'Guest-gouging' on the rise at high-end hotels

Herb Weisbaum • Profile • E-mail

I don’t like a lot of surprises when I stay at a hotel. Getting a room upgrade, fruit basket or complimentary breakfast is fine. Having unexpected charges on the bill at checkout is a real drag.

Hotels are always looking for ways to raise revenue. They’ve already increased room rates, which are up an average 6 percent from last year. Now they’re adding extra fees — charges not included in the daily rate — to boost the bottom line.

For its July issue, Consumer Reports looked at hotel fees and concluded that “guest-gouging” is on the rise.

Some hotels now charge for providing an in-room safe (whether you use it or not), receiving a package, and storing your luggage with the bell desk. At some places an energy surcharge is added to the bill.

But wait, there’s more! Consumer Reports says some hotels actually charge guests for the routine maid service or for the employee who services the minibar. There could even be a mandatory tip for the staff added to your bill.

Watch out for these 'gotcha' fees Minibar servicing: We all expect to pay dearly for in-room snacks and beverages in the minibar. But now, some upscale hotels charge a fee to pay for the employee who restocks the room. So that $2.50 soda could wind up costing you $5. Consumer Reports says some minibars are now equipped with sensors. “If you remove and replace an item — or bump into the bar — you could be billed.” Room service: Room service is never cheap, but it’s getting more expensive. At many fancier hotels, they add a service charge and a tray fee, plus an automatic gratuity of 15 percent to 20 percent. Be careful — receipts can be confusing. Even when that gratuity is included, there may be a line for giving a tip. I nearly gave a double tip a few times. So I now ask if a tip is already included. Housekeeping fees: That’s right; some hotels now charge you for cleaning your room. In-room safe: It’s one thing to be charged to use the safe. But there are places that tack on a daily charge (about $1.50 a day) even if you don’t use it. At one hotel I contacted, they tell you to ask for the money back at checkout. Baggage: You could pay $1 or more per bag if you need to have your luggage stored before you check-in or after you check out. Mandatory tips: Some resort hotels are now adding $5 to $10 a day as a mandatory tip for the staff. Ask about this before you check out so you don’t double tip by leaving cash in the room. Early departure: Leave before your scheduled departure date and you could be charged a stiff penalty, as much as entire day’s rate. Consumer Reports says members of some hotel loyalty programs might be exempt from this fee.

The fancier the place, the more likely you are to be slapped with a fee or surcharge. For example, Consumer Reports found that 60 percent of high-end hotels charge for an Internet connection, compared to just 10 percent of the budget hotels.

According to Bjorn Hanson, a lodging consultant for PricewaterhouseCoopers in New York, the U.S. lodging industry made $1.6 billion dollars in fees in 2006. Hanson considers a fee to be any charge a guest would not normally expect to pay as part of the room rate. He expects revenue from fees to hit a record $1.75 billion this year.

Here’s the bottom line for travelers: "More hotels are charging fees and surcharges,” Hanson says, “and the amounts of these extra charges are increasing.”

The resort fee – the most hated of all
This is the one that really gets people upset. Many upscale hotels now tack on a fee of $12 to $40 a day to pay for the pool, tennis courts, putting green, “complimentary” newspaper, and in-room phone calls. You pay the fee even if you don’t use any of these amenities.

Because of several lawsuits against big hotel chains, most places that charge a resort fee make sure guests know about it.

“They tell you about the fee when you’re making the reservation and when you check in,” says Joe McInerney, President and CEO of the American Hotel and Lodging Association.

But that misses the point – people simply don’t like resort fees.

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