Question 1

What is the primary purpose of a resort fee?

Accepted Answer

From a hotel's perspective, resort fees serve two main purposes. First, they create an additional, predictable revenue stream separate from the room rate. Second, they allow hotels to advertise a lower base room rate on online travel agencies (OTAs) and other channels, making them appear more competitive on price.

Question 2

Are resort fees legal?

Accepted Answer

Resort fees are legal in most places, provided they are mandatory and disclosed to the customer at some point before the final purchase. However, there is growing pressure from consumer groups and government bodies for greater transparency, demanding that these fees be included in the upfront advertised price.

Question 3

How do resort fees impact guest satisfaction?

Accepted Answer

The impact depends heavily on transparency and value. If a guest is surprised by the fee at check-in or feels the amenities provided do not justify the cost, it can lead to negative reviews and lower satisfaction. When the fee and the amenities it covers are clearly communicated from the start, the negative impact is often reduced.

Question 4

Should I include all amenities in the resort fee?

Accepted Answer

It's a strategic decision. The fee should cover amenities that are broadly used and valued by your target guests. Bundling genuinely useful services can increase the perceived value. However, charging for basic expectations like Wi-Fi can sometimes be seen negatively. Some hotels find success by offering a tiered system or making some high-value amenities à la carte.

Question 5

What's the difference between a resort fee and a tax?

Accepted Answer

Taxes are government-mandated charges (like occupancy tax or sales tax) that hotels collect on behalf of a city, state, or country. A resort fee is a charge kept entirely by the hotel itself. This is a key distinction, as the hotel has full control over whether to charge a resort fee and how much it is.

Resort Fee Impact Calculator

Results

Understanding Resort Fees

Frequently Asked Questions

Need Help Optimizing Your Hospitality Business?