Tag Archives for resort fees.
Ethics norms notwithstanding I don’t have an issue with the government paying for rooms at Trump properties, even when they’re less convenient for doing business than other hotels and even when they’re more expensive. That’s the price of doing business with Trump and he was elected President under the U.S. system. If this bothers them it may influence their re-election vote.
I do, however, have a problem with resort fees.
The practice, which dates to April, has mostly ended – but one Hyatt hotel in Seattle was found still asking guests to reach down deep and give extra money to the property’s owners just this week.
After being called out, the hotel is no longer asking guests for donations, but it’s still charging a resort fee without delivering any amenities so that is kind of the same really.
Hotels can and should adjust pricing to generate the most revenue they can. That’s called the room rate, and hotels publish numerous different rates every day and vary their rates as needed. They can also incentivize use of on-property facilities, or raise and lower prices at those.
The worst approach would be for hotels to act in a deceptive manner, and undermine trust, when they’re struggling to fill even 40% of rooms and need that trust to get customers to travel let alone choose them for that travel. And raising pricing when occupancy is low, in the middle of a severe recession, seems like the height of stupidity.
In August the CEO of Caesars declared that resort fees could be the straw that breaks the camel’s back for Las Vegas lodging. Yet just two months later Caesars raised resort fees at Caesar’s Palace, Nobu and Rio.
Now with visitor arrivals to the U.S. under pressure from coronavirus – and the entire Chinese market large cut off from travel to Las Vegas – you’d expect prices to be reduced, not raised. Yet effective March 3 Caesars is raising resort fees at Harrah’s, Flamingo, Linq and Bally’s.
At the Sheraton Princess Kaiulani in Waikiki the $33 per night resort fee includes a keiki (child) gift upon request.
It turns out the gift is a book“Dinosaurs Divorce, a Guide for Changing Families.” That’s right, the resort fee includes a ‘surprise’ gift intended to let children know their parents are breaking up. Hawaii used to be a romantic destination, but resort fees at the Princess Kaiulani turn it into something far darker.
UNLV’s Professor Stephen Miller, who runs their Center for Business and Economic Research, finds that resort and parking fees are driving Southern California visitors from Las Vegas.
There are actually some very basic propositions here, each one of which is completely obvious.
First we had deceptive resort fees – part of the room rate is hidden, called a fee, and you don’t see it included in the total cost of a room when you’re comparing hotel rates on a website. Resort fees spread to hotels that aren’t resorts. In cities they started to call resort fees urban destination fees.
I thought we had reached peak absurdity with the spread in Las Vegas of ‘venue fees’.
When I covered this new type of fee back in September I asked, ‘Karl Marx said history repeats itself first as tragedy then as farce. If venue fees is hotels repeating the resort fee as tragedy, can the farce be far behind?” Apparently we’ve already reached farce.
Expedia is about the last travel company to do anything pro-consumer and yet with its muscle it could come late into the game and make a real difference.
MGM and Caesars seem to be Tweedle Dee and Tweedle Dumber. In August MGM announced resort fees over $50 a night at 4 hotels. The CEO of Caesars declared that resort fees could be the straw that breaks the camel’s back for Las Vegas lodging. So what is Caesars doing? Raising resort fees, natch.
The lead plaintiff has stayed at over 45 Marriott properties and contends resort fees are ‘drip pricing’. He claims not to have realized resort fees applied for some of his stays when he made his booking, because those fees are obscured (under “taxes and fees”).
What we can hope to gain from this and the state investigations of resort fees is a change in industry practice where mandatory charges are included in the room rate so that consumers can compare pricing.
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 »
