Hotels started off with ‘resort fees’ so that they could charge more than the room rate they initially displayed. Even if they disclosed the fee before confirming the reservation, it made their rate look cheaper when guests initially compared hotel choices. In some jurisdictions they would save on taxes by breaking out part of the room cost in something other than the rate. And percentage off discount deals wouldn’t apply to the resort fee, making them an effective price increase on many corporate agreements.
So it was no surprise to see the practice spread to city hotels that weren’t resorts. They just changed the name. “Destination fees” became common for hotels in cities that were ‘destinations’. But the practice required listing a set of ‘benefits’ that the consumer is getting for this mandatory extra charge. Marriott even requires this of all of their hotels.
The Grand Hyatt Washington DC has a bunch of absurd inclusions for their $20 fee, on top of a somewhat-reasonable $10 food and beverage credit (which just encourages you to spend more money than that in their restaurants – it’s a money maker for them). For instance they ‘include’,
- Two complimentary bottles of water daily (which all Hyatt elites get free anyway, even Discoverists, and unlike Marriott the chain doesn’t require a ‘replacement benefit’)
- Discounted car service to the airport or train station (presumably they’re even getting a commission on this from the provider)
- 10% off Old Town Trolley Tours Silver Pass, bike and segway tours, and discount on a two-hour private sedan tour of monuments and memorials (again, things they’re selling on behalf of a third party)
- Google Chromecast ready guest rooms (something that’s become a Hyatt standard offering anyway)
The list of destination fee benefits at this hotel seems like when Hyatt’s Motif in Seattle claimed their destination fee included among other things the “Iron and ironing board, In-room safe, Hairdryer and vanity mirror” along with the bath products in the bathroom and the desk in the room. But at least there’s a way to break even – or even come out ahead.
But what’s actually interesting is their offer of “healthy snacks in Lobby and Fitness Center.”
Thought you might enjoy these "healthy snacks" that were part of the destination fee "benefits" on a recent Hyatt stay @garyleff. Thankfully I was on points so didn't have to pay the $20/night fee. pic.twitter.com/FN60f4Ta7B
— Neil Enns (@DaneCreekPhoto) May 3, 2023
My first thought on seeing this: If you get all of those for the destination fee at least you could resell them?
Indeed you could take one or two every time you walk by, or even 10? I bet some people do. And as long as the hotel is restocking often enough there’s a nice opportunity for profit.
This may seem inappropriate in fact I’ve criticized airline passengers for filling up their bags with sodas and beers from airport lounges. Do the ethics here change when you’re literally being charged for unlimited snacks, and so you take unlimited snacks? And when you have no choice about being charged other than refusing to stay at the hotel?
This is an interesting thought exercise. In the end if enough people do it the hotel will adjust to ensure their max profits are restored, but it is interesting.
This reminds me of a conversation I had with someone a decade or so back who stayed at a luxury hotel every so often with his wife. The hotel had some partnership where they provided an absurdly premium bar of soap for each room. He would target a key night or weekend where the rate was in the low-$100s, they’d bring their own soap, and take the premium bar to sell on eBay for like $100 (I had to look it up myself to validate the story), resulting in a luxury hotel stay at an extremely reasonable cost.
If only Nature Valley bars were selling for $100 each! 🙂
I guess if the snacks ever were empty, you’d have a strong claim against paying that fee!
Who’s gonna buy them ?
I agree wtih @Beachfan that the time and trouble of reselling them won’t be worth it. But yes, if you’re stuck at such an unethical hotel, take what you can use. I just wish the whole practice of quoting fake prices was banned.
@ Gary — Seriously? I think I could find somethig better to do with my time, like sleep.
There has got to be a way to tell a hotel “NO!” on these absurd fees. I would love someone to print an article that is almost a surefire way to stop this “theft” by the hotels.
My response may well be to ask if the hotel has RV hookups and bypass everything. This as lso applies to ‘housekeeping by request only’.
Gary, as a fellow Jewish person, this is … this is not helpful. Please behave yourself, freier.
@ Win — Try telling the hotel you refuse to pay the fee. I have successfully done this many times.
Recently stayed at the Grand Hyatt in DC, thought the resort fee was one of the more skimpy ones I’ve seen (and that says something), but I did indeed stock up on > value than the resort fee of snacks from the gym in retribution.
I just stayed at this hotel to attend a FTU at which a 15 minute presentation was given by someone from Travelers United (https://www.travelersunited.org/). One of their main missions is to end resort fees (https://www.travelersunited.org/end-hotel-resort-fees/). I can confirm that the pictured snacks are indeed available without apparent limit in the lobby and in the fitness center (4 floors below ground likely related to DC’s https://en.wikipedia.org/wiki/Height_of_Buildings_Act_of_1910).
GHDC is under staffing even before pandemic. Sometimes housekeeping didn’t do a good job.
Metro entrance is right behind it through another building. No need a ride to station or airport.
Overall experience is not good, highly NOT recommended it.
What? Don’t they list free local phone calls, Color TV, or 1-page facsimile services as included?