CDTraveler

I get annoyed with these fees because of the deliberate effort made to hide the final cost. Prior to a recent change on Expedia, which is where I do much of my hotel research, Resort Fees were hidden at the bottom of the page, in the fine print, under "Fees you may be asked to pay at the hotel". It seems they improved pricing display to the point where the mandatory resort fees are now listed directly underneath room rates, making it easier to determine the final cost.

writerguyfl

What puzzles me is why local government isn't stopping the resort fee nonsense. Aside from the consumer, the local taxing authority is the other group losing out. Anyone that travels even a small bit knows that hotel taxes are often much higher than sales taxes.

Everywhere I've been, those resort fees are taxed at the lower sales tax rate and not the higher hotel tax rate. When hotels shift part of their total cost into a resort fee, that means the local government gets less revenue.

I picked a large convention hotel in Orlando and ran the numbers. It's a 2,008 room hotel with a $30 resort fee. The sales tax is 6.5% and the hotel tax is 12.5%. Assuming a conservative 80% occupancy, the lost revenue for the local government due to the lower tax rate is $1,055,405.

That's just one property (although it is largest hotel in Orlando). Still, there are almost a dozen 500+ room hotels that charge resort fees $28 and $45/night. That's got to be tens of millions of dollars in lost revenue for the local taxing authority.

(I recognize the fact that eliminating resort fees might increase the overall rate paid by the guest. But, at least it would fix the annoyance of thinking you found a good rate only to discover that $45 resort fee added on.)

COSPILOT

Your post made me think about why airlines distinguish things under different fees, as I think you are correct, the tax rate for them changes. When I have more time I'll look into this. If this is to avoid higher local taxes then I'm all for it, even if it makes life more difficult for those that like to use OTA's. If it's only OTA's that create the problem, then take it up with them. Companies do everything possible to lower taxes paid, and that is how it should be.

Error 601

The one that doesn't is operated by an Australian hotel chain.

pinniped

This is the sole purpose of a "resort fee", no matter what amenities are listed. The only intent is to deceive the customer, and it is only done because nobody has made the practice illegal and likely won't.

There's actually no real need for the hotel to bother listing amenities. That's just a little bit of halfhearted marketing, I guess.

It's not much different than an airline fuel surcharge, at least until Boeing or Airbus invent an aircraft that can optionally operate with or without fuel. The only difference there is that we *do* have sensible regulation that requires airlines to show a correct revenue fare (including their junk fees), limiting the deception to award redemptions, travel agents, and their corporate clients.

CDTraveler

No, companies should not avoid taxes by fraudulently misrepresenting their income, which is what calling a mandatory "fee" is when it is really part of the room rate.

COSPILOT

Any financially responsible company minimizes tax liability, just as they make every attempt to minimize all expenses. If some of you feel so strongly, I would suggest taking it up with legislation.

pinniped

Donald, is that you?

Agreed that legislation is desperately needed. People cannot be trusted to behave fairly and ethically, least of all corporations who are increasingly building entire business plans based on deception and fraud.

Gadot

As a hotel owner, when did they become free?

Gadot

why is coffee and water and internet part of the room rate. They are extras that we give you over the room rate. Just because in the past we have given them away along with newspapers does not mean that we will be bound to do it in the future. The room rate is the room and cost thereof (cleaning etc). Any extras are extras and you should be glad that they are itemized for you

pinniped

Nobody questions the hotel owner's right to try to charge the people who use these things. The market can then dictate whether people are willing to pay for them or not.

Sneaking a bogus fee in on everyone, not part of the room rate, should be 100% illegal.

Gadot

as cospilot said, if you look on the hotel's web site, they are not hidden. because your third party agents do is not the hotel's fault
a hotel owner

pinniped

So it should be real simple to just add the fee to the base room rate, right? I mean, you're saying it's the same difference...

You and I both know the entire purpose of the fee is deception. That's literally why it was invented. Even within the hotel's website: New York Hiltons that charge bogus fees are listed alongside ones that do not. The ones that do not suffer because the bogus-fee hotels look artificially cheap in the first page of search results.

CDTraveler

Traditionally the coffee and the bottled water have been put in the room without consultation with the guest to whether they were wanted. I don't want them, so why should I pay a "resort fee" for them? I carry my own phone, why should I have to pay because years ago the hotel put one in the room that I will not need or use? Same with wifi, I can get by just fine without it. So you can argue whether or not they were ever "free" all you like, but when I see BS like bottled water being a "resort" amenity I guarantee you I'm staying at a different hotel because a) I have no respect for a business that uses such bogus descriptions of their charges and b) I don't want to pay fees for items I neither need nor want.

For a genuine amenity, like a gym, if I wanted to use it, I'd be willing to pay a per use fee. I see that as an additional service provided by the hotel, not inherently a part of the "provide me with a room with a bed and bathroom for a price" contract.

CDTraveler

Wrong, incorrect and utter nonsense.

I went to the website of the hotel whose "resort fee" description inspired this thread to see if they disclose the fee, how much it is and what it is for. I got all the to the page to enter payment data without the hotel site disclosing what fees they charge and what the fees cover. At the place where you commit to paying them money, this what is shown as the price: