The hotel industry has a real problem when it comes to pricing transparency. While airlines have to display all-in pricing throughout the booking process, that hasn’t historically been the case with hotels.
Many hotels have gotten in the bad habit of “drip pricing,” whereby the rate seems low when you start the booking process, only for mandatory fees (like resort and destination fees) to be added later.
We recently learned about a positive update on that front from Marriott, as the hotel group will no longer hide resort fees. It looks to me like that change is now live, so I wanted to take a closer look at how Marriott is now displaying its pricing.
In this post:
Marriott displaying hotel pricing more transparently
Marriott is now displaying pricing that includes all mandatory fees through both its website and English language mobile app. While Marriott had until May 15, 2023, to implement this change, this has gone live as of the past day, as far as I can tell. This means that the initial price you see through Marriott booking channels is inclusive of all destination and resort fees, so the only additional cost are taxes and any government fees.
Furthermore, during the booking process, hotels are required to explain exactly what’s included with mandatory fees, so there is more transparency surrounding what’s included with these fees.
Marriott claims to be “the first hospitality company to change its display, leading the industry on this important issue.” However, when Marriott refers to this as an “important issue,” keep in mind that the company isn’t doing this voluntarily. This is required due to a 2021 settlement with the Attorney General of Pennsylvania, as Marriott was facing lawsuits over its practice of not properly disclosing extra fees.
Just to be clear, hotels can absolutely continue to charge destination and resort fees, but rather this change just requires hotels to be more transparent. However, not as many hotels may feel the need to charge these fees if they have to display these as part of the initial cost shown. There might still be some other benefits to having these fees, like tax benefits, lower commissions for travel agents, and more.
Marriott’s more transparent website pricing
Now that the changes are live, what does this look like in practice? When you go to Marriott’s website and look up rates for a particular hotel, you’ll now see that on the initial search page the cost per night will show any resort fee, if applicable. For example, looking at the Ritz-Carlton Maui, you’ll see that it states that the $872 rate “Includes 40 USD Resort Fee.”
You can even click on the small “i” next to the resort fee, and then you’ll see exactly what it includes. Hey, this is actually super handy!
If you want to instead see the rate displayed inclusive of all mandatory taxes and fees, you can check the “Show rates with taxes and all fees” box at the top, and then you’ll get the total cost.
Marriott’s more transparent app pricing
The app works similarly to the website, though there are a couple of key differences. First of all, the app defaults to showing the rate inclusive of all taxes and fees.
You can change that setting, and instead choose to see rates that don’t include taxes and fees, if you’d like.
When you choose to search pricing that way, you’ll see the cost of the resort fee displayed in exactly the same way during the booking process.
The only thing I’m noticing that’s different with the app vs. the website is that I don’t see the resort fee inclusions listed just yet. Presumably that will still be updated before the May 15 implementation deadline.
Will the industry follow Marriott’s lead?
Marriott is only updating its pricing in this way because it has to, so now the big question is whether other hotel groups will change their practices as well.
President Biden has committed to banning surprise resort and destination fees, requiring hotels to display all-in pricing earlier in the booking process. However, I imagine there’s quite a long road to that getting implemented. After all, Marriott’s settlement with Pennsylvania dates back over 18 months, but is only being implemented now.
I do think that sooner or later we’ll see other major hotel groups follow Marriott’s lead here. It’s simply the decent thing to do, and the practice of trying to hide fees until the final step of the booking process just seems downright unethical.
I think one interesting consideration here is what this means for online travel agencies. For example, with this change, Marriott has to display pricing inclusive of fees, though third party websites (like online travel agencies) won’t.
Major global hotel groups have spent the past several years trying to encourage people to book direct, given the high commissions that online travel agencies get. If online travel agencies can show lower initial prices for Marriott properties, I can see people being fooled by that, and an increasing number of people booking through third parties.
That might actually be the biggest motivation for hotels to eliminate these fees, since it would negate most of the benefits of having these fees to begin with.
Bottom line
Marriott has started displaying pricing that includes all mandatory fees during the booking process. The first price shown now includes destination and resort fees, and Marriott also clearly discloses what’s included with these fees during the booking process. I’m impressed by Marriott’s implementation of this, and it’s great news for consumers.
