Resort Fees: Where's The Value?

Resort fees are a hot topic in the lodging industry.

Ask virtually any hotel charging a resort fee, and the answer is typically some variation of “We bundle popular amenities into a single fee based on feedback from our guests.”

With that in mind, when was the last time you heard anybody rave about the value of a resort fee?

Resort fees are popular among hotel and resort operators in the U.S. The fees have become virtually standard at properties in Hawai‘i, California, Florida, Las Vegas and even New York City. Typically added to final bills as a per-night charge plus local taxes, the fees generally cover a range of amenities from WiFi to in-room coffee makers, daily newspapers, telephone calls, incoming faxes or fitness center use.

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The American Hotel & Lodging Association, the trade group representing the U.S. hospitality industry, points to data showing that 80 percent of hotel consumers are willing to pay mandatory resort fees if the amenities are worth it.

Other consumer research tells a different story. A 2018 survey by Atmosphere Research found that 91 percent of respondents expressed dislike about resort fees.

Conventional wisdom says that guests who oppose the practice of charging resort fees can simply choose accommodations where resort fees aren’t charged, but that can prove difficult. Guests booking accommodations on Waikiki Beach, for example, have only two resort fee-free options: the condominium hotel Castle Waikiki Shore, which charges other industry standard fees for condo rentals, and the ultra-luxe Halekulani, where rates start around $550 per night.

Every other hotel charges nightly resort fees, up to $40 per night plus tax.

And honestly, there’s not really a substitute for gorgeous properties like the Royal Hawaiian. If that’s where I want to stay, I’ll pay the rate, whether it’s broken into a base rate and a fee, or whether the base rate is inclusive of all the amenities.

But what about guests who aren’t as dedicated to a specific property and want to comparison shop? How onerous is it to value the difference between two hotels charging the same resort fee, but one of the fees “includes” WiFi and an in-room coffee maker, and the other doesn’t, but those amenities are considered standard?

Another question is one of consistency. WiFi and coffee makers are standard at brands across the globe, so why are they included as part of a mandatory fee at those same brands in Waikiki? Would the hotel really be charging for those items a la carte in absence of a resort fee, or would they simply raise rates to compensate?

On the flip side, let’s look at examples of resorts that don’t charge resort fees.

At Halekulani, many amenities that other properties might say are included in the resort fee are included in the room rate: WiFi, pool amenities, fitness center access, surf demonstrations and the "For You, Everything" program which includes admission to top Honolulu attractions. At that point, it’s really a matter of buyer psychology: the total rate may end up being comparable to a property charging a resort fee, but it’s important that the included amenities have enough value to justify the price of the fee.

I would agree with AHLA’s findings that resort fees have value if the amenities are valuable. In so many cases, however, many of the inclusions are of questionable or downright ludicrous value to guests—either because they're a standard free amenity at non-resort properties, aren't in demand as a paid extra or are in some cases, blatant sales pitches disguised as value-added amenities.

While resort fees can be valuable if done well, I've compiled a list of my bigger resort fee pet peeves I wish resorts and hotels would cut out.

Transparency

While most hotels are upfront about the resort fee and their inclusions, I’ve seen a troubling increase in the number of hotels that have made it difficult to find an itemized list of the fee’s inclusions. In one particularly egregious example, I was told the list of inclusions would be given out at check-in.

Consumers should not accept resort fees without knowing exactly what they’re getting for their money, and a hotel should provide this information—clearly—before a booking can be completed, particularly for prepaid rates and rates with restrictive cancellation policies.

Consistent Daily Value

Another major concern is resort fee inclusions that do not match the frequency of the fee. Some hotels like to throw in gifts or amenities like souvenir tote bags or coupon books once per stay, and then include the amenities in the per night resort fee.

That’s nice and everything, but it dilutes the value of the fee for longer stays. The same goes for activities that are only available on specific days of the week. To be included in a daily resort fee, it's not unreasonable to expect the value to be provided—well—daily.

Basic Services

There are some amenities that should be available to guests purely by merit of their patronage, like access to the lobby, pool or other public spaces. Ditto the services of room attendants, porters and door attendants (unless the resort fee is paid out to these hardworking employees as a gratuity, but this isn’t a common practice).

Put bluntly, if it’s overhead—it should be included in the room rate.

"Complimentary" Fee Inclusions

WiFi isn't "free" if it's included as part of a mandatory resort fee. The same goes for any other fee inclusions described as "free" or "complimentary." Resort fee amenities aren't free; they're prepaid.

The same goes for brands that include items that are normally free as a loyalty program benefit in their resort fees. I know of at least one brand that offers free WiFi for loyalty program members, but specifically carves out properties that charge resort fees.

How To Comparison Shop

Resort fees certainly make comparison shopping more complicated. Per-night rates will vary when combined with varying resort fee amounts along with different fee inclusions. When shopping, guests should compare the total price for all nights including taxes and resort fees, considering the real value provided within the resort fee structure.

It's also helpful to share feedback with hotel owners about the value or lack of value provided by their resort fees. Hotels may tailor future inclusions based on guest feedback. When choosing a property that does not levy a resort fee, it's also helpful to share that the lack of a resort fee drove your purchase decision.

The author recognizes the importance of Hawaiian language diacritical marks such as the kahako (macron), although some of these may have been omitted for web browser compatibility.