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© 2024 Obsidian All rights reserved.
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© 2024 Obsidian All rights reserved.
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Insights

Sep 11, 2024

Destination charges. Administrative fees. Water excise taxes.

barbara-scofidio

Barbara Scofidio

Editor at Skift Meetings

If there’s a topic that annoys meeting planners more than any other, it’s the many hidden fees they face – for the use of everything from the pool to the parking lot – with each hotel being different from the next.

Bills-and-coins-on-a-table-next-to-a-red-purse-and-a-plant
Bills-and-coins-on-a-table-next-to-a-red-purse-and-a-plant
Bills-and-coins-on-a-table-next-to-a-red-purse-and-a-plant

What Are the Most-Hated Fees?

Skift Meetings reached out to planners to share what they consider to be the most egregious hotel fees, along with others that are annoying but potentially negotiable.

AV Fees

Exclusive in-house AV services have left many planners in a tight spot. “I’m paying $3,500 for a TV and power drop for 8 people for a two-day meeting in May,” said Amanda Corley, owner of The Curated Concierge. For these prices, I can buy a projector and 2024 screens, fly out my college kid to run it and have money left over. The AV racket is next-leveI.”

Destination Fees

This is the urban version of the resort fee, with reports of an additional $10-$25/night. One hotel’s “All Access Pass” consists of access to the business center, Wi-Fi, bottled water, the in-room fridge/microwave and lobby bicycles – all of which (except the Wi-Fi) used to be free.

F&B Service Charges

Scepkowski found these fees buried in 8-point type at the bottom of the last page of a menu from an airport hotel: a 17% gratuity, 12% taxable administrative fee, 7% tax and 8% event fee. “That’s three different ways to say ‘service charge,’” she said. “And it’s taxable at 7%.”

What Are the Most-Hated Fees?

Skift Meetings reached out to planners to share what they consider to be the most egregious hotel fees, along with others that are annoying but potentially negotiable.

AV Fees

Exclusive in-house AV services have left many planners in a tight spot. “I’m paying $3,500 for a TV and power drop for 8 people for a two-day meeting in May,” said Amanda Corley, owner of The Curated Concierge. For these prices, I can buy a projector and 2024 screens, fly out my college kid to run it and have money left over. The AV racket is next-leveI.”

Destination Fees

This is the urban version of the resort fee, with reports of an additional $10-$25/night. One hotel’s “All Access Pass” consists of access to the business center, Wi-Fi, bottled water, the in-room fridge/microwave and lobby bicycles – all of which (except the Wi-Fi) used to be free.

F&B Service Charges

Scepkowski found these fees buried in 8-point type at the bottom of the last page of a menu from an airport hotel: a 17% gratuity, 12% taxable administrative fee, 7% tax and 8% event fee. “That’s three different ways to say ‘service charge,’” she said. “And it’s taxable at 7%.”

What Are the Most-Hated Fees?

Skift Meetings reached out to planners to share what they consider to be the most egregious hotel fees, along with others that are annoying but potentially negotiable.

AV Fees

Exclusive in-house AV services have left many planners in a tight spot. “I’m paying $3,500 for a TV and power drop for 8 people for a two-day meeting in May,” said Amanda Corley, owner of The Curated Concierge. For these prices, I can buy a projector and 2024 screens, fly out my college kid to run it and have money left over. The AV racket is next-leveI.”

Destination Fees

This is the urban version of the resort fee, with reports of an additional $10-$25/night. One hotel’s “All Access Pass” consists of access to the business center, Wi-Fi, bottled water, the in-room fridge/microwave and lobby bicycles – all of which (except the Wi-Fi) used to be free.

F&B Service Charges

Scepkowski found these fees buried in 8-point type at the bottom of the last page of a menu from an airport hotel: a 17% gratuity, 12% taxable administrative fee, 7% tax and 8% event fee. “That’s three different ways to say ‘service charge,’” she said. “And it’s taxable at 7%.”

Hotel fees can add 30 to 40% to a meeting budget.

Quote

“All of these clauses are put into contracts in the hope of going unnoticed or misinterpreted,” said Bonni Scepkowski, president/chief strategy officer at Stellar Meetings and Events. “Your bottom line can be decimated in the neighborhood of 30 to 40% or more.”

Parking Fees

According to ResortFeeChecker.com, the average hotel parking fee has climbed to $44 a night. Planners face the challenge of many hotels outsourcing ancillary functions like parking to outside vendors. This arrangement leaves little to no room for negotiation.

Setup Fees

Gone are the days when each place setting came with water, hard candies, a notebook and pen, and maybe even a small decoration in the center of the table. “Once, we faced a room setup fee along with a per-person charge just for placing notebooks at each setting,” said Nandita Mohile, senior events director at Oliver Wyman. “So we opted to keep the notebooks at the back of the room to avoid that expense.” Carly Brecka, program manager at Fox World Travel, received a $500 vendor fee from the hotel for renting out its own napkins and décor.

Surprise Taxes

Local taxes, like the Cape Cod and Islands Water Protection Fund in Massachusetts, can also catch planners off guard. This excise tax of 2.75% funds projects that improve water quality and wastewater infrastructure on the Cape, Martha’s Vineyard and Nantucket – and it will be on your next bill.

Potentially Negotiable Fees

Many other fees can be annoying but are often negotiable if planners include a clause at the contract stage. Among these are keying fees for the meeting office or storage room, early check-in and late check-out fees, room drop fees, letter distribution fees at check-in, and credit card processing fees.