Many hotel owners have spent the past few years trying to see how many BS fees they can get away with adding to room rates. Of course we see resort fees and destination fees, but nowadays it goes way beyond that, from energy charges, to sustainability fees.
In this post:
Marriott LAX adds hotel worker surcharge
As noted by rambling man on FlyerTalk, it looks like some LAX-area hotels are adding a new surcharge to room rates. For example, when you go to the Marriott LAX’s website, you’ll see the following note, without a further explanation:
“Please note – A daily Hotel Worker Protection Ordinance Costs Surcharge-local fee of USD 10.72 plus tax will be added to the room rate.”
You’ll also see this reflected when you pull up the rate, as you’ll see a $10.72 nightly charge listed as a “Local Fee.”
The Renaissance LAX also has an $8.70 nightly surcharge for the same reason, while other hotels in the area don’t seem to have this (yet).
The unbundling of hotel rates continues. Maybe next we can look forward to a hot water surcharge, a fee to use the toilet, and a check-in fee. Ryanair really should get into the hotel industry!
What does this surcharge cover?
In July 2022, Los Angeles Mayor Eric Garcetti signed into law the hotel worker protection ordinance. What does this include?
- Hotels have to supply workers with personal security “panic button” devices, for their personal safety while at work
- Hotels have to pay wage premiums when giving workloads that exceed specified limits, and hotels must get written consent from workers who work more than 10 hours per day
Just to crunch some numbers here:
- The Marriott LAX has 1,004 guest rooms, so for how long does the hotel have to charge each room $10.72 per night before the panic buttons are paid for? At 100% occupancy, this fee would amount to nearly $4 million per year, so if that’s really necessary to pay for these panic buttons, then I need to get into the panic button business!
- We’re supposed to pay wage premiums for when staff are given workloads exceeding specified limits, all when daily housekeeping has been permanently eliminated? This sounds like a hotel issue, not a guest issue…
- Also, how exactly was the pre-tax total of $10.72 per night decided? It’s almost like the hotel is trying to make it sound like something very exact so it comes across as a government fee, rather than the hotel using this to pad its bottom line
Bottom line
I’m not sure where exactly this falls on the scale of absurd hotel fees (since there’s lots of competition), but the Marriott LAX has added a nightly hotel worker surcharge. The hotel is claiming this is because of a law that was passed in July 2022, requiring hotel workers to have panic buttons for their safety, and also placing limits on how much people can work without written consent.
What do you make of this hotel fee?
I noticed it a few weeks/months ago. First, I thought it was a glitch/funny fee that the property might waive. However, after an award stay last weekend, I was indeed charged the fee - $12.43 incl. tax to be exact. I confirmed it with Marriott LAX's front desk - "health fee" according to them but more like "reimagined resort fee" in my book.
The government is starting to do something about it. Last month, the Federal Trade Commission proposed to eliminate all these junk fees. See: https://www.whitehouse.gov/briefing-room/blog/2022/10/26/the-presidents-initiative-on-junk-fees-and-related-pricing-practices/ and https://www.whitehouse.gov/briefing-room/blog/2022/10/26/the-presidents-initiative-on-junk-fees-and-related-pricing-practices/
Just returned from The Ritz Carlton in Los Angeles. Was hundreds more than the price quoted at booking. Same thing at St. Regis Bora Bora a couple months ago. Marriott is a criminal corporation. You have absolutely no idea what your final bill will be. Marriott was sued for similar practices not long ago. I am contacting that firm. Where the hell are our representatives? Fool me twice....
Hilton is rolling out a requirement for these so called panic devices as well. I haven't seen guests charged for it though. To answer how long it would take to pay off the system at the Marriott with the $10.72 fee...
The one we use at my hotel is called Relay. The units are $150/yr each. If you had 100 employees and a full hotel with 500 guest rooms charging even a $10 fee....it would...
Hilton is rolling out a requirement for these so called panic devices as well. I haven't seen guests charged for it though. To answer how long it would take to pay off the system at the Marriott with the $10.72 fee...
The one we use at my hotel is called Relay. The units are $150/yr each. If you had 100 employees and a full hotel with 500 guest rooms charging even a $10 fee....it would take 3 days to pay for the system for the year. The other 362 days of the year collecting that $10 would be all profit.
Just another crazy left-sided tax in corrupt messy cities,,,I bet you can buy lots of panic buttons for $4 million$$$$ In san fran Asian workers have a special app with an alarm to protect them.
Californians brought this on themselves by remaining silent when the same fees were added at restaurants over the last several years. Silence is price violence.
Those 2 hotels share a shuttle from LAX. I've long assumed they share an owner/management group.
