U.S. Hotel Fees Forecast to Reach $2.7 Billion in 2017 as Stricter Cancellation Policies Take Hold
Skift Take
We all understand why hotels are collecting more fees but the types of fees and surcharges they're collecting seem to be changing in interesting ways. More stringent cancellation fees are a trend while totals for Internet-access fees declined.
For the ninth year in a row since 2009, U.S. hotels are expected to collect from guests a record amount of total fees and surcharges.
This year, according to a report compiled by Bjorn Hanson, clinical professor at the NYU