Hotels are worse than airlines when it comes to add-on fees. That seems like it might be a stretch, considering that Frontier Airlines charges you extra for checking in at the check-in desk. But I’m pretty sure I’ve come across a fee even more egregious than that.
Oh, hotels already have been working up a good fee game. There’s the economic adjustment fee, the Sleapytime tea fee, electricity fee, the fee for use of the bathroom mirror and in-room TV fee. There’s the fee to cover the hotel owner’s payments financing their property taxes. And then there’s the fee for nothing whatsoever.
The Holiday Inn Express & Suites in Newton, Kansas has truly jumped the fee shark, showing just how creative a no-amenity hotel can be in assessing fees, and demonstrating just how much hotel chains have let owners run amok over their brands.
This hotel charges an “admin & software processing fee.” When it’s not really even their software that’s processing the booking, it’s the chain’s software, yet IHG allows this to be published on their website!
How often do you see “$2 fees per night” listed? IHG’s system, it turns out rounds up here. It’s the $1.65 “Admin and Software Processing Fee.” WTAF?
In making up fees like this, these Picassos of bad ideas are clearly testing the notion that their guests are regularly outsmarted by cheese. Someone didn’t just make it up, they uploaded it into the reservation system. And they charge guests this with a straight face, day in and day out.
This is worse than any ‘buy here, pay here’ used car lot. And I say that coming from a family on my father’s side that was in the car business, both new and carry your own paper kind of used cars.
For the marginally financeable customers we had Cosmopolitan Finance which charged 38.12% interest plus a loan admin fee calculated as “1/12th of 1% of the daily rate on the 25th day of the 2nd month of the quarter preceding the quarter in which the loan was originated.” At this point, the median roadside Holiday Inn Express is going to start charging a a fee tied to the Fed Funds rate?
Credit: Holiday Inn Express Newtown
This $1.65 add-on isn’t just stupid, what makes it egregious is that they don’t pretend it adds value to the guest, and it is a fee for processing the sale. In other words, they’re charging you for taking your business and your money.
Since it is not optional, it’s really part of the rate. They’re just breaking it out to make the rate look lower, to make you think you’re paying less or at least make you think their property is cheaper than it is when you’re comparison shopping.
Plus, since it’s collected on property even for prepaid rates sold through travel agency sites, they don’t pay commission on part of the rate. Put another away, all of the reasons to do this seem to essentially be fraud.
Admin and software processing for only $1.65? Seems like a pretty good deal. Lol.
@ Gary — I’m waiting for a hotel that finally decides to be honest by simply adding a fee called “Additional profit” fee. Wouldn’t that be better?
Reminds me of an impractical jokers episode where they were adding a “gouge” fee to restaurant checks and customers just paid it.
When will a tariff surcharge be added? Sort of like the fuel surcharges that are added by airlines.
The 21% tax is a ripoff also. Show the real taxes.
@jns, a “tariff surcharge” would actually be tied to a type of tax, so less scammy than this. On the other hand, does appearing on the screen at $120 or $122 really move the reservations needle at all? Why bother to call it an “admin & software processing fee”, instead of just quoting a rate $1.65 higher?
Now that airbnb has cleaned up their act and will show all-in prices from the start, I think they’re becoming a worthwhile consideration again. (Full disclosure, I have a friend who runs an airbnb in Newton, Kan.)
Only regulations can stop this. Proof everywhere that drip pricing is the default market failure of markets that are unregulated.
Soon to come: ‘toilet paper usage fee’ and toilet ‘flushing fee”!
Philosophically I agree but… the hotels are responding to the travel policy rules in place. Suppose you are traveling on $110 daily per deim. A $100 room rate plus $20 fees is compliant because the the amounts are itemized separately. $100 is less than $110 and the extra $20 goes on a separate line. Conversely, a $120 room with $0 fees is not compliant since the full $120 ends up in a single line item. The bottom line amount is the same (if not more) but breaking the cost up plays the game.
I stopped using HIE when I didn’t stay there for 13 months, went to book using my logon, and all my points where gone – approx 8 yrs worth. Their new policy – don’t use for 12 months and we zero you out. So I checked Marriott, their policy now is 24 months and made the reservation with them so they don’t do the same.
Do the hotel franchisees have to pay a percentage of the fees as well as a percentage of the room rate to the hotel chain? Seems like this might be an attempt to bring in additional money without paying IHG. Maybe if they realized the franchisee was charging extra for their services without giving them a cut, IHG would put a stop to this sort of nonsense (or start taking a cut of the fees).
Lower the tax rate on room rates. Raise the taxes on fees.
Gary may want to start using a ‘make sense’ checker. “Frontier Airlines charges you extra for checking in THAT the check-in desk.”