Thanks Marriott LAX for making sure you are at the bottom of the list of hotels to consider.
It makes thing so much easier.
Sure it's the hotels fault the Dems have added another useless regulation that ends up being paid by the consumer
it says nowhere it is a regulated fee. Also those devices cost few dollars a piece and even worn the software and say 500 devices, you still end up paying less then $75,000. The fees is for perpetuity which will end up in tens of millions
you anti dem people don’t even try to comprehend before speaking
It's all BS. They don't want to absorb the fee so they pass it on. Glad I know. Won't be staying at any of those places.
There is a valid reason for this: Hotel room rates have stagnated at 2004 rates with no provision for cost of living increase. Hotel’s costs of operations have doubled.
Guests don’t understand the operating costs including increase in taxes. While you are all lamenting about these charges, think what would you say if the Hotel charged $20 extra. Guests CRIB & CRIB. They talk bad about the Hotel in the social media.
This way...
There is a valid reason for this: Hotel room rates have stagnated at 2004 rates with no provision for cost of living increase. Hotel’s costs of operations have doubled.
Guests don’t understand the operating costs including increase in taxes. While you are all lamenting about these charges, think what would you say if the Hotel charged $20 extra. Guests CRIB & CRIB. They talk bad about the Hotel in the social media.
This way the Hotel does not have to pay 18% commission to Expedia group of websites & Booking dot com group websites. And that is steep.
For all you commoners, for every $ that a hotel earns top 35 cents go to everyone including all guests who want some discount or other. They make only 65 cents on the dollar. Now figure how to survive.
Stop finding fault with the Hotels. Money actually & unfortunately does not grow on trees.
Stop finding fault with the Hotels? Maybe because there are faults?
A good start is stop making excuse for a bogus made up fee.
A panic button fee? How ridicule.
Raise the rates if you need. Don't bait and switch prices.
And I hope you are not a hotelier, because I can guarantee you will go out of business with this mindset.
"There is a valid reason for this: Hotel room rates have stagnated at 2004 rates with no provision for cost of living increase. Hotel’s costs of operations have doubled."
There is no such thing as "cost of living increase" for hotel rates. Hotels are (generally) free to raise or lower their room rates as supply and demand dictate.
Trying to use new regulations as an excuse to manufacture separate new (and permanent) fees is...
"There is a valid reason for this: Hotel room rates have stagnated at 2004 rates with no provision for cost of living increase. Hotel’s costs of operations have doubled."
There is no such thing as "cost of living increase" for hotel rates. Hotels are (generally) free to raise or lower their room rates as supply and demand dictate.
Trying to use new regulations as an excuse to manufacture separate new (and permanent) fees is a dishonest approach. As Ben noted, this fee will bring in millions of additional dollars per year for the hotel, which will likely exceed the additional costs of complying with the hotel worker protection ordinance. In other words, the hotel is trying to make more money while passing off the fee as a requirement.
Oops. you missed a NOT between a and valid.
It's a terrible hotel anyways, so I'd advise everyone to avoid it
Shame on Marriott….thi is an outrage….cancel my Ambassador membership….You loose Marriott….Glad you moronic greed paid off
Will not even tickle them the least bit...that's the level of Marriott now...they don't care about loyalty anymore
Just checked out of the Ritz-Carlton Los Angeles. Was charged over 200 more than my booking reservation for 3 days. Same thing at St Regis Bora bora 2 months ago - only much more. Marriott is a criminal corporation. I am contacting a lawyer. ENOUGH
Part of the reason I stopped traveling within USA. It's starting to be more expensive then traveling outside the USA. I live in Arizona.
1) I can dine in Mexico at a nice restaurant for a fraction of the cost in USA...same for Greece.
BTW, if anyone wants a name of a good steak restaurant, I have a recommendation for an Uruguayan style steak restaurant in Guadalajara Mexico. I kid you not!!! It...
Part of the reason I stopped traveling within USA. It's starting to be more expensive then traveling outside the USA. I live in Arizona.
1) I can dine in Mexico at a nice restaurant for a fraction of the cost in USA...same for Greece.
BTW, if anyone wants a name of a good steak restaurant, I have a recommendation for an Uruguayan style steak restaurant in Guadalajara Mexico. I kid you not!!! It is a fraction of the cost here in Arizona.
2) Hotels overseas are much cheaper also.
3) service overseas is also better.
Behaving ethically hurts profits, to the tune of $10.72 per night.
what is ethical about this...???
The ordinance addresses longstanding worker abuses in the hotel industry: failure to report crimes, quotas, mandatory OT, etc.
