Bob and I recently stayed at a hotel in Hollywood. By and large, it was a good experience. The bill, however, was irritating because the rate changed by $100 based on resort fees and parking fees. I understand why the parking fees might be separate as there are some guests who don’t bring a car.
But resort fees are 100% deception. There is no good reason for them. The guest has to pay them regardless if they used the gym or the pool or whatever amenity the hotel decides to put into the resort fee. So whether you used the resort amenities or not, you are on the hook for paying for them. What is the point of causing all this confusion at checkout? Bob remembers standing in a checkout line where the four people that proceeded him were arguing about the resort fees. Why not just include the resort fee in the hotel rate thus avoiding this problem for both guests and staff at the end of the stay?
I really thought the must be a good reason but, as of yet, the only thing I can find is deception. The resort fee hides a portion of the room rate to the customer. The guest thinks that they are paying $200 for their room but when they depart they are actually paying $250 after the resort fee is added. Many customers don’t discover this until they are leaving the hotel. So why do hotels risk pissing off their customers with this silly trick while also taxing their staff with explaining the bill to angry guests? Why not just include it in the rate?
Because it brings in revenue. In 2015, resort fees brought in 2.47 billion dollars. What is worse, as I looked into resort fees, it is even more deceptive than tricky customers into booking at a low rate and charging a higher one at check out. It is also a way to avoid paying taxes. Hotel occupancy taxes are usually higher than the regular sales tax. The quoted rate is charged the occupancy tax while the resort fee is given the lower sales tax. If the hotel is particularly crafty, they then can charge the higher tax on the resort fee while only being charged the sales tax by the government. The hotel then pockets the difference. The guest is screwed and the government is screwed. Who checks their bill for the correct tax being charged? Who would even know that a difference tax should be charged? Who even knows what the local tax rate should be? I wouldn’t until now.
Furthermore, the hotel only has to pay commission to travel professionals who book their hotels on the room rate and not the resort fee. I don’t know what else to say about this. They are ripping off their travel partners. If I were Kayak, Expedia or Priceline, it would make me a little leery of the hotels that use this practice. Where else are they being shifty about? It doesn’t exactly give one confidence in the veracity of the hotel.
The most irritating thing about resort fees is there is no justifiable reason to have them other than deception. Hotels are being deceitful to their guests and to travel professionals. They are making their staff defend a deceptive practice and they might even be engaging in a little tax evasion. Why is such a clearly deceptive practice still legal?