Hilton and Hyatt don’t charge resort fees when you redeem points. Your points cover the stay. Marriott is different. They began having members pay resort fees when the Bonvoy program launched. That was a sneaky trick as part of the chain’s efforts to simultaneously appear to be providing strong value to the customer, while also reducing the cost of the program to hotel owners.
- Marriott can charge fewer points (although they often charge double the points compared to before the pandemic for their best properties) because points aren’t covering the full cost of the hotel stay.
- Hotels can take less compensation for a ‘free night’ award from Marriott, because they’re making it up out of the guest’s pocket.
The thing to understand though is that even when you aren’t paying the resort fee, you’re still entitled to its benefits.
- Most resort fees don’t have ‘real’ benefits, they have lists of things you could theoretically get – discounts on services, classes you don’t want that take place at times you won’t be at the hotel. Then there are prices attached to those things. That makes it sound like the resort fee is a ‘deal’. But if it were a deal, it could be voluntary and you’d pay!
- They’re really fraud, a way to disguise the true price of a room, and drip pricing that lets them raise the cost after you’ve clicked through to a property. It doesn’t just disguise the cost from the consumer, but also anyone receiving a commission as well.
Still, there are sometimes benefits you might want. For instance, there could be a $15 food and beverage credit that’s really designed to get you to stay and spend on property (the hotel figures your bill will be much higher, this is really just a discount off a high margin item).
One reader relayed his experience at the Hyatt Regency Seattle. He was redeeming points, and was told at check-in that he was
[N]ot eligible for the $15 F&B credit that comes with the destination fee because I’m on an award stay and didn’t pay it. [They s]aid you only get it if you are Globalist, and the free water and Wi-Fi is because I’m Explorist [and not because it’s included in the destination fee].
He reached out to Hyatt’s social team – I find them very responsive when you direct message them on twitter – and they called the hotel. The hotel then followed up with the guest to apologize, honor the food and beverage credit, but of course said “it was a one time gesture.” They weren’t changing their practice of denying the destination fee benefits on award stays.
In fact, the hotel is getting paid and the guest is entitled to the same benefits as anyone else staying on property.
- On an award stay, the compensation from World of Hyatt to the hotel is meant to include all fees. Now, the amount the hotel gets is a function of their average room rate (not including resort fee) and their occupancy. But the hotel gets paid for the stay, and the guest is supposed to receive all the benefits available to a paying customer.
- Globalist (and Courtesy Card) members don’t pay resort fees on paid stays, either. Hyatt pays the hotel 50% of the resort fee to cover it. This is contractual, and it makes sense for Hyatt to get a volume discount in any case.
Resort fees usually include collections of useless items, or small discounts or credits that the hotel benefits from when you spend more than the allotted amount. In the case of a $15 food and beverage credit, much of the time the hotel comes out ahead if you use it. Denying it to the guest is a mistake. But it’s also a scam layered on top of the resort/destination fee scam itself, because the hotel is getting compensated for it – and has to provide the same benefits to redemption guests as cash ones.
Did you or the original guest follow up with Hyatt to push this hotel to not consider a “one time courtesy “ but rather to follow the program rules?
Gary,
1) Can you confirm that a hotel is compensated for a “resort” or “destination” fee when a customer stays at a hotel using points? Typically, reimbursement on hotels is based on some kind of formula that compensates the hotel based on the average daily rate – and average daily rates technically exclude resort/destination fees. Your reader claims the hotel is being compensated for the resort fee when I am not sure if that is the case (and it may vary across the hotel programs).
2) If a resort fee actually provides real benefits – like a drink credit – I don’t really have a problem with guests that don’t pay the fee actually not getting the benefit.
@Anthony – see what I wrote, that reimbursement for a redemption stay is meant to cover the full cost of that stay, and that on a paid stay for globalists incremental payment is provided by the program. Redemption guests are full guests, period.
This seems to be common practice at every Hyatt property stayed in this year. If the resort fee included a onsite F&B credit I was told I was not eligible to receive it because as a Globalist I didn’t pay the resort fee. Sometimes I question it and sometimes I don’t, but regardless it is nonsensical to penalize your highest tier elites in this way.
Same happened to me this year @ Hyatt Union Sq NYC.
Speaking of “Resort Fees,” how can a hotel in a city get away with charging a “resort fee?” Why don’t they just build it into the room charge?
Seriously – pick your battles. If a resort fee includes a credit and you’re not paying it – I don’t have an issue with not getting the credit unless it clearly stated somewhere you will. I’d much prefer that that the Bonvoy system of having to pay the fee and getting meaningless “perks”. Not penalizing elites – if you think elites should have a benefit – complain that it should be part of those benefits.
