Hotels Charging Fees and Surcharges for Just About Anything
PwC Forecasting 7% Increase for U.S. Lodging Industry in 2006
NEW YORK, NY, March 20, 2006. PricewaterhouseCoopers (PwC) forecasts that the U.S. lodging industry will generate $1.6 billion in fees and surcharges in 2006, a 7 percent increase over the $1.4 billion generated in 2005.
PwC forecasts that about half of the increase will result from a 3.1 percent increase in occupied rooms in 2006. The remaining percentage of the increase will result from the increase in the number of hotels charging fees and surcharges, the increasing range of fees and surcharges and the increased amounts charged. This will be the lowest rate of increase since 2002, indicating that the number of hotels charging fees and surcharges and the amounts charged is stabilizing.
The following is a list of fees and surcharges anticipated for 2006:
Mini-bar restocking charges
In-room safe surcharges
Room set / re-set charges
Yield management used for meeting rooms
Energy surcharges
Bartender charges ($125 + fee, gratuity & tax)
Baggage holding fees
Meet / eat fees
Cancellation fees
Early departure and arrival charges ($50)
Master folio billing fees ($50-$1000+)
Internet surcharges ($9.95/day)
Telephone call surcharges
Increased fax charges ($1-$5/pg)
Handling charges for overnight packages
Room service delivery fee ($2.50 + 15-17.5% gratuity)
Automatic gratuities / surcharges for housekeepers, bellmen and doormen
Resort amenities fees
Group charges: earlier room block guarantee date requirements
"The U.S. lodging industry has invested record amounts in facility and service enhancements and realizes that many travelers and travel influencers are very rate sensitive," said Bjorn Hanson, Ph.D. and partner in PricewaterhouseCoopers Hospitality and Leisure practice. "Fees and surcharges are not included in the room rate and therefore are exempt from occupancy taxes," he adds.
About PricewaterhouseCoopers
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries work collaboratively using connected thinking to develop fresh perspectives and practical advice. "PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity