At this point I think there’s officially nothing that hotels won’t charge fees for anymore.
In this post:
Resort fees are bad enough…
Resort fees are probably the single most frustrating junk fee in the hotel industry. With this, we see hotels tack on a nightly fee that includes some number of amenities, most of which you’d expect to be standard at a hotel (like Wi-Fi, access to the gym, etc.).
We see this at resorts of all price points, and for that matter these fees spread across markets very quickly. When a few hotels in a market add them, they typically end up becoming the norm rather than the exception.
Why do hotels add resort fees?
- Resort fees are a way for hotels to deceive consumers into thinking rates are lower than they actually are, since hotels typically only have to display all-in pricing on the final booking page (this is an important point compared to airline fuel surcharges, since airlines typically have to display all-in pricing throughout the booking process)
- Resort fees allow hotels to pay travel agents smaller commissions (since they only get paid based on the room rate rather than the extra fees), and in some cases avoid the typical occupancy tax that would apply to the room rate
Those are the real reasons, though just to provide both sides, the CEO of the Hotel Association of New York has claimed that guests “appreciate the value offered” by mandatory fees.
…but an energy surcharge is next level
People have often joked, “what’s next, an electricity surcharge?” Well, one hotel seems to be fond of that concept, and has added it to room rates.
The Artisan Hotel Las Vegas charges a $19.95 daily resort fee plus a $3.95 daily energy surcharge. That’s right, the hotel is charging you separately for your electricity, and there’s no way to opt out. Seriously?
What’s next… wait, nevermind, I don’t want to give the hotel any ideas.
In fairness, if you’re trying to deceive consumers and make a few extra bucks, maybe this fee is kind of well thought out? It’s small enough that some people may not even notice it when checking out, yet it can add up, especially when you consider rooms here go for under $40 many nights.
Furthermore, I’d argue that it’s more reasonable than the JW Marriott Los Cabos adding a surcharge when redeeming points.
Bottom line
Prior to this I’ve only ever heard people joke about the concept of a hotel energy surcharge, but it’s now a real thing at a Las Vegas hotel. Fortunately it doesn’t seem like other hotels are matching (yet).
Where do energy surcharges rank on your list of ridiculous hotel fees?
(Tip of the hat to Miles To Memories)
Energy surcharge fee is not a new concept. Station Casinos charged them about 15 years, got sued and settled a class action contesting this fee.
What a complete joke, does the hotel industry just not get the whole point? This is EXACTLY why airbnb' s have become so popular, these nickel and dime add ons will only hurt them more
Really sham job by the author. Clearly no understanding of the industry. Did the author even reach out to the hotel industry for comment? Horrible reporting. Resort fees exist bc of the proliferation of 3rd party bookings like Expedia. Hotels invoice Expedia for their bookings and have to wait 30-90 days+ to get their revenue from Expedia and others. This creates a cash/liquidity issues. Resort fees allow the hotel to correct partial room rent up...
Really sham job by the author. Clearly no understanding of the industry. Did the author even reach out to the hotel industry for comment? Horrible reporting. Resort fees exist bc of the proliferation of 3rd party bookings like Expedia. Hotels invoice Expedia for their bookings and have to wait 30-90 days+ to get their revenue from Expedia and others. This creates a cash/liquidity issues. Resort fees allow the hotel to correct partial room rent up front and not have to wait 90 days. That money pays for labor and keeps the lights on. The article is incorrect staying this isn't taxed. It most definitely is taxed at the localities transient tax rate (horrible reporting, easy to debunk. The author and editor put zero effort into fact checking any of the main topics of the article). This is the worst written story of 2021. No context and clearly nobody has any journalistic integrity to provide any. Is the energy surcharge bad, yes. Is it disclosed prior to coming and included in the agreed upon price, yes. This isn't a bait and switch and it isn't a surprise fee at check in. I couldn't written a more comprehensive and accurate industry story, message me for future articles so you don't look like morons who have no clue what they're writing about.
