Following the 2013 record of $2.1 billion, total fees and surcharges collected by U.S. hotels are set to increase to another record level of $2.25 billion in 2014. The study was completed by Bjorn Hanson, clinical professor with the NYU School of Professional Studies Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management.
The increase for 2014 reflects a combination of approximately 3.5 percent more occupied hotel rooms than in 2013, additional fees and surcharges, and higher amounts charged at many hotels for a total increase of approximately 6 percent.
Fees and surcharges emerged as a common industry practice in 1997, with the introduction of fees and surcharges for energy beginning in 2000.
Examples of these charges include: resort or amenity fees, early departure fees, early reservation cancellation fees, internet fees, telephone call surcharges, business center fees (including charges for receiving faxes and sending/receiving overnight packages), room service delivery surcharges, minibar restocking fees, charges for in-room safes, automatic gratuities and surcharges, and baggage holding fees for guests leaving luggage with bell staff after checking out of a hotel but before departure, and charges for unattended parking. For groups, there have been increased charges for bartenders and other staff at events, special charges for set-up and breakdown of meeting rooms, and fees for master folio billing.
U.S. lodging industry fees and surcharges have increased every year except for brief periods in 2001 and 2008 when lodging demand declined. Fees and surcharges are highly profitable; most have incremental profitability of 80 to 90 percent or more of the amounts collected.
