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Many hotels have started charging resort/amenity fees for guests as well. Traditionally commissions were only calculated on base room rate, so making up a manda
by cosmie 6y ago
Many hotels have started charging resort/amenity fees for guests as well. Traditionally commissions were only calculated on base room rate, so making up a mandatory fee and shifting some of the rate over acted as a super handy "tax dodge", artificially lowering the commission owed to all their booking partners. The same applies to pre-negotiated corporate and event-block rates – they can win business with an artificially low price, then pad the actual margin of stays via an ambiguously defined and undisclosed but "industry standard" destination/resort/amenity/urban fee.
Between that too-easy-to-pass-up profit optimization, and the marketing benefits of deceptively low list price, it's become pretty pervasive. And isn't limited to actual resorts – I've had bog-standard business hotels in the suburbs tack on a $30/night non-waivable "destination fee". Luckily it got to a ridiculous level recently, triggering a lot of media backlash and class action lawsuits last year[1][2].
It's also losing effectiveness, as things like online booking websites start displaying all-inclusive pricing and renegotiate their commission structures to be inclusive of mandatory, non-governmental fees. Between that, all the negative sentiment, the spate of lawsuits and legislation its triggered, the fees are hopefully on their way out.
[1] http://killresortfees.com/ http://killresortfees.com/
[2] https://www.cnbc.com/2020/02/07/resort-fees-being-addressed-at-the-federal-level-helping-travelers.html https://www.cnbc.com/2020/02/07/resort-fees-being-addressed-...