@Harry A Broker - Lucky's big really isn't the forum for this, so this is my last post. You've got the company you founded listed on your LinkedIn. It looks like a scam, smells like a scam, I'm sure it will attract some AAHOA members because they flock to that sort of thing and try to pull it off themselves, but it doesn't at all seem legitimate. Like I said, you've been out of the...
@Harry A Broker - Lucky's big really isn't the forum for this, so this is my last post. You've got the company you founded listed on your LinkedIn. It looks like a scam, smells like a scam, I'm sure it will attract some AAHOA members because they flock to that sort of thing and try to pull it off themselves, but it doesn't at all seem legitimate. Like I said, you've been out of the industry for 30 years. Plus you worked for a very minor brand. Not exactly stellar credentials.
Word of mouth marketing is hilarious. Not the case in 2021.
@Harry A Broker - looked you up on LinkedIn. You haven't worked in hotels since before I was born. Forgive me for not taking advice from somebody that has been out of the industry since 1988. Good luck with the songwriting.
Make sure you get the surcharge money worth. Have the AC, lights, TV, radio clock, blowdryer on during your entire stay, even when you are not in the room. And if the windows can be open, you leave the windows open while running the AC at full speed during summer heat.
Buddy, where are there rooms for $40 a night? In your dreams. Maybe Monday and Wednesdays between the hours of 7-9 pm....and only if you self check in. LOL. And...the norm in most Vegas casinos are 30-40 per night in resort fees. A couple casinos are 53.95 per night. You should get your facts straight buddy !!!
@Sri - I'm a hotel GM. I can see a couple of things, firstly $10/hour ain't anything. I'm paying housekeeping $14/hour to respond to the labor shortage and I'm staffed up. We're not even in the northeast/California. I don't know if we'll keep those rates as employment levels move back up, but we'll see. Also, paying cash under the table isn't legal, unless you're reporting their income to the IRS.
Also, you're overpaying for Expedia....
@Sri - I'm a hotel GM. I can see a couple of things, firstly $10/hour ain't anything. I'm paying housekeeping $14/hour to respond to the labor shortage and I'm staffed up. We're not even in the northeast/California. I don't know if we'll keep those rates as employment levels move back up, but we'll see. Also, paying cash under the table isn't legal, unless you're reporting their income to the IRS.
Also, you're overpaying for Expedia. If you're under the right brand umbrella, you'd be getting 15%.
Two wrongs make a right, eh Stan?
I am looking for housekeeper as a hotel owner & I am willing to pay $10 an hour cash & I could not find one person in an add that reached 6,400+ people in the vicinity of my hotel. No front desk, no house keepers, no one to do any work.. And all guests think money comes from thin air to provide the most exquisite room for $50 a night.
I believe every hotel...
I am looking for housekeeper as a hotel owner & I am willing to pay $10 an hour cash & I could not find one person in an add that reached 6,400+ people in the vicinity of my hotel. No front desk, no house keepers, no one to do any work.. And all guests think money comes from thin air to provide the most exquisite room for $50 a night.
I believe every hotel should charge the rate adjusted to cost of living index based on 2000 as base year. Pay that honestly without arguing & bartering with the front desk agent making his/her life miserable at the front desk, not being rude if they say sorry or use that as an excuse to bash the hotel online because you have the power to do & make the hotel look bad when all the hotel is doing is to make sure that they are doing all they can to give you all an amazing service.
A little appreciation for the workers go a long way. They are all also humans..
Thanks
Sri
As a hotel owner people don’t realize what they are paying today is less than what they paid in 2000. I am operating a hotel where the rate is less than what it was in 2000 in the same hotel same market. If you place the cost of living index in these 21 years, I am pennies on the dollar to the 2000 rates. I have a decent hotel & the rate is $89. A...
As a hotel owner people don’t realize what they are paying today is less than what they paid in 2000. I am operating a hotel where the rate is less than what it was in 2000 in the same hotel same market. If you place the cost of living index in these 21 years, I am pennies on the dollar to the 2000 rates. I have a decent hotel & the rate is $89. A man walks in & want the room for $50 per night. Seriously? Even in 2001 a mom & pop motel next to me charged $65 plus taxes. He wants $50 in a branded hotel where there are strict compliance on us in terms of operational standards.
