Buzz
“What exactly is a resort fee?” my friend wondered as we drove away from our charming Palm Springs hotel. The bill we received was filled with a confusing array of taxes and extra charges. Too tired to go through each item, we paid without fully understanding what we were being charged for. You’ve probably faced the same dilemma, so let’s dive into what typically shows up on your hotel bill.
Hotels rake in massive profits thanks to additional fees (a staggering $2.7 billion last year). It seems they’ve borrowed a page from the airline industry’s playbook, as many now charge for even the simplest services, such as room preferences, local phone calls, and late checkout.
Some of these fees are easy to identify. If you see a Wi-Fi charge on your bill, you can reasonably assume it’s because you used the service. But then there are the more subtle charges that can leave you scratching your head.
Resort Charges
A resort fee is supposed to cover the resort’s costs, but uh, what does that actually mean? What if you’re not even staying at a resort? And even if you are—doesn’t your room rate already cover the resort?
Well, no. That’s exactly the point of the fee: it’s designed to make the room rate appear lower, with the actual cost tucked away as an additional charge.
A resort fee is an extra charge that covers amenities and services provided by the hotel, such as the business center, daily newspaper delivery, or gym access. The specifics depend on the hotel, but from the guest’s perspective, this is essentially a way to offer a lower room rate while still charging for the ‘extras’ separately.
The amount can vary quite a bit—some hotels charge a flat fee, while others charge a percentage of the room rate. On average, resort fees are about $21 a day. You might also encounter a “groundskeeping fee” for things like lawn care and landscaping maintenance.
According to the LA Times, “these resort fees, readers, are not mandated by law. They haven’t been imposed by any legitimate taxing authority. They’re just financial sleights of hand.”
In other words, the hotel has full control over them, so they’re negotiable.
If you’re part of a hotel’s loyalty program, you might be able to skip the resort fee. Some chains will waive it if you book with your rewards points. The Points Guy says that Hilton, Hyatt, Marriott, and Starwood hotels are among those that offer this perk at specific properties. You can also leverage your membership benefits, as they might already cover the resort fee. According to Nick Ewan of The Points Guy:
A resort fee often covers amenities you should already receive with your elite status, like free internet or complimentary bottled water. You shouldn’t be charged for perks that are part of your published benefits. A colleague of mine got a resort fee waived at the
Hilton Clearwater Beach
by pointing out that Diamond members shouldn’t be paying for internet access.
If you’re not part of a loyalty program, or the hotel doesn’t offer one, you still have options. At check-in, you can ask the front desk to waive or reduce the resort fee if it covers services you won’t use, such as the gym or pool. Of course, there’s a good chance they’ll refuse, but Frommer’s suggests it’s best to ask at check-in because it’s easier to remove fees before your bill is finalized.
A hotel industry insider from Frommer’s revealed that resort fees are often automatically added to your room rate by the hotel’s computer system, making it tough for front desk staff to reverse the charge. If this happens, ask to speak with a manager or another higher-up to arrange a refund, even if it’s deducted from your other expenses.
If some amenities aren’t functioning—let’s say the Wi-Fi is sluggish or the pool is frozen, who knows—you can also request a refund since it’s unfair to pay for services you can’t actually use.
Occupancy Tax
Occupancy tax, or transient occupancy tax, is more difficult to avoid because it’s a tax imposed by state (and sometimes local) governments. This tax is in addition to both state and local sales taxes. The amount you’re charged will depend on the location of the hotel.
As if that wasn’t enough, some cities and towns impose an extra tax called a bed tax, or a supplementary fee known as a hotel unit fee. For instance, in New York City, hotels must charge an additional hotel unit fee of $1.50 per day, according to the New York State Department of Taxation. The LA Times reports:
For a stay in a hotel, let’s say, in certain parts of Houston, you’d pay as much as 17%. In San Francisco, expect to pay 14%, plus an additional 1% to 1.5% (depending on the location) for tourism improvement districts. In Palm Springs, the rate could go as high as 1%, depending on the hotel.
All these taxes and fees really add up, but unfortunately, there’s not much you can do about them. The National Conference of State Legislatures provides a state-by-state list of lodging tax rates here.
Donation Fee
Yes, some hotels now automatically charge a “donation fee” to contribute to a charity of their choosing.
“I think hotels see this as an easy win—they take my money, donate it, and get a tax break,” says Suzanne Wolko of PhilaTravelGirl.com. “Is it worth arguing over a few bucks going to charity? It’s easy to have the donation fee removed, but what happens to your karma for just $1?”
Despite the karma dilemma, Suzanne mentions she’s had success negotiating the removal of the donation fee. Just ask for it to be taken off. And if you’re concerned about your karma, donate to a charity on your own!
Restocking Fee
Some hotels charge a “restocking fee” for the minibar if you decide to indulge. That $4.00 bag of Skittles you’re eyeing could end up costing even more depending on the fee. For example, if the restocking fee is $4.95, you just paid nearly ten dollars for candy.
If you want to enjoy the minibar without paying that extra charge, it’s worth checking with the front desk first. Ask if there’s a restocking fee, and if so, see if they’ll waive it. As always, it’s easier to negotiate these fees before you check out and get your final bill. And if they won’t budge on the fee, well, it’s your call how badly you want to taste the rainbow.
Service Charge
One of the more frustrating charges, the service charge is intended for staff gratuity. However, hotels can be frustratingly vague about where that money goes and what it covers. When one hotel guest questioned why his service charge was a hefty 22%, this is how the hotel responded on TripAdvisor:
Our service charge is 22%, which covers a 6% service charge, a 2% taxable service charge, and a 14% gratuity. The 22% covers everything except the state tax—there is no additional 15% gratuity on top of the 22% service charge.
But what exactly does “everything” mean? And what about the 6% “service charge” that’s part of the service charge? It’s all quite confusing, and certainly something you can bring up with a front desk clerk if you need clarification.
While this particular service charge seems unusually high (the New York Times reports that 10% is usually considered high), it can really add up depending on how long you’re staying. If you’re unaware of it and tipping the staff anyway, you could end up paying even more.
Fees for Other Amenities
Apart from these sneaky, confusing charges, it’s also worth mentioning some of the more straightforward fees that hotels have begun imposing. Watch out for charges related to specific amenities, like:
Local phone calls
Parking
Extra towels
Wi-Fi
Late checkout
Mailing or receiving packages
Room selection
Gym access fee
In-room safe
And, of course, there are cancellation fees. These have been around for a while, but while a 24-hour notice was once the standard, some hotels now impose a charge if you cancel within 48 or 72 hours before your stay.
As always, you can try to get these fees waived by asking about them when you book your room. Even if the hotel says no, at least you’ll be prepared. And when requesting extras during your stay, like more towels or a late checkout, don’t forget to ask if there’s an additional charge for your special request.
