The Andaz Maui at Wailea Resort, a 15-acre beachfront Hyatt resort in Hawaii, is far from a place to sleep. There are several pools, including a lagoon and three infinity pools. As part of the resort fee, you can also take a stand-up paddleboarding lesson, use the resort’s snorkel gear and GoPro action camera, and maybe even learn the ukulele, hula, or mixology.
Everything is marketed as free – but that’s only sort of. Andaz Maui is among what the American Hotel and Lodging Association estimates at 6% of all hotels that charge resort fees. These fees range between $20 and $50 per night – and they have become one of the most controversial issues in the travel industry.
NerdWallet analyzed over 100 US hotels with January 2023 check-in dates as part of its 2023 Best-Of Awards to see which hotels have the best and worst fees. Among the hotels that charge them, the average resort fee was $42.41, which is almost 11% of the overall cost per night. The Andaz Maui’s daily resort fee is $50 plus tax, which is above average. But because Andaz Maui’s nightly rates are also above average, the fee is about 6% of the overall cost per night for a stay in January 2023, based on data collected in December 2022.
And like most other resorts that charge such fees, the Andaz fee is not optional, even if you never use the amenities.
THE CASE OF VILLAGE FEES
Resort fees can be a way for hotels to increase their profits without necessarily charging guests more.
“Hotels say resort fees allow hotels to reduce commissions paid to online travel agents,” according to the Federal Trade Commission’s 2017 report.
Most resorts pay travel agents a commission based on the nightly rate rather than the overall cost. A lower nightly rate plus the resort fee reduces what the resort has to pay to the referrer.
Some resorts go out of their way for amenities, which makes resort fees more justifiable. Hyatt’s Alila Napa Valley in Northern California wine country charges a fee of $55 per night plus tax, which includes wine, valet parking, and use of bicycles and charging stations for electric vehicles. The $50 fee for the Ritz-Carlton Bacara, Santa Barbara in California covers amenities, including yoga and water aerobics classes, electric bike rentals, guided beach rides and use of the tennis courts. tennis.
Brittain Komoda, marketing manager at Andaz Maui, says cost-sharing could encourage vacationers to learn about the amenities offered and actually use them.
“We have cultural activities, water activities, GoPro rentals and other courses,” says Komoda. “We want customers to experience it and know what it costs.”
It’s possible that a tourist who would otherwise never pay separately to ride an outrigger canoe does so because it’s included in the resort fee they paid, Komoda says. This activity could become the highlight of their vacation, leaving them with a more favorable memory of the resort.
And buying even a fraction of what Andaz Maui offers a la carte would likely be far more than the $50 daily resort fee — which is charged per room, not per person, Komoda says. For example, renting a GoPro from a surf shop in Wailea costs about $40 per day, and renting a full-face snorkel mask costs $17 per person. Stand-up paddle lessons in Maui cost between $150 and $180 per adult.
“Our intention is to welcome new and returning travelers with immersive experiences that total far more than our resort fees,” says Komoda.
ADVOCACY AGAINST VILLAGE FEES
But some hotels may charge a resort fee that covers basic amenities, like Wi-Fi or in-room phone use.
For travelers booking expensive rooms, mandatory additional fees to cover perks advertised as “free” can seem stingy and confusing. In 2012, the FTC warned 22 hotels that resort fees were not properly disclosed on their reservation websites.
Transparency of resort fees has improved. In November 2021, Marriott committed to displaying the full price — including room rates and other mandatory fees — on the front page of its booking site.
But at other resorts that separate fees from room rates, it can be difficult to figure out the total cost.
“If resort fees were included in the price of the room, consumers could compare rooms at different hotels simply by looking at room pages on hotel websites,” according to a 2017 FTC report. resort fee disclosed separately, consumers should add the room rate to the resort fee and remember the total for each hotel under consideration.”
Dave Betham, general manager of the Courtyard Oahu North Shore in Hawaii, says that’s why his property – which offers free amenities and cultural activities including ukulele and hula lessons – won’t charge a fee. resort.
“We look at it from the customers’ perspective,” says Betham. “We like the idea that there are no surprises.”
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This article was provided to The Associated Press by personal finance website NerdWallet. Sally French is a writer at NerdWallet. Email: [email protected].
RELATED LINK:
NerdWallet: How to avoid hotel resort fees (and which brands are the worst) https://bit.ly/nerdwallet-hotel-resort-fees