And people want more & more & pay less & less. They want expanded breakfast, labor want $15 minimum wages, in NY states mandatory IRA has been made the law, people don’t want to work & are lazy sitting & collecting unemployment & the banks have not let up on the mortgage & where do we stand as owners.
Travel agent commission used to be 10% Now Expedia charges 18% commission on the room rate. As hotel owners it has become stifling to run a business.
Next time when you write an article, research & write a well balanced article. Don’t write an article pandering to the masses to make yourself look important.
Thanks.
Call me a jerk, but I'd set the ac to 50 degrees, and turn on the hot water tap and just let it run, for my entire stay.
The UK got this sorted years ago. By law the price you quote as "the price" is the price you charge on checkout with extras (stuff being charged to room etc) having to be agreed at the time of purchase. Any other mandatory tax or fee added later is simply illegal (taxes for example must be incorporated within the headline price) and Trading Standards will be very interested if anyone tries it on. Trump Turnberry...
The UK got this sorted years ago. By law the price you quote as "the price" is the price you charge on checkout with extras (stuff being charged to room etc) having to be agreed at the time of purchase. Any other mandatory tax or fee added later is simply illegal (taxes for example must be incorporated within the headline price) and Trading Standards will be very interested if anyone tries it on. Trump Turnberry backpedalled very quick when it tried to circumvent this with a £20 resort fee and drew media attention about its illegal practices. It doesn't speak well of American democracy that the USA or individual states haven't managed to implement such an obviously fair and reasonable measure.
Totally fine as long as it covers EV charging
Nett pricing inclusive of tax and all ancillaries should be mandate soon on all hotel sites. Since its not an option to remove them, the consumer's rights shall be taken as first and only priority.
Regarding airbnbs, cleaning fees are becoming the resort fees where there are rooms with $50 rate and a $50 cleaning fee. I guess it's to discourage one night stays?
@Ryan (way at the top, I doubt you'll see this) - some hotels already sort of charge a flooring fee. I'm sure everybody does it differently, but my ownership sets aside pet fees we take in specifically to use for CapEx. Generally carpet replacement is the go-to item. Of course, other companies may just count it as revenue and move along, it's certainly not standard across the board.
Tile would be the best option for...
@Ryan (way at the top, I doubt you'll see this) - some hotels already sort of charge a flooring fee. I'm sure everybody does it differently, but my ownership sets aside pet fees we take in specifically to use for CapEx. Generally carpet replacement is the go-to item. Of course, other companies may just count it as revenue and move along, it's certainly not standard across the board.
Tile would be the best option for hotel rooms from a cleanliness PoV (especially if we're accepting pets), but hey, who listens to us guys in Ops?
Like businesses that require mask for the vaccinated, I take my money elsewhere.
The owner of this hotel is the same guy that owns LV.NET. I have heard stories about how horrible he treats people especially his very own employees. Be very careful when dealing with him or any company he owns. To him, you are nothing more than a vagabond living in his kingdom.
Nickel & diming is the reason why air bnb got so big, and why I voted with my feet and rarely use hotels now if I myself am paying (and can't expense it back).
Seriously, when will this end? Charge me a fee per flush and I'll pee in the sink
I read an article a couple of years ago about Hotels complaining about people booking private accommodations like Airbnb and holiday lettings etc, As it was taking income away from them.
If this greed continues then they have only got themselves to blame, People will only take so much.
Wanna bet they don't have to pay tax on that surcharge?
Would you rather have your room go up by $5 - and then pay the extra hotel tax or pay $3.95 to offset your electricity usage?
Mad, but not surprised when I recall that no good will ever come from Vegas.
I say take your business elsewhere and get more for your money then wasting it on all these ridiculous bogus fees that are all made up anyways. Spend your valuable time and money in less greedy cities. You can gamble almost anywhere now.
