THE BULLETIN
Junk in the trunk
D
on ’ t mess with President Biden ’ s vacation . Especially when it comes to the booking process . He made that clear back in February during his State of the Union address , when he addressed something nobody likes , even the leader of the free world : the so-named “ junk fees .”
What is a junk fee ? Just like it sounds , those hidden or obscure charges that show up on your bill , ranging from resort amenities to seat selection on a plane . And they typically creep in at the end of the booking transaction , swelling the bill multiple times to what you expected to be paying . Quickly , your budget bursts and you have to start your travel search over .
These fees became more prevalent during and after the pandemic , ostensibly to cover rising costs , from labor to costs of goods . According to Consumer Reports , hotel-related junk fees cost travelers roughly $ 3 billion a year .
Consider a destination amenity fee , a purposefully general term that can cover things like pool towel allotment , WiFi or gym use — things you thought were gratis and part of the room rate . Think again .
Now , many , like Biden , are calling them out . In July , Sen . Amy Klobuchar ( D-Minn .) and Sen . Jerry Moran ( R-Kan .) introduced the bipartisan Hotel Fees Transparency Act , which would establish federal guidelines for upfront , pricing transparency . Klobuchar even took to Instagram video , ending it with : “ So your vacation is full of unexpected joy and not unexpected fees .”
Lodging companies are taking it more seriously now . In September , Hilton sent a letter to the Senators supporting the bill , but also pointing out that this needs to apply not only to the Hiltons of the world , but also the intermediaries that sell their rooms . “ We believe it is critical to get all platforms that advertise , distribute and sell our inventory to do the same ,” the letter stated .
In May , Marriott changed its policy to include ancillary hotel fees in the initial price . Other lodging companies have followed suit .
It ’ s hard to argue that if these “ junk fees ” hadn ’ t been called out , they ’ d still be obfuscated by “ drip pricing ,” a technique whereby only part of a product ’ s price is advertised with the rest revealed later as the customer goes through the buying process .
Unlawful , no . Dodgy , kinda . Listen , we live in a capitalistic society and all not-for-profit companies operate to , of course , make profit . They are now being called out and , in the long run , better transparency will benefit both them and their customers .
That ’ s that . But just when you thought you were safe of the junk fee on your bill , here come what I call the “ what in the hell ?” fee . Typically , these come in the form of an added service charge or gratuity .
Here ’ s an example . There is a restaurant across the street from where I live and the menu ’ s fine print reads : “ As a way to offset rising costs associated with the restaurant ( food , beverage , labor , benefits , supplies ), we have added a 3 % surcharge to all checks . We do this in lieu of increased menu prices . You may request to have this taken off your check , should you choose .”
To my point about capitalism previously , it includes both revenue and expense . And passing on the buck to your customers is not the preferred answer . It basically says , we can ’ t run our business profitably without you bailing us out . To add injury to insult , the restaurant allows you to opt out of it by asking your server . Can you think of anything more unpleasant or uncomfortable ? ( On a side note , wouldn ’ t it be much more palatable to just raise menu prices ?)
ONE MORE THING Then , there is this . We ’ ve all encountered it . You ’ re in your hotel room , in your casuals , watching TV . You think , ’ I ’ ll order a cheeseburger .’ So you do . It ’ s $ 16 and comes with fries . Yum . They bring it up and you have to endure the torment of signing the bill , maybe in a slouchy robe with some risqué scene playing across the TV . You want them out as quick as possible , but then you see this : cheeseburger ($ 16 )— ok fine — and ... tip ( 20 %), delivery fee ($ 5 ), service charge ($ 4.75 ) and then , to add insult to injury , a blank line for added gratuity . By the time it ’ s over , that cheeseburger is now a porterhouse .
What happens next time ? Instead , that customer orders from Uber Eats or puts on clothes and pops out to Five Guys , further shrinking your F & B margin .
Here ’ s the thing : When people travel , they know they will be spending money and , typically , are fine spending it on genuine services and amenities . It ’ s the dubious stuff they take umbrage at .
Maybe it is the right time to remove the junk from the trunk .
Editor In Chief
October 2023 hotelsmag . com 5