This is not just to try to hide the fee a little but also to try to make a political statement. I think the idea is to try to get consumers to object to laws like this by pretending the cost is actually $10 per night per room. It's a can-you-believe-what-government-is-costing-you move. From the hotel's perspective, it's pretty easy to modulate. The danger with doing this is that you go too high and you end...
This is not just to try to hide the fee a little but also to try to make a political statement. I think the idea is to try to get consumers to object to laws like this by pretending the cost is actually $10 per night per room. It's a can-you-believe-what-government-is-costing-you move. From the hotel's perspective, it's pretty easy to modulate. The danger with doing this is that you go too high and you end up pricing yourself out of selling a room you otherwise would have sold, but you can always adjust for that by dropping the room rate a few bucks.
Isn't the real game here to try to make the price look as artificially low as possible to price aggregators and OTAs, so that you show up higher on the list?
Hey Ben,
Oy vey!!
Do you know if the Chinese Communist Party linked real estate company, The Sichuan Xinglida Group Enterprises Co, still owns the LAX Marriott? Acquired in 2014.
In 2013, they acquired the Sheraton Gateway in LAX, and the Torrance Marriott South Bay.
Weighing minor fee + financial support of CCP. No brainer on where not to book.
Can you look into this to update your article?
I can't wait until cabin crews get their own panic button.
As a part of the Marriott New Employee Protection Surcharge, the additional revenue collected can be used to offset the cost of ammunition and gun purchases by employees. Furthermore, for every year of service, Marriott employees should receive 100 bonus bullets (500 bullets for Los Angeles employees) and a complimentary high-capacity magazine.
Additionally, after two years of Marriott service, employees can choose either a large-caliber grenade launcher or a semi-automatic shotgun to help keep...
As a part of the Marriott New Employee Protection Surcharge, the additional revenue collected can be used to offset the cost of ammunition and gun purchases by employees. Furthermore, for every year of service, Marriott employees should receive 100 bonus bullets (500 bullets for Los Angeles employees) and a complimentary high-capacity magazine.
Additionally, after two years of Marriott service, employees can choose either a large-caliber grenade launcher or a semi-automatic shotgun to help keep Marriott employees safer. The Marriott Employee Protection program is void where prohibited and for employees under 18 years old.
With most Marriott employees "packing heat," guests should feel much safer when they stay at Marriott International properties over Hilton, IHG, or Motel 6 hotels.
Just raise the rates and continue good service. Do not resort to chicanery. Seems unethical to me.
How many housekeeping tips are going to disappear because of frustration over fees like these? I already have a hard time tipping housekeeping staff when we very frequently don't get daily service any more, and in many cities, housekeepers are making far, far above what are considered tipped wages.
Hotels don’t run 100% occupancy (especially LAX). LAX average is about 72% YTD and last three years was under 40%. You should go open a hotel, Invest millions so you can try to understand the ever changing dynamics. Or It’s simple, don’t book that hotel, go stay at a holiday express. ♂️
Jay,
Your response sounds like you are a Marriott employee.
As a Titanium Elite, I think I may go look for a different brand if your attitude is what I can expect at Marriott.
I mean I don't want to support a business that values housekeeper safety as an afterthought. Human trafficking, sexual assault, etc all happen at hotels and if a hotel owner wants to cheap out on investing in security and panic buttons for housekeepers than that's a property I don't want to stay at.
@Zach B
It's not the property, it's the Mayor of LA.
So next time avoid LA, where the Ritz Carlton is just 2 mins walk from homeless tents.
To fund the Spanish-American War in the late 1800s, Congress imposed a tax on something only the wealthiest of Americans could afford at the time: telephones. Does it come as a surprise that after the war, the tax stayed? Roughly 100 years. So, when the hotel panic buttons are finally installed and those workers are no longer required, will the service fee be removed?
the taxes always stay they never get rescinded or end!!! Nuts to vote for any TAXES esp in Calif..
If a fee is mandatory then it should be folded into the advertised price. These deceptive pricing practices need to end and other countries have long used clear price legislation to ensure that what is on the price tag is what you pay. In the U.S. by contrast, it is not unusual to end up paying 25-30% more than what's on the sticker when you factor in sales taxes, other local taxes and mandatory hotel...
If a fee is mandatory then it should be folded into the advertised price. These deceptive pricing practices need to end and other countries have long used clear price legislation to ensure that what is on the price tag is what you pay. In the U.S. by contrast, it is not unusual to end up paying 25-30% more than what's on the sticker when you factor in sales taxes, other local taxes and mandatory hotel fees. If a hotel has extra costs such that they need to charge more, then charge more, raise your rates! I don't have a problem with letting the market work with pricing reflecting supply/demand/costs so long as it is transparent and clear so that a consumer can make their optimal choice efficiently.