I'm ashamed to live here
You can find hotels wherever you want to go that don't charge these ridiculous rip off fees if you look hard enough. Hyatt Place and Hyatt House hotels don't usually charge them and are quite nice, I don't need a fancy on site restaurant so I stay in them but won't if they start to charge "resort fees. "
I never, NEVER, stay anywhere that adds "resort fees", Congress should ban them as I believe they are banned in the EU.
I hope every hotel adds a energy surcharge these are the times we are living in
I applaud these hotels for this surcharge and hopefully will lead to a lower hotel room price now and hopefully every hotel will follow just like Destination/Resort Fees
In a way, it is not surprising anymore. Not only do hotels and airlines come up with more ways to extra money quick, but that is just simply business. In the banking world, they have teller transaction fees. I know that M&T Bank and Bank of America charge these really ludicrous nonsense fees. Utterly ridiculous.
Left Vegas 30 years ago. Never looked back.
Believe it or not. The hotel will get that money one way are the other.
I live in Las Vegas and the Artisan hotel is a dump. They were shut down a few years ago and when they reopened, they bragged about having clean bedding. Stay anywhere else if you go to Vegas.
The larger resort paid big fees to opt out of NV energy. Take a drive down us 95 to Laughlin and see a 20 mile long solar farm.
The Artisan is a dump. It's not a resort. The friggin Super 8 has a resort fee .
Take your food and beverage to another non-hotel business. Hit the hotels where it hurts and let them know it.
A surcharge, surcharge to cover the hotel's cost of processing all their surcharges.
As it's LAS are we sure energy surcharge is related to AC power??? Nothing to do wuth MDMA, redbull & vodka, any gender scorts to the room???
A couple of years ago my niece booked the Artisan and I was going to book it too but looking at pictures and reviews it was a dump. She wound up booking Hilton with me after she checked into Artisan.
I'm pretty certain that the hotels pay ZERO TAXES on all of the fees that the charge. Its all tax free money to them which is why they continue to keep charging them and they keep raising the fees while the room rates stay pretty consistent.
They sounds illegal. Pretty sure they are legally obligated to provide guests with electricity. Businesses that engage in this nonsense did to be crap to start with so I would steer clear of this property. They want to advertise the cheapest room rate out there and then tack on all these little fees. Likely the guests there are the types that would be flying spirit.
I get you're out for the deal. I respect that hustle. But it's a hotel you can buy out for 8k with a pool and a bar, free valet, and an amazing vibe. Plus a ten minute walk to the strip. Also, if you aren't a jerk they give you a bottle of champagne priced at 25+. This charge is petty at best but again, I respect receipt hustling. There are bigger fish to fry in Vegas, tho. Artisan is the best staycation and adults only spot for any budget.
The U.S. needs to get with the program. Many countries around the world provide All-in pricing instead of trying to deceive consumers with hidden/unexpected fees and surcharges here and there. It was a breath of fresh air when booking hotel stays in Australia. The price was the price. I didn't have to click through a bunch of screens to find out the rates doubled due to fees.
I imagine it's part of some consumer...
The U.S. needs to get with the program. Many countries around the world provide All-in pricing instead of trying to deceive consumers with hidden/unexpected fees and surcharges here and there. It was a breath of fresh air when booking hotel stays in Australia. The price was the price. I didn't have to click through a bunch of screens to find out the rates doubled due to fees.
I imagine it's part of some consumer friendly legislation, but it's nice that it carries over to all aspects of consumerism there, not just car rentals/hotels/airfare.
I live in Las Vegas and these kinds of fees are seriously hurting the city. People still come but less often and have less money to spend on other things because of this. It’s absolutely ridiculous and does nothing but gouge the customer for more and more money. You come to Vegas, besides the hotel costs you pay for parking, you pay a resort fee, and now they want to charge you for electricity, are...
