Categorized | Hotels

Hotel fees to rise to record $1.8 billion in 2011…

Posted on 23 September 2011

Fewer hotel guests may be watching $13 movies or making long-distance calls from the room phone, but U.S. hotels will earn a record $1.8 billion in fees and surcharges this year, according to a new study by Bjorn Hanson, a professor at New York University’s Preston Robert Tisch Center for Hospitality, Tourism and Sports Management.

 

“The increase (from $1.7 billion in 2010) reflects a combination of 4% to 5% more in occupied hotel rooms than in 2010, plus new or higher fees and surcharges at many hotels, especially resorts,” he says. “Most (fees and surcharges) have incremental profitability of 80% to 90% or more, so they represent significant contributors to industry profits.”

 

Hotel fees and surcharges emerged in the late 1990s, starting with resort fees, and have steadily increased in recent years.

 

Hotels also often charge for early departures, canceling reservations, Internet Wi-Fi, receiving faxes or packages, delivering room service, restocking the mini-bar and using in-room safes.

 

Group customers have also seen increased charges for bartenders and other staff at events, charges for setting up meeting rooms and baggage holding fees

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