on your concerns, including taxes on the upgraded room.
Hence, do drop me a PM and let me conduct a simple detective work.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
Apr 21, 2009, 9:07 pm
#22
Company Representative - Starwood
Join Date: Apr 2005
Location: Singapore
Programs: SPG
Posts: 4,002
Dearest Neil_Morristown,
I believe you have called and emailed in to us with your enquiry so I shall leave it to my colleagues to provide you the appropriate answers.
Let me know if you require any further assistance.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
I believe you have called and emailed in to us with your enquiry so I shall leave it to my colleagues to provide you the appropriate answers.
Let me know if you require any further assistance.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
Apr 21, 2009, 9:18 pm
#23
Join Date: Jul 2007
Posts: 477
I will be staying at the Westin Sonha-Gurgaon resort property this coming weekend. As a platinum what benefits can I expect - upgrade to suite, do they have a lounge that is open on weekends, breakfast coupons etc?
Also, since it is an award stay ($0) do you still have to pay taxes?
Also, since it is an award stay ($0) do you still have to pay taxes?
Apr 21, 2009, 9:45 pm
#24
Company Representative - Starwood
Join Date: Apr 2005
Location: Singapore
Programs: SPG
Posts: 4,002
I will be staying at the Westin Sonha-Gurgaon resort property this coming weekend. As a platinum what benefits can I expect - upgrade to suite, do they have a lounge that is open on weekends, breakfast coupons etc?
Also, since it is an award stay ($0) do you still have to pay taxes?
Also, since it is an award stay ($0) do you still have to pay taxes?
My understanding so far is that luxury taxes are applicable for free night awards as well. But do let me confirm on this.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
Apr 21, 2009, 10:15 pm
#25
Moderator, El Al and Marriott Bonvoy, FlyerTalk Evangelist
Join Date: Feb 2005
Location: SIN
Programs: SQ*G, Mar LTT, Hyatt Glb, AA LTG, LY, HH, IC, BA, DL, UA SLV
Posts: 12,018
I will be staying at the Westin Sonha-Gurgaon resort property this coming weekend. As a platinum what benefits can I expect - upgrade to suite, do they have a lounge that is open on weekends, breakfast coupons etc?
Also, since it is an award stay ($0) do you still have to pay taxes?
Also, since it is an award stay ($0) do you still have to pay taxes?
Dearest svasandani,
My understanding so far is that luxury taxes are applicable for free night awards as well. But do let me confirm on this.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
My understanding so far is that luxury taxes are applicable for free night awards as well. But do let me confirm on this.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
Apr 21, 2009, 11:01 pm
#26
Company Representative - Starwood
Join Date: Apr 2005
Location: Singapore
Programs: SPG
Posts: 4,002
At one point the Hyatt Regency Delhi was charging the tax on award stays. Eventually they reversed this policy. An award stay should be an award stay and we shouldn't have to pay additional money on top. I'm anxiously awaiting the results of your investigation though.
Will definitely keep everyone posted.
Btw, I was previously given the same answer you have written but I am very unsure on the validity of it and so it is better for me to verify again.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
Apr 21, 2009, 11:06 pm
#27
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 11,377
"“Free Night Awards” are each valid for one free night, single and/or double standard room only occupancy, at Participating Properties, and include the cost of your hotel room and room tax/service charge."
https://www.starwoodhotels.com/prefe..._terms.html#12
Apr 21, 2009, 11:09 pm
#28
Company Representative - Starwood
Join Date: Apr 2005
Location: Singapore
Programs: SPG
Posts: 4,002
SPG terms are very clear that taxes for Preferred nights are not the responsibility of the member.
"“Free Night Awards” are each valid for one free night, single and/or double standard room only occupancy, at Participating Properties, and include the cost of your hotel room and room tax/service charge."
https://www.starwoodhotels.com/prefe..._terms.html#12
"“Free Night Awards” are each valid for one free night, single and/or double standard room only occupancy, at Participating Properties, and include the cost of your hotel room and room tax/service charge."
https://www.starwoodhotels.com/prefe..._terms.html#12
But not necessary for properties in India and I do not want to make any claim without any certainty.
Do let me find out before replying.
[email protected]
Thyetus Lee | Online Forum Coordinator(AP)
Starwood Customer Contact Centre (AP) Pte Ltd
Apr 21, 2009, 11:14 pm
#29
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 11,377
It is good for you to check SPG practices, but I would interpret any taxes being due from the member on any award reservation as SPG violating the terms they wrote.
Apr 21, 2009, 11:31 pm
#30
Join Date: Oct 2001
Location: San Francisco
Programs: UA 1k, SPG/Marriott Plat, IHG Plat
Posts: 1,020