I live in Las Vegas and these kinds of fees are seriously hurting the city. People still come but less often and have less money to spend on other things because of this. It’s absolutely ridiculous and does nothing but gouge the customer for more and more money. You come to Vegas, besides the hotel costs you pay for parking, you pay a resort fee, and now they want to charge you for electricity, are they hotel rooms or apartments rented by the day? Even before the pandemic I watched as the number of people seemed to start declining. I’m sure this is also due to the Indian casinos which the big Vegas casinos are getting into also. Vegas used to be kind of place where hospitality was king and hotel rooms were cheap so people would gamble more. Corporate greed is destroying Vegas. Any way they can get more money out of the customer. It’s sad. Locals don’t even go to the strip because of this kind of crap. Whatever happened to value to the customer? If this kind of thing continues it’s going to seriously start hurting the economy.
U-Haul (!!) charges a required environmental fee for using their gas-guzzling moving trucks, even the cargo vans!
As an ex operations mgr for a national chain hotel Corp, you don't want to know the actual "cost" for your room rental. Managers are allowed to "discount" rooms up to 80% to achieve full occupancy levels. It's sounds like they are now making occupants pay for operational costs, thus making more profit per room. Even with a discount of $20-$100 off the advertised rate, they still make a profit.
Airlines tack on a lot of fees too.
For domestic flights, I'm often a Southwest person, as they are the dominant domestic carrier at my nearest airport. In 2019, I flew American to Miami and was shocked: "You want to charge me extra to pick a non-middle seat?" "You want to charge me extra to check a bag? So you would rather I fight with other people for the limited overhead bin space?"
I am a huge fan of all-in pricing. Just hit me up with the final price.
Mark F. - hard disagree. Hotels charge these and they typically don't earn rewards (beyond what you spend on the credit card), they don't count towards lifetime status (where relevant), and they make searching on aggregators / hotel websites an inefficient exercise.
They don't add value to the customer experience. This is going to sound mercenary, but the only reason places charge these is because they can. And if you're staying and paying, you're contributing...
Mark F. - hard disagree. Hotels charge these and they typically don't earn rewards (beyond what you spend on the credit card), they don't count towards lifetime status (where relevant), and they make searching on aggregators / hotel websites an inefficient exercise.
They don't add value to the customer experience. This is going to sound mercenary, but the only reason places charge these is because they can. And if you're staying and paying, you're contributing to the problem.
It's the same thing with any economy. Airlines screwed passengers constantly and only in a moment of absolute desperation when all business travel was gone did they suddenly find the goodwill to remove change fees? It was necessary to get any revenue - the model had to change because the alternative was no business.
A destination fee the further you fly the more surcharges you buy ......
It's time to legislate all-in pricing for hotels, just like airlines.
When I was a kid Motel 6 used to require you to put quarters into a slot to get the TV to work. I thought that was bad.
Perhaps we have all misunderstood this "energy charge." The small amount is just a place holder, sort of like the maintenance fee on a line of credit. The full "energy charge" is $500/hour
;-) discretely added to the bill.
I refused to pay the furniture surcharge and there was no bed.
The hotel is just saying:
WE HATE GUESTS!
I'll make the prediction right here that Vegas hotels and restaurants WILL be adding a water surcharge in 2022. There has been a drought in the lower Colorado basin for 4 years and water use reductions/withdrawls from the Colorado river are going to be implemented.
Cancel, Cancel, Cancel, this is where the cost out weighs the benefit.
Much like California hotels in municipal utility areas (where electricity rates did not spike) that charged energy surcharges during the California power crisis in the 2000's, this charge is baseless. NV Energy's pricing to these resorts has not changed significantly in recent years. This is pure "nickel and diming" & probably fraudulent (due there being no basis for the charge). If the hotel was really worried about their energy bills, they could easily implement some...
Much like California hotels in municipal utility areas (where electricity rates did not spike) that charged energy surcharges during the California power crisis in the 2000's, this charge is baseless. NV Energy's pricing to these resorts has not changed significantly in recent years. This is pure "nickel and diming" & probably fraudulent (due there being no basis for the charge). If the hotel was really worried about their energy bills, they could easily implement some no cost (or quick ROI) energy efficiency measures.
What is the reason given for this electricity surcharge? What logic does it stand on?
Fuel surcharges for airlines were a bogus fee, did they think they can duplicate it?
Also, a big difference between airline and hotel is that inventory for hotel rooms in the area on any given day far exceeds inventory for a specific route/flight on any given day. In other words, customers can pick. And they shouldn't pick this one given the myriad of choices in Vegas.
