If you’re a hotelier, should you be more concerned about making money from charging fees or a potential consumer backlash?
That’s a question hoteliers may want to ask themselves this year, especially as the Federal Trade Commission (FTC) scrutinizes hotel fees.
This year is set to be another record year for U.S. hotels in terms of the amount of money they will collect from fees and surcharges. Last year saw a record of $2.45 billion and in 2016 U.S. hotels are on track to collect $2.55 billion according to a new report from Bjorn Hanson, a clinical professor with NYU’s Jonathan M. Tisch Center for Hospitality and Tourism.
Fees and surcharges collected by the U.S. lodging industry have increased every year except for 2002 and 2009 when demand dropped.
These fees can mean much greater profitability for hotels that implement them.