Hyatt Hotel Charges Every Guest For Damage They Haven’t Even Caused Yet

It used to be just resort fees that hotels added onto unsuspecting guests’ bills. Then city hotels decided they were missing out on the action and began charging ‘destination fees’ even though they couldn’t promise beach chairs, non-motorized water sports, yoga classes by the pool or whatever other litany of supposed benefits they could say they were charging that somehow weren’t included in the room rate.

Recently, though, hotels have really ramped up their creativity with electricity fees, fees to use the bathroom mirror, a window replacement fee and even a 7.5% surcharge to cover property taxes.

Against this backdrop with all the fees that hotels you’d think there’s nothing left to unbundle. However Hyatt’s Destination Residences Mauna Lani Point resort in Waimea has come up with a creative new fee I haven’t seen before.

In a move sure to impress Monsieur Thénardier himself, the hotel actually charges guests for damage they haven’t even done to the room yet through a mandatory $79 damage waiver fee on each booking.

A non-refundable Damage Waiver fee of $79, plus tax if applicable, will be applied to the total cost of your reservation. This will cover the costs of any accidental damage of the vacation rental and it’s contents up to $1,500.

This. Is. Insane. Everyone gets charged $79 in case they break stuff. But the fee only covers damage that is self-reported, not that the property finds on their own.

If this were good value, it would be optional and something guests could choose to pay for. If this were necessary for the property, they could charge a per-night fee and include it in the room rate. Instead it’s mandatory precisely because customers wouldn’t choose to pay it, and an add-on to make the room rate look cheaper than it is.

Of course, hotels play stupid games, they’ll win stupid prizes. The property is basically asking guests to play ‘smash the TV’ before leaving since they’re paying a fee to cover that anyway. At a minimum it might lead guests to take less care, since they’re already being charged for damage.

I reached out to Hyatt last week to find out whether this fee should be waived for Globalists, since they aren’t supposed to be charged resort or destination fees on revenue stays and that’s really what this is – a “value add benefit in exchange for a fixed add-on fee.” And if it’s waived for Globalists on revenue stays, it should be waived for all guests on award stays. We’ll see what they say.

(HT: The Gate)

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Hmmm, if it includes theft one could steal the TV and coffee maker, etc – and get off with only paying $79.

  2. So does this mean we can just take towels, robes, artwork and other stuff up to the 79.00 value ?

  3. What are Globalists?? I travel for work and totally resent having to pay a resort fee when most of the time I don’t even see the pool! No hotel should be allowed to charge for breakages that didn’t happen.

  4. Maybe the hotel could use that windfall funding to enroll in some basic grammar and spelling classes…to learn the difference between its and it’s. You know, like a moderately educated 4th grader would learn and understand.

  5. If they tried that with me I may or may not have a $1,000 accident that I would dutifully self-report.

  6. Lee it covers damage up to $1,500 so I’m researching the value of the hotel TV because “something” might happen to it. Hey, I’m getting my moneys worth. The hotel WILL be losing this game…..

  7. I kind of love being able to destroy $1500 of stuff as a room perk — stock the room with a bunch of mismatched thrift store plates, let guests go wild, and bill it to insurance.

  8. I’m actually planning now to stay at a Hyatt that charges this fee so I can break my money’s worth. So excited.

  9. Live like a rock star. Trash the room for only $79!

    I find this story not credible. Could any hotel executive really be this stupid?

  10. For all thinking of causing damage. This is for “accidental” damage. If they have any reason to think damage was caused intentionally they can file criminal charges for destruction of private property and the damage waiver doesn’t cover that. They could also file a civil suit as a deterrent to anyone else that may wanted to intentionally cause damage.

    Agree the fee is odd although this isn’t a hotel but a time share condo under the Hyatt name and similar fees (or requirements to purchase an insurance policy) and pretty standard w many VRBO and similar such rentals. Compare this to those properties and not standard hotels

  11. Isn’t the real insult that the damage has to be self reported? Even with this waiver, they can still ding you after your stay for the stain you never noticed. That’s not how VRBO or rental car waivers work.

  12. It isn’t just that location. It appears to be many of the Hyatt Destination Residence locations.

    Also, it isn’t just $79. It looks like they charge, I dunno, tax on it, so that it comes out to be $93.19. I mean… wtf.

  13. @AC you bring up a point, but the problem is they have to PROVE that it wasn’t an accident. The TV just tipped over, or I just accidently spilled my drink on the TV. So while you bring up a good point, the problem is proving that it wasn’t an accident. After all, we call them car “accidents”, but in reality every accident is preventable, and thus a collision.

  14. “I reached out to Hyatt last week to find out whether this fee should be waived for Globalists, . . . [a]nd if it’s waived for Globalists on revenue stays, it should be waived for all guests on award stays. We’ll see what they say.”

    To those who have previously expressed an intolerance to some of Gary’s commentary, I have suggested that Gary’s commentary is advocacy. Well, here is yet another matter on which Gary is advocating for us. Please save your flaming darts for others. Thanks.

  15. Couldn’t this stupid “fee” be considered as an insurance product? And if so, aren’t there state regulations that apply to various types of insurance?

  16. A high end property, one that is actually high end and not simply self-proclaimed as such, does not engage in these pricing games because their clientele are not so price sensitive. A true high end property will charge the room rate it needs to charge, and that’s it.

    Hotels with these garbage fees attract garbage guests and I wouldn’t stay there even if my personal folio has these fees waived.

  17. You might want to change ‘non-motorized water sports’ to water craft or accessories. If someone was really doing non-motorized water sports, the damage fee might not be such a bad idea.

Comments are closed.