What's worse? A $19.95 Resort Fee plus $3.95 energy fee or a $25 resort fee?
Is it in the wording? It's all just part of the cost of the room. It makes for an extra step in the booking process, but if you decide where to book without knowing the total cost, then that is your issue.
This might be new in Las Vegas, but it has existed in Reno for *decades*. I used to do regular work trips to Reno around 1985-1988. The two “good” (Atlantis & Peppermill) hotels instituted an Energy Surcharge in response to some (now) long-forgotten Energy Crisis. Guess what: that surcharge has *never* gone away.
Have you looked at the location of this hotel? It's like if Circus Circus had extra land and sold it to someone because they didn't want to be next to an oil change station. Literally.
When you build a massive city in the desert that is slowly depleting water resources and using ungodly amounts of electricity, eventually this stuff will become more common.
I gave up on Vegas after the economy/real estate mess back around 2008. I went out there thinking I would be treated well since I was giving them business while many others were negatively harmed by the stock/real estate markets falling apart. Instead everyone seemed to have their hand out and were trying to screw you even more. Since then the only time I was in Vegas was a brief overnight visit on a road...
I gave up on Vegas after the economy/real estate mess back around 2008. I went out there thinking I would be treated well since I was giving them business while many others were negatively harmed by the stock/real estate markets falling apart. Instead everyone seemed to have their hand out and were trying to screw you even more. Since then the only time I was in Vegas was a brief overnight visit on a road trip that happened to go through Vegas.
Honestly I don't miss it. If you need to gamble there are a ton of ways to do so nowadays.
If anything is mandatory, it shouldn't be tacked on as an extra "fee" but included in the advertised price. This applies not just to hotels, but to airlines, or any other service. "junk fees" is absolutely right. This is a garbage, deceptive, manipulative practice.
As if we needed another reason to avoid Las Vegas? Trashy, trashy, trashy.
An "environmental fee" consisting of a $0.50 charge for every time you flush the (metered) toilet.
Seriously, these hotel owners/managers are lowlifes to keep packing on gratuitous fees. And that quote about customers "appreciating" it? Pure cowplop. Makes me wish the mob still ran Vegas. They were a lot more honest to deal with and cared about customer service a lot more than the weasels that replaced them.
I will start peeing in the sink if there is a fee to flush the toilet.
Let’s not forget one of the founding locations that introduced “resort fee’s” was Vegas and look how many countries and hotel chains have followed. Please nip this in the bud before it gains momentum.
Water, air con, and towel fees labeled as “environmental surcharges”
Maybe hotels should copy more from LCCs, where basically nothing but a room is included in the base price. You know, because their most valued guests demand such extra fees.
Air/Breathing surcharge.
Chakra surcharge.
Feng Shui surcharge.
Architectural sightseeing surcharge.
Customer service surcharge.
Instagramability surcharge.
Check-in surcharge.
Check-out surcharge.
Entry surcharge.
Exit surcharge.
Come on hotel managers, there is room for improvement! As a fully capitalistic shareholder I'm slightly disappointed with the money that you are leaving on the table instead of bringing ti to e.
I'm reminded of a documentary about a hotel run by Daffy Duck... For those who'd like a little laugh, Google "Looney Tunes Scammy Hotel"
Ok if they’re fine with guests doing some heavy crypto mining in the room then from check-in to check-out!
Unbundling. So charge $100 for the room. If you need water $25, electricity $25 , linen $25 etc
Flooring surcharge, for walking on their floors; toilet surcharge for using the toilet; room key surcharge; window surcharge, since you will look out the window...
Shouldn’t Travel Agents be the most upset about these fees, as they aren’t commissionable?
As long as they don't charge me extra for shampoo in tiny bottles
Water and Sewer surcharge, next.
Hoping and praying Congress finally gets involved and ends this deception.
Back in the early 2000s a lot of CA hotels were doing this and there ended up being a class action lawsuit… I remember getting some worthless discount coupons from Starwood as a result.