Jumping on the Fee Bandwagon

It is no secret that air lines, in an effort to keep the cost of flights low, began adding a-la-carte fees to previously free services. Want to bring luggage to your destination? That’s an extra $25.00. Want a seat someone larger than midget stature can fit in? Well, that could be an extra $100.00 each way – depending on your distance. Want something to eat or drink on your flight? That is an extra $6.00 for the beer and who knows how much they will price-gauge you for the bag of chips or sub-par sandwich. There is almost no service most of the regional air lines won’t give you for an additional price including a day in their red-carpet lounge. While this has become common practice for air lines, it appears that hotels are trying to jump on this a-la-carte fee bandwagon. Does this mean it is good for business, probably not!
According to the Wall Street Journal, there have been reports of hotels adding surcharges for safes in room, minibar restocking fees, baggage holding fees for guests leaving luggage with bell staff after checking out, and a “tray charge” on room-service bills on top of a service charge and an automatic gratuity. Facility use? Shouldn’t the pool and the fitness center be included in the price of the hotel room? Imagine showing up to a hotel to find out the room rate you negotiated does not include the safe in the room, or the TV they provided, and they are charging you $5.00 a day for toilet access. Even worse, you don’t find most of this out until check out.
The main reason this is a bad idea for hotels is because adding a-la-carte fees for services people may not want, or use, to begin with is a sure-fire way to lose customers. The airlines have a completely different business model that allows them to charge additional fees based on right-of-use. If you don’t want luggage handlers, who could possible lose your luggage, food or drinks on the plane or don’t mind sitting in a seat with less leg-room you have every right to opt-out of these services. However, providing you a service or amenity and then later coming to you with a hefty bill for it is certainly no way to win repeat business – particularly in a recession and especially when charging for services or amenities that guests may not have even taken advantage of.
I think businesses of all-types should be up front about costs. Don’t get me in the door by offering me a room at one price and then add a plethora of fees for things regardless if I use them or not. If I want to add in a massage, that’s fine, but don’t charge me $5.00 at check-out because the hotel decided to install safes, mini-fridges or TV’s in all the rooms. What do you think about hotels adding on hidden fees to their offered room rate?
This entry was posted on Tuesday, November 3rd, 2009 at 5:58 pm and is filed under Airlines, Economy, Events, Hotels, North America, Tourism, Travel, Where in the World. You can follow any responses to this entry through the RSS 2.0. You can leave a response, or trackback from your own site.
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November 4th, 2009 at 2:44 pm
[...] This post was mentioned on Twitter by OGILVY, ogilvy & mather. ogilvy & mather said: Jumping on the Fee Bandwagon: It is no secret that air lines, in an effort to keep the cost of flights low, beg.. http://bit.ly/5LsOP [...]