Hidden Fees in the Hotel Industry: The Unpleasant Surprise at Checkout
The Scandal of ‘Junk Fees’
During my recent three-night stay in New York City, my hotel bill shocked me with 21 additional charges. Among them, nine were labeled as “destination fees.” Despite being promised a “free” third night, I was charged nearly $35 per day for it. To add insult to injury, each fee had separate sales and occupancy taxes. And remember, these charges were only for one of the two rooms my family booked, amounting to a total of $240.
The Deceptive Nature of ‘Destination Fees’
As I had read before, these charges, often referred to as “junk fees,” are becoming increasingly common in the hotel industry, particularly in North America. Some hotel staff may waive them upon request, but I had no such luck at Thompson Central Park New York, a Hyatt hotel. According to Munir Salem, the manager of Thompson Central Park, the fees are justified because they provide guests with extra amenities and benefits.
What the Fee Supposedly Covers
The hotel claims that its “destination fees” include amenities like premium internet access, access to a fitness center, concierge business services, newspapers on request, and one bottle of water per guest at check-in. These should be standard offerings for a hotel charging entry-level rates exceeding $500 per night. Additionally, the fees provide discounts on bike rentals, sightseeing passes, bus tours, and zoo tickets – but these were not services I desired or intended to use.
The Inescapable Burden of Mandatory Fees
Hotels that impose these fees risk leaving guests feeling deceived and taken advantage of. As Rafat Ali, CEO and founder of travel media company Skift, explains, these fees are highly profitable for hotels. However, he dismisses the idea that they will be universally accepted like baggage fees in the airline industry, as there is no way to opt out of them. Ali asserts that nobody likes these fees, regardless of political affiliation.
The Battle for Transparency
Efforts are being made to tackle these hidden fees. The Junk Fee Prevention Act and the Hotel Fees Transparency Act have been introduced in the U.S. Senate to eliminate excessive and undisclosed charges. These bills aim to ensure that all costs are transparently displayed to consumers from the start. Although the outcome is uncertain, public pressure is mounting as demonstrated by a recent lawsuit against Booking Holdings for deceptive trade practices.
The Issue of Transparent Pricing
While Thompson Central Park claims to disclose fees throughout the online booking process, my personal experience proves that this transparency does not extend to phone bookings or situations where reservations are mishandled. Many consumers, including myself, wonder why hotels simply don’t include these fees in the room rate. It seems unjustifiable to charge an extra $50 under the guise of a “hospitality service fee” when guests would happily pay $300 for the room alone.
An Unsatisfying Victory
After the conclusion of my stay, I disputed the fees with the hotel. Initially, I was told the charges could be waived for members of the Hyatt loyalty program – an option I didn’t qualify for. However, due to the complications during our check-in, the representative acknowledged our case as deserving of fee waivers. Despite waiting for nearly two months, the hotel never followed through. In frustration, I contacted my credit card company, which promptly removed the charges. While relieved, what I experienced was never about the money – it’s the unfairness of receiving unexpected fees on a final bill.