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Hotels have gotten sneaky with resort fees.
They're tacked on to the advertised rate, hidden in the "taxes and fees" section at the end of the booking process. A few hotels don't disclose them until guests check-in.
One hotel didn't reveal its resort fees to me until check-out. The fees were ultimately taken off my bill, but not without first having to argue the point with the manager.
Hidden fees catch guests off-guard, but hotel associates are also victimized. They didn't create the policy, yet they must defend them to frustrated guests.
It's an awkward position to be in.
How hotel fees hurt the guest experience
My wife, Sally, and I looked forward to spending a few relaxing days at one of our favorite places to stay, the Olea Hotel in California's Sonoma Valley.
The hotel offers a number of amenities, including a complimentary gourmet breakfast each morning. The hotel's website clearly mentions the breakfast is included with each stay.
I was booking our room when I noticed a curious line item labeled "Extras" on the list of charges. You had to expand the line item to reveal a $50 resort fee had been tacked on ($25 per night).
The same resort fee was also confusingly listed as an optional item, yet it couldn’t be removed.
Notice the complimentary breakfast is listed as one of the amenities included with the fee. Surprised, I called the hotel for an explanation.
Savannah answered and identified herself as a manager. She explained the resort fee was mandatory and covered several items, including that complimentary breakfast.
How can a fee labeled “extra” and as an “option” be mandatory?!
She refused to waive the fee, even after I pointed out the multiple places on the website advertising a complimentary breakfast.
Finally, Savannah admitted she wasn't allowed to make the change. "You'll have to contact the owner about that," she said.
We ultimately booked our stay at another hotel.
These hidden fees feel like a scam, so it's no wonder that hotels go to great pains to hide them in places they hope guests won't notice. Even when the resort fee is disclosed, it's often difficult to learn what's included.
Marriott Hotels routinely charge resort fees, but you'll have to contact the hotel directly to learn what you get for the mandatory charge. The list is often laughable.
One property offered the following for a required $30 per night fee:
Free WiFi (I already get that as a frequent guest)
A re-usable water bottle (I have one and don't need another)
Yoga classes
Another Marriott property threw in a $10 box of candy to "sweeten" the deal.
Even worse, the front desk associates were not empowered to waive the resort fees, even when it became clear the included amenities offered me zero value.
I was able to get a manager to waive the fee at both hotels, which makes me wonder why the front desk associates weren’t empowered to do it themselves. Both made it clear they weren’t allowed.
Why do hotels charge resort fees?
Erica Lamberg explained the rational in an article for USA Today. "Resort fees make it harder to compare costs between hotels."
Indeed, Ashish Patel, the owner of the Olea Hotel echoed this rationale in his explanation for the mandatory fee.
"Personally, I don’t like property fees," Patel wrote in an email. "The hotels around us implemented a property fee which allowed them to drop prices under us but make up for it with the property fee. Therefore we lose business to them."
Ironically, it was Patel's hidden fee that drove my business to a competitor.
Hospitality consultant, Donald Bowman, pointed to third-party booking sites as a primary driver. "The reason hotels and resorts are using them is so that they do remain visibly competitive through third-party booking sites like Expedia or Booking.com where your comparisons are just on the room rate, not with Resort Fee included."
This might explain why resort fees are commonplace in some markets, yet rarely charged in others.
Derrick Ricca, a senior sales manager at the Radisson Plaza Hotel at Kalamazoo Center, explained his property doesn't charge resort fees because they aren't necessary. "In our market in our comp set there are no resort fees."
This is a relief for Ricca, who would rather not charge them. "I am just like the general public, I am not a fan of resort fees."
How are employees affected by hidden fees?
Resort fees wedge frontline employees between a boss who insists they defend the fees and irritated guests who don't want to pay them.
An entire chapter is devoted to this topic in my book Getting Service Right, where I labeled it the "double agent problem."
On one hand, the employee is an agent for the hotel owner, who insists upon charging the fees. That makes it the employee's job to explain the fees, and defend them if necessary.
Most employees tell me they are not allowed to waive them or they don't have the necessary access in the hotel's billing system.
On the other hand, the employee is an agent for the customer. It’s their job to help create a terrific experience. They're responsible for welcoming guests, checking them in, and explaining the hotel's amenities.
Resort fees can quickly turn a friendly conversation into a sour one.
Hotel associates often confide in me that they privately resent having to absorb guest ire for an obviously deceptive practice they have absolutely no control over.
What should hotels do instead?
The simplest solution is to eliminate the fees.
There are many other ways to keep room rates competitive and still increase revenue. The most obvious is to offer a such a great experience that guests will keep coming back.
Sally and I were repeat guests at the Olea Hotel and were planning yet another visit until we were hit with the surprise fees.
Another tactic is to offer optional add-ons, such as a breakfast package. This adds transparency for the guest and can showcase the value the additional fee provides. It also allows guests who don't need the add-on to avoid the fee.
In some cases, the fees are mandated by the hotel owner and managers have no control over them. If that's your situation, it's important to give your associates some tools to better serve guests.
Donald Bowman has several helpful suggestions:
Make sure associates know the value of everything included in the fee.
Give the team collateral that helps explain the fee.
Empower associates to waive all or part of the fee when warranted.
For example, some hotels include parking in the resort fees. Bowman suggests allowing associates to credit a portion of the fee back to guests who didn't bring a car.
Conclusion
Resort fees and other hidden charges make employees become double-agents. They must enforce an unfriendly policy that annoys guests or annoy their boss if they waive the fee to make the guest happy.
Don't put employees in that position.
A better approach is to make it was easy as possible for employees to create great customer experiences.