Why do hotels charge destination fees and what do they include?

During my recent three-night trip to New York City, my hotel bill ended up including a whopping 21 charges. To my dismay, nine of these charges were called “destination fees,” a term I had become familiar with due to its prevalence in the hotel industry. It seems these fees are on the rise, especially in North America, and have even caught the attention of President Joe Biden. I had read that some hotels are willing to waive these fees upon request, but unfortunately, I had no such luck at the Thompson Central Park New York, a Hyatt hotel.

According to the manager of Thompson Central Park, Munir Salem, the destination fee is justified because it provides guests with amenities and activities. However, upon reviewing the list of amenities provided, I couldn’t help but feel underwhelmed. Premium internet access, access to a fitness center, business services, newspapers on request, and a single bottle of water at check-in were all included. While these are nice bonuses, they hardly seem worth the hefty price tag, especially considering the already high room rates.

It’s clear that these destination fees, often disguised as resort or hospitality service fees, are incredibly profitable for hotels. Prior to the pandemic, consumers were estimated to have paid around $2 billion in hotel fees. Hotels hope that these fees will eventually become the norm, much like baggage fees in the airline industry. However, given the backlash and the push for transparency, it seems unlikely that these fees will ever be widely accepted.

Efforts have been made through legislation and lawsuits to address the issue of hidden fees in the hotel industry. Bills such as the Junk Fee Prevention Act and the Hotel Fees Transparency Act aim to eliminate excessive fees and require clear disclosure of total costs to consumers. Even if these bills don’t pass, they have already put pressure on companies to reconsider their fee structures.

In my personal experience, I found it frustrating that the fees were not clearly communicated during the booking process. Although the hotel claimed to disclose the fees on their website, I had booked over the phone, which resulted in confusion and a new booking on the spot. This lack of transparency is a common issue, even with transparent pricing efforts. Guests can still be blindsided by hidden fees, leading to feelings of frustration and unfairness.

Ultimately, my husband and I decided to dispute the fees with our credit card company. After a few weeks of silence, the charges were successfully removed. While I was relieved to avoid paying the fees, it was disheartening to realize that the victory wasn’t about the money for me. It was about the principle of being presented with a bill that included multiple unexpected charges.

In conclusion, the prevalence of destination fees in the hotel industry continues to be a contentious issue. While efforts are being made to address this problem through legislation and lawsuits, it remains important for consumers to stay vigilant and assert their rights when faced with hidden fees. Hotels should strive for transparency and fairness to ensure that guests have a positive and informed experience.

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