While this doesn’t spell the end of these mandatory fees (at least not yet), this is a huge step in the right direction when it comes to transparency. With online travel agencies not having to include these fees when marketing Marriott properties, I wouldn’t be surprised if this leads to more people booking through third parties, and maybe that will be what kills these fees in the end.
Here’s to hoping that other hotel brands follow Marriott’s lead, whether voluntarily or involuntarily.
What do you make of Marriott’s new, more transaparent pricing?
Really?? They’re not transparent at all! Even booking a room at a Fairfield inn for $112 in GA, ends up $133! Taxes and fees it states is $21.80 that’s over 19% when GA tax is 7.4% so what’s the rest of the $$ for?? Wouldn’t know because there’s NO TRANSPARENCY
These hotels and travel portals all operate in markets where they are obligated to display the total price, so they have the systems in place already. They're just choosing not to.
I can’t be bothered reading the extra long post but the resort fee at the Royal Hawaiian has always been a joke. You are paying an exorbitant amount in US dollars for nothing! All it is is a rip off. That’s the only hotel I know of where it’s better to go through a third party. That shouldn’t be the case. Even when you book a package that includes the resort fee they try to...
I can’t be bothered reading the extra long post but the resort fee at the Royal Hawaiian has always been a joke. You are paying an exorbitant amount in US dollars for nothing! All it is is a rip off. That’s the only hotel I know of where it’s better to go through a third party. That shouldn’t be the case. Even when you book a package that includes the resort fee they try to charge it again. Terribly ignorant staff st check in (and that’s me being polite). I will never forget how they reduced my elderly mother to tears when she was excited to bring her family on what she thought would be a fabulous experience. This is a woman whose first stay at the hotel was in 1958!
I always search inclusive of taxes and fees. However, the key point is that they need to be more honest now in this being the default, etc. I do think charging for beach chairs, towels, or things that are usually included in the room rate at most hotels is outrageous. Charge a few more bucks for the room and nobody would notice.
Why couldn’t hotels simply not allow OTAs to book their rooms? In the airline industry SW has done this for years and it has worked out well for them.
Frankly I hate this requirement. Anyone with a brain can click the “show all taxes and fees” to see total cost. I’m in favor of informed travelers. The idiots that are clueless about this don’t frankly deserve to be spoon fed
Let’s be honest. There’s nothing more “ghetto” than being nickeled and dined regardless of if it’s airfare or hotel or car rentals. Give me one price and include all your petty fees that way there’s no surprises at check in.
While I think with all the transparency, this is fair game now. Almost good job Marriott (tax and fees too?).
But the updated post with a particular fee example (which I agree is good to disclose) made me laugh so hard.
What's being charged as Ritz-Carlton Maui's resort fee is hilariously superficial.
Lei Greeting "Upgraded Floral" Lei once per stay. How do you upgrade lei flowers, 2 hours more fresh?
Will that soon be a Bonvoy benefit? Upgraded welcome drink?
Helps. But the worst offenders are the car rental companies. Airport fees, recovery fees, surcharges, facility charges, concession fees and taxes manage to turn a two-day $60-per-day rental into a $225 charge. The per day cost quoted has become absolutely meaningless.
They have the fees to avoid taxes, whether it’s resort or airline baggage fees. Until everything get taxed the same, there will always be junk fees.
They can charge any garbage fee they want for all I care, as long as it's included in the total advertised price shown when searching, and not added later in the booking process.
What’s a “resort fee”? Haven’t paid one in years.
I like hotel loyalty programs that don’t gouge their most loyal members.
So you've been staying in Motel 6 these day huh?
@UA-NYC
I've found that in some markets, it's practically impossible to avoid a "resort" fee or "destination" fee or whatever they call the junk fee they're gouging you with (San Francisco comes to mind) for "one 'free' fax per day!" and "ability to print your boarding pass before going to the airport!" and "unlimited 'free' LOCAL CALLS!" and other garbage nobody wants or needs.
Other markets you can sometimes find a diamond that *doesn't* rip...
@UA-NYC
I've found that in some markets, it's practically impossible to avoid a "resort" fee or "destination" fee or whatever they call the junk fee they're gouging you with (San Francisco comes to mind) for "one 'free' fax per day!" and "ability to print your boarding pass before going to the airport!" and "unlimited 'free' LOCAL CALLS!" and other garbage nobody wants or needs.
Other markets you can sometimes find a diamond that *doesn't* rip you off - Hyatt Place in Las Vegas is one I've found, where Las Vegas is rife with properties that gouge you.
God, so many in the comments still either don't get it, or purposely ignoring the issue. Yes, we aren't stupid, we all understand that the price for the rooms will go up once the resort fees are rolled into the price of the room. The point is so that they aren't wasting the consumer's time with fake prices when someone looks up hotel rates.
If you're gonna charge me $150 per night, say you're gonna...
God, so many in the comments still either don't get it, or purposely ignoring the issue. Yes, we aren't stupid, we all understand that the price for the rooms will go up once the resort fees are rolled into the price of the room. The point is so that they aren't wasting the consumer's time with fake prices when someone looks up hotel rates.
If you're gonna charge me $150 per night, say you're gonna charge me 150 per night, don't tell me you're gonna charge me $105 only for me to put all my info in (which you will no doubt sell to advertisers and/or spam the shit out of), make me waste minutes of my life clicking through a bunch of pages only to be presented with 150 per night total.
"I do think that sooner or later we’ll see other major hotel groups follow Marriott’s lead here. It’s simply the decent thing to do, and the practice of trying to hide fees until the final step of the booking process just seems downright unethical."
Since when have hotel companies been decent and/or ethical?
Yes! This is long overdue!
In my experience, it's only US problem.
The European versions of sites / apps are inclusive of all taxes and fees by default, it's only if you are looking for properties in the US or with US regional settings that you don't get the real total (for instance on hotels.com or booking.com)
The Marriott App already had all taxes included, never had to pay more than the indicated amount in Asia/Europe/Middle East/Africa.
Not true. I recently booked a hotel in the Loire Valley. I thought I was getting the inclusive rate until I digged into the email confirmation waaaay down in the bottom where it shows am additional $50 in tax plus (in their words) any other applicable fees. No idea what that means but sounds like own season. I then canceled and re-booked a pre paid room and that included the tax and states no other...
Not true. I recently booked a hotel in the Loire Valley. I thought I was getting the inclusive rate until I digged into the email confirmation waaaay down in the bottom where it shows am additional $50 in tax plus (in their words) any other applicable fees. No idea what that means but sounds like own season. I then canceled and re-booked a pre paid room and that included the tax and states no other fees to be applied "paid in full". So yeah any hotel will play this game.
As far as I can tell, the properties in South East Asia and East Asia already provide the complete rate. The only additional fees are the taxes from the government.
We recently stayed in Copenhagen at a very nice hotel. Yes the rate we booked was all inclusive (I really like the VAT vs add on sales taxes in the US) but when we checked in we were informed that due to increased energy prices (a result of Russia/Ukraine) we would be charged an additional 25 Krone (little under $4) per person per night as a surcharge
"will be inclusive of all destination and resort fees, so the only additional cost will be taxes and any government fees."
How f***ing hard is it to add taxes and any government fees to the price displayed?
It's not like their IT system was built in the 1800s where each property needs to ride a horse and buggy on a Tuesday to send in their tax and fees documents. (LOL, can't believe something is still...
"will be inclusive of all destination and resort fees, so the only additional cost will be taxes and any government fees."
How f***ing hard is it to add taxes and any government fees to the price displayed?
It's not like their IT system was built in the 1800s where each property needs to ride a horse and buggy on a Tuesday to send in their tax and fees documents. (LOL, can't believe something is still based this obsolete system)
Or does tax and fees change everyday, or the property is gerrymandering around for different tax rates.
Exactly right. And indeed, for any global hotel group, their system 100% definitely can display prices including taxes and government fees, because it's required by law in most of Europe and in many other jurisdictions.
Eskimo & Rich: Are Y'all even Marriott customers? I ask because I know both of Y'all didn't READ the article above either. Marriott has a button/toggle feature on the app and site (and has had for YEARS) to ahow all taxes & governmental fees when searching and booking. Ben even shares a screengrab of it above. Plenty of things to complain about when it comes to hotel chains and especially Marriott, but this isn't one...
Eskimo & Rich: Are Y'all even Marriott customers? I ask because I know both of Y'all didn't READ the article above either. Marriott has a button/toggle feature on the app and site (and has had for YEARS) to ahow all taxes & governmental fees when searching and booking. Ben even shares a screengrab of it above. Plenty of things to complain about when it comes to hotel chains and especially Marriott, but this isn't one of them. It's nice to read and do research before writing irrelevant comments.