Gary – I am not sure I understand when you say reimbursement is “meant to cover the full cost of that stay.” The word “meant” may be doing a lot of work there. Lets say two Hyatt members redeem points at the same hotel, same room, same points outlay – one is an Explorist and one is a Globalist. Is Hyatt in fact paying the hotel extra reimbursement for the Globalist’s stay as that Globalist is getting free breakfast and free resort fee benefits? If they are, then I get your (and the reader’s reasoning).
Government stopped caring about resort/destination/et al fees when it was firmly established that the fees are subject to all the room, hotel, state and local taxes.
It’s all about the revenue.
Hi gary
I knew about Hyatt not charging resort fee for points days but I have always been charged a resort fee at Hilton on points stays can you confirm Hilton also does not charge and where can I find this to prove it to the hotel thanks, Rich
I agree that ALL resort fees are a scam. Hotels and the like must be forced to include all fees, including taxes (broken out, of course!) in the published room rate. That way the consumer can measure “apples to apples” when making their purchase. I hate it when I go to a resort and they charge a “parking fee” for parking my own car and then suggest that I must also pay for the valet parking that I don’t use AND if I did use the valet…I expected to tip. Bull***t!
Oh, and Rich…I checked the Hilton web site and here’s the quote: “No resort fees on Reward Stays
No resort fees on Reward stays booked using all Points, or for promotional free night stays (e.g., issued by credit card partners, etc.).”
30 years ago the Hilton Waikoloa had an optional resort fee that I paid for on one stay. Unlimited free kayak rental plus other benefits that I forget.
Tbh, it’s fair to deny the $15 F and B credit because it’s a hard cost.
What’s not fair is allowing hotels to charge a mandatory $25 fee for a $15 benefit. The other supposed benefits are advertised as features of the hotel and should therefore be included in the room rate
Maybe I’m doing it wrong, I’ve always focused both status and points with Hilton, who seems to be more hotel-centric than resort-centric. For sure they hit the sweet spot for business travel with their Hampton Inn and Garden Inn brands (although once or twice I stayed at a Garden Inn that was so dated it felt like walking into a Marriott Courtyard from the 1980’s that had never been freshened). In any event, hotel properties don’t seem to scam reward guests as much as the resort properties do, and for that I’m grateful !
Stayed there as Globalist just over a week ago and was specifically told about the $15 F&B credit and to use that day (one night stay). Used it and credited off our folio.
Just one of a list of reasons that hotel, which was fabulous when it opened, is going downhill. Count the continued lack of service in the Regency Club as another one, despite the fact that the hotel’s rates and traffic have returned. And worry not, since $15 will barely buy you anything in the hotel’s expensive “market” and understaffed restaurant.
The argument that some commenters are making that it’s reasonable not to include the benefits of the resort fee if the fee is waived is congruent to arguing that since parking fees are waived for Globalist award stays, one shouldn’t be allowed to park a car. Waiving a fee does not preclude you from receiving the benefits of the fee, it simply provides those benefits on a complimentary basis.
I almost feel bad reading this. Acknowledging that ACCOR /.Live Limitless doesn’t have that large a reach/ market cap in the US this article has illisted genuine sorrow mixed with rage.
As a Gold with them of several years ( mid level, 2 above+ 1 invite only tiers). I’ve had an ( goes to check quick) … ..an 87.5% next level room/.suite upgrade success ratio off of 109 stays over 5 years. Roughly 70 % of those were booked via a 3rd party such as BA Holidays. Their rules mirror most programmes where technically only direct bookings qualify for stated status perks. As that be. A simple card flash, app display invariably results in all perks being offered. Occasionally a polite ask regarding wether I can use my perks gets the same result. Rarely have I been refused.
That’s the upgrade. Free breakfast. Club access if present. Welcome drink and/or gift ( F&B credit usually).
If it’s a points booking. It’s never been a factor & perks are proactively offered.
UK, Europe, Asia and Australasia redemptions and even twice in the States.
I feel for y’all getting shafted so often and in so many ways. Hopefully that resort feels legislation of yours goes through sooner rather than later. As a Brit even when visiting the US it’s not a factor. By law we require the full price to be shown as the headline rate inclusive of everything except an environmental levy set by a government or regional legislative body and/or city tax charges. If a resort feels or anything else appears later in the booking process it’s not legally compliant when soliciting UK residents business. Sometimes I reach out to the property politely highlighting X & inviting an adjusted offer. Mostly walk away from scam fee’s and if you’re a certain new York location who tries to apply it at checkout & refuses.to remove it then you find that the agreed rate without scam fee’s is much more than nothing when the entire stay gets a charge back