Industry Update
External Article 2 November 2018

Hotel Fees Hit Record High, Generating $2.93 Billion in 2018

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Hotels in the United States will generate a record $2.93 billion in 2018 in daily, mandatory hotel fees, according to a new report from Bjorn Hanson, an adjunct professor at the New York University School of Professional Studies Jonathan M. Tisch Center for Hospitality and Tourism.

The total represents an 8.5 percent increase from 2017, and charges are expected to continue to rise in 2019 as hotels try to combat increasing payroll and real estate costs.

"The increase for 2018 reflects a combination of approximately 2.5 percent more occupied hotel rooms than in 2017, and 6 percent more fee and surcharge categories and higher amounts," he told the New York Times.

About two years ago, urban luxury and full-service hotels across the U.S. began adopting the fees, which allows them to keep room rates low and aren't typically commissionable for travel agents. The fees, which are normally somewhere around $25 but can range up to $40, have typically been associated with gyms or pools at hotels. However, they are now more often charged for regular amenities like bottled water, breakfast, and newspapers, according to Hanson.

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