Just coming off from the most expensive vacation of my life but staying at an amazing resort I would say resort fees are worth it. I bought $200 in 5’s and 1’s with me to tip staff. Know what you’re getting into before hand otherwise book an air bnb if resorts are too expensive for you. Same destination same company you’re with.
You probably mean staying in a resort is worth it. Regarding hotel imposed mandatory fees, why should they not be included in the room rate?
@Regis
The room rates will just be higher if resort fees are included. Comes out even in the end. I haven’t seen any “surprises.” Or Joe Biden is questioning the actual fees and whether or not they should even exist. Perhaps but again the room rates would just increase. Resorts cost money to run ; maintenance, landscaping , cleaning , engineering , pools , plumbing , etc.
@D3kingg
Now if any elected representative can fix the broken tip system.
The room rates will just be higher if tips are included. Comes out even in the end.
@Eskimo
The tipping culture is aggravating especially at corporations like Starbucks , Chipotle , etc. You are basically paying employee salaries for corporate execs who are making 500K and receive a 1.5M bonus at the end of the year.
Let’s do it the other way around: Instead of abolishing tipping, extend it. The managers in the Starbucks corporate offices should also be paid just by tips.
The managers in the Starbucks corporate offices should also be paid just by tips.
They sorta are... 'cept that theirs are stock tips, and the government has made it clear that they'll look the other way when millionaires/billionaires blatantly attempt to manipulate the market in their favor.
Just don't be a working-class dude with a RobinHood account....
@D3kingg
I'm not going to judge the size of execs' compensation package. Like resort fees, their compensation would just even out.
The problem I've been reading a lot recently is delivery drivers get their tips short by the app, i.e. you tip them $5, app pays them $2 or worse $0. How broken the system is, taking away tip is a big no. And there is no transparency over this issue.
PS. No one should tip at Starbucks or Chipotle.
@Eskimo
Didn’t mean to go off topic but in regards to tipping; I was staying at a resort so I went prepared to be tipping valet , bell person , housekeeping , pool attendant , etc .
The $205 per night after taxes , resort fees , and $55 valet plus tip was over $345 per night. And of course I only received points based on the $205 and limited incidentals.
The only other...
@Eskimo
Didn’t mean to go off topic but in regards to tipping; I was staying at a resort so I went prepared to be tipping valet , bell person , housekeeping , pool attendant , etc .
The $205 per night after taxes , resort fees , and $55 valet plus tip was over $345 per night. And of course I only received points based on the $205 and limited incidentals.
The only other thing that can be done is letting the resorts deteriorate or become limited services if resort fees are remove or more transparent. This is a confusing article.
Transparency is cool and all. But resort fees are going the same place where taxes and tipping are going.....UP. They surely aren't disappearing and they aren't going down.
It's called inflation.
Actually it's not inflation but making the earnings call's top and bottom estimate # and forward guidance.
'Bout time. Can't believe hotels can get away with this. Charge what you want to charge, but bait and switch is not the way to do it.
It’s great to see a global corporation include more of the actual price in their price quote
This is a good start but hotels need to start displaying prices with all fees AND taxes included in the price like airlines do. The tax rates vary so much depending on where the hotel is located that it's important consumers know up front what the total cost will be.
Last time I stayed in San Francisco I was hit with FIVE taxes/fees: (1) room tax, (2) CA tourism tax, (3) SF tourism tax, (4) central business district fee and (5) destination fee, none of which was part of the advertised room rate. This is not right.
Marriott.com already has a checkbox to display all taxes and fees in the price on the search result page. They really should just make that box checked by default and be done with it.
@Michael
Exactly!!!
Not even a check box needed.
It's not like someone is this world is eligible for rates without having to pay tax and fees.
They should boldly show the total prices including absolutely everything, and below list the share of the hotel (including all scam fees), share of municipality, share of the state and share of the feds.
Problem is that the lawsuit targets Marriott. While the other hotels continue to hide fees so having a checkbox needs to be across the board. Marriott doesn't want to show full rates while everybody else shows partial rates. Look at the price diff right now between Marriott with it's checkbox checked and Hilton in London or paris.