I suspect what’s at the bottom of this is franchising — the franchise owners squeeze the facility owners that squeeze the (likely contract) workforce so their only recourse is to ream the customer. This is what happened with the recent Frontier debacle — the gate agents weren’t Frontier employees but contractors (likely working on zero hours contracts themselves). The fees become the only way they can make wages. Think of it as “prepaid tips”!
You can’t run an economy like this. The fact its happening says that our economy is in real trouble.
Reminds me of this scene from Seinfeld when Jerry was shopping for a car.
PUDDY: Transport charge, storage surcharge, additional overcharge, finder’s fee
JERRY: “Finder’s fee”? It was on the lot!
PUDDY: Yeah, that’s right. Floor mats, keys.
JERRY: ‘Keys”?!
PUDDY: How ya gonna start it?
At least when you are shopping for a car and they try to pile on the fees you can decide if it is still worth your while to take the new version of the deal. Much easier to walk than at a hotel with all of your luggage. With a car sale, you can play hardball if you are wiling to walk and you know all of the numbers.
I let the dealer talk me into an extended warranty for my last new vehicle. Fortunately I found out the next day that other dealers were willing to sell the same policies from the same company for more than 50% off and that I could cancel the first policy at no cost (the money was returned as a principal payment on the loan.) The dealer I bought the vehicle from must of noticed that they lost some of their profit. I would have stayed with the first dealer if they had been not so greedy and were high but competitive. The new dealer I bought the new policy from was more than half way across the USA. I got the feeling that the new dealer made a lot of their money on selling extended warranties instead of vehicles.
Added to my Do Not Stay list. Thanks again.
We just were informed that our businesses UPS weekly bill will have a 2% processing fee. Not a credit card fee. We are gathering information on how switching to FedEx would work for us.
Much lower than the document fee car dealers charge.
You think hotels are worst than airlines?
Regards to all fees, it’s the FLAG costs money. Regardless.
You have no idea how much the brands takes your money instead of the hotel owners. Come and debate with me to know who is really the culprit here.
It’s a BRAND and the abuse by the consumer who uses points. Draining the owners. Wake-up !!!! Own a hotel and learn the facts where your dollar goes. Online bookings (OTA), brands mandates, fees, rewards points, free everything and labor costs. High insurance, various taxes and other amenities, free breakfast and on and on.
The real crooks are the BRNDS. Not the hotel owners. Do your research bit more.
Check out Brands’ invoices to hotel owners; they charge all sorts of different fees for the same reservation or stay. If you ask their billing and AR department about them, you’ll never get straight answers. Some fees are optional, and they make the hotel owner responsible for getting rid of them by a deadline.
Though I disagree with these fees. It’s a result of franchises charging the hotel these additional costs. As hotels struggle they are passing this to the consumers. We get charged several dollars plus brand fees for regular bookings plus 5% for rewards. Most brands now charge the hotel a 4-6 dollar connect fee for any reservation coming from online.
@Np “Though I disagree with these fees. It’s a result of franchises charging the hotel these additional costs. ”
Hahahahahahaha.
The franchisees sign up for this. They do it because the chains deliver customers to them, and they believe it is worth paying for those fees. Sure, they complain about the fees. They want the heads in beds but not to have to pay for use of the brand that delivers them. Then go independent!
Gary. Most of these fees have been introduced in the last 5 years. Connect fees are fairly new and increasing every year. The hotel franchise contracts are 15 to 20 year long and very one sided. Allowing them to add these fees and made up costs as they please. The same way you get paid by certain brands. They lobby against franchisee and keep owners stuck in these contracts without easy outs. Their lobbying efforts have created a system where banks won’t loan and insurers won’t insure an independent easily. All I can say is your ignorance is the reason these fees will only increase. And as brands consolidate you will have no where to go with your devalued points. It will take years for most of these owners to get out of their contracts. Independent hotels is where this will go beyond a few three four big brands. Hope you enjoy that
Why don’t we just openly admit that franchising in the unregulated hotel industry is unsustainable. The way it’s ended up working is totally unethical and has to be described as a scam. The real ‘criminals’ are the brands but that’s not to let the hotel owners (and in my opinion the management companies) off the hook. They’re all in on it. And it’s the guest that gets punished over and over again
So it’s fairly obvious there’s a CHEAP Hotel property owner commenting here.
Limited scale (or select service) properties are a license to print money.
And create obscene greed.
I use to only stay at this hotel in Jacksonville but never again. The price and service doesn’t add up.
One thing is check out and check in times. Check in at 3:pm and check out at 11am? I should be able to rent a room for 24 total hours.
We have migrated away from IHG and others for this reason.
I just booked Holiday Inn Express in South Lake Tahoe. The tax is very high with a +$3 fee as well. It seems that hotels start to collect their own tax over on customers.