Exactly, these fees that only show up at the last step of the booking process benefits absolutely no one except the dishonest hotel in question.
Consumers waste time looking at prices that are not reflective of real prices.
Honest hotels lose customers because their prices look less competitive.
Price comparison engines have a more difficult time offering an accurate comparison.
Nobody wins except the dishonest hotel.
I don't have any problem with hotels charging whatever fees they like. The issue is that the US still doesn't seem to have any laws on showing the final price to consumers, like in pretty much any other country in the world.
You shouldn't be able to get aways with advertising a rate of 100 USD when in fact there's no way someone could stay with you for that price.
Ryanair also charges all kinds...
I don't have any problem with hotels charging whatever fees they like. The issue is that the US still doesn't seem to have any laws on showing the final price to consumers, like in pretty much any other country in the world.
You shouldn't be able to get aways with advertising a rate of 100 USD when in fact there's no way someone could stay with you for that price.
Ryanair also charges all kinds of crap like 261 fee, etc, but any fee that is compulsory is always included in the price shown to customers.
A few years ago, I had booked a particular hotel in the Marriott network. The mandatory fees, charges, and taxes equaled about 65 percent of the underlying room rate. So, for every $100 of room rate throughout the stay, add $65. It so disgusted me that I canceled the stay and it soured me on that particular brand within the Marriott network. Of course, other experiences with Marriott properties as well as the erosion of benefits soured me on Marriott as a whole.
The US service industry has no transparency when it comes to prices charged. Nothing new, just another way to rip off the consumer.
Can you refuse to pay that at checkout?
Anyone staying there should file a complaint.
I recently cancelled what was planned to be a 2-night stay at a 5-star CA hotel. My reason was discovery of all the junk fees that were going to added. Examples: $25 a night for self parking. And $45 a night resort fee.
So they lose all of their revenue from me by playing these games.
Hotels should be forced to show the all-in cost upfront, including all taxes and fees. That happens in Europe, but not here.
Just another example of how California is absolutely, positively determined to destroy itself.
To relegate itself to economic irrelevance.
I obviously support hotel worker safety, but I highly doubt it costs $10 per guest per day to provide that safety.
#ForgettingCaliOneDumbAtATime
Surely California will miss you.
How is this a California issue and not a hotel management issue? The state has nothing to do with these ridiculous surcharges.
I don't care if California will miss me.
But I do miss maintaining my car rental record of 50% broken window returns in CA.
not nice!!!
Ben those are huge hotels . As a former hotel worker myself workers are required around the clock . Do you want to arrive at your LAX hotel after a flight delay or cancellation at 2AM to find out that there are no clean rooms ready at the moment ? Only one front desk agent on duty ? No security guard , no housekeeping etc. These hotels need 3 shifts to be filled 24 hours...
Ben those are huge hotels . As a former hotel worker myself workers are required around the clock . Do you want to arrive at your LAX hotel after a flight delay or cancellation at 2AM to find out that there are no clean rooms ready at the moment ? Only one front desk agent on duty ? No security guard , no housekeeping etc. These hotels need 3 shifts to be filled 24 hours a day by full time workers needed for 8 hour shifts. There is a labor shortage and ones like Marriott LAX and Renaissance LAX are struggling to fill positions . I would rather pay an employee fee than a “discovery fee” or “telephone newspaper fee “. At least they are being upfront about it. If Marriott LAX and Renaissance LAX were to shut down you’d be looking at $179 per night motels and $319 per night Sheratons in the LAX area.
Why don't they just raise their room rates if they need to provide such a fundamental service as, well, service?
Totally agree. They just need to raise their rates like everyone else is doing and not try to disguise it as something else. This is not a unique to LA or CA issue.
Agree with the others just raise the room rate if this is needed. I will say as hotels have shifted to more junk fees and less service/closed executive lounges I have shifted more to AirBnB it isn't perfect either but I have been happy so far.
None of you get this. California is being taken over by an awful, unethical labor union--Unite Here. They are forcing ridiculous wage and hour minimums on Hotels. The Panic button crap is so housekeepers will feel safe from sexual assault. Never you mind that the number of such instances is nil.
#Communism
I don't think it's unbundling, it rather a hidden price increase. But still, it is disgusting.
Whenever I see something like this, my response is to stay somewhere else - even if it costs more in total to do so.
Fortunately, unlike Ticketmaster, there is still enough competition in the lodging space that this nonsense is avoidable.
@Jim
Not if 600 room hotels in the LAX are were to start shutting down . Tack on inflation.
Then ADD IT TO THE BASE RATE.
These tack-on, non-optional "fees" look sketchier than an Italian restaurant that never seems to have any customers.
Then let them close. Something else will open to fill the vacuum.