One of the most annoying expenses among travelers is hotel fees. This is the additional amount a hotel charges you to stay at the property over the room rate. The concept of resort fees started in the 1990s at high-end resorts, primarily in destinations like Las Vegas and Hawaii. Initially, these fees were introduced to bundle amenities like pool access, beach towels, gym use, and parking into a single mandatory charge. Hotels marketed these fees as a convenience, offering value by covering services that would otherwise be charged à la carte.
The next step was the introduction of destination fees. These began appearing at city hotels—not just resorts—and covered items like Wi-Fi, bottled water, and newspapers. By the 2010s, destination fees were no longer limited to high-end properties; even budget and airport hotels started introducing similar fees. City hotels, especially in places like New York City and Chicago, began charging “destination fees” for dubious amenities like local discounts or “complimentary” drinks.
Now that these fees are seemingly everywhere, customers almost universally despise them. This even holds true for those who use hotel points to pay for stays, as World of Hyatt is the only chain that waives these fees for award nights at most properties.
Why Do Hotels Charge These Fees?
Because They Can
This is the simplest answer to the question. In fact, we’ve written an entire post about this topic: Why Hotels Charge Resort Fees & How to (Maybe) Not Have to Pay Them.
However, there are more specific reasons why these fees have caught on:
To Avoid Paying Commissions
Most hotels pay a commission when a room is booked through an external site. For instance, when you use platforms like Hotels.com, Expedia, or Capital One Travel, these companies receive a percentage of the room rate as a commission. Resort fees, however, are not included in the room rate calculation, allowing hotels to keep 100% of the fee revenue.
To Look Competitive on Search
Resort fees allow properties to advertise lower base rates while still collecting additional revenue. By separating the fee from the room rate, hotels can appear more competitive on booking platforms, where travelers often compare prices. Even on their own websites, hotels frequently display only the base rate, excluding taxes and fees, unless users select an option to view the full price.
As a result, travelers often only see the total cost when they reach the final reservation page, which can lead to frustration and feelings of being misled.
Why Travelers Dislike Resort Fees
Hotel resort fees are a constant source of frustration for travelers, and it’s easy to see why. They’re frequently criticized for being:
Mandatory
These fees are often charged regardless of whether the guest uses the amenities. For example, during a recent stay at the Moxy Times Square in Manhattan, we were charged a $30 destination fee, plus tax. Here’s what it included:
- $30 Daily F&B Credit
- (2) Guided Tours of the Garment District, including visits to historic manufacturing plants
- Polaroid Camera Rental with 10 photos (pink camera) — which could be used for the guided tour or around the hotel/town
- (2) Daily Fitness Classes at Crunch Fitness
- Daily Enhanced Wi-Fi, with additional benefits for Gold+ Marriott Bonvoy members
While some guests may enjoy these benefits, the reality is that most won’t fully utilize them. For example, Marriott Bonvoy Gold Elite and above members already receive Enhanced Wi-Fi as a benefit, making the extra charge somewhat redundant for those members. It’s clear that not all guests will get the full value out of the amenities bundled with the fee.
Opaque
Resort fees are often not disclosed upfront during booking, leaving guests with “surprise charges” at check-in or check-out. For instance, if you book a prepaid rate for your stay, you might not know about the additional $30 daily fee until you check out. That $30 isn’t always included in the quoted price, and it can feel like an unpleasant surprise when it appears on your final bill.
Inconsistent
The services covered by resort fees can vary widely between properties, leading to customer confusion. For example, compared to the Moxy Times Square, the resort fee at the Grand Hyatt Kauai is a steep $55 per night, but it includes a broad range of amenities:
- Health & Wellness:
- Access to the Anara Spa Fitness Center and Fitness & Yoga Classes (ages 14+)
- Guided Sunrise Walk
- Recreational Bicycle Use (see valet for availability)
- One Hour of Tennis or Pickleball Court Time daily (equipment rental available)
- Culture & Activities:
- Access to the Hawaiian Cultural Center, including activities like lei making, ukulele lessons, and hula dancing
- Koi Fish Feeding and Parrot Talk
- Hydroponic Garden Tours (twice a week)
- Nightly Entertainment at Seaview Terrace
- $20 Discount on green fees at Poipu Bay Golf Course, plus shuttle service
- Recreation & Convenience:
- Self-Parking
- Self-Service Laundry (washer, dryer, and detergent)
- Reusable Logo Tote Bag and Water Bottles per stay
- Sunscreen & After-Sun Lotion at the pool desk
- Beach Chairs & Umbrellas for beach use
- Arrival/Departure Lounge (with lounge area, showers, and computers)
- Kids 5 & Under Eat Free at Ilima Terrace breakfast buffet
The Future of Resort Fees
While resort fees remain a common practice in the United States, they are not universally accepted. In Europe, for example, these fees are generally prohibited, as many countries have regulations requiring that all mandatory charges be included in the upfront price. This highlights a growing movement toward transparency in hotel pricing.
Moreover, there are signs that change could be on the horizon in the U.S. Recent efforts by the Federal Trade Commission have focused on curbing “junk fees,” including resort fees. While they do not ban hotels from charging these fees, the new rule requires that businesses advertising their pricing disclose the full cost upfront, including all fees.
No matter how much we hate these fees, the incentives to keep them in place motivate hotels to continue charging them. Having these costs spelled out upfront will allow guests to compare prices more easily between properties. This competitive pressure might be the only thing that drives hotels to limit how many additional charges they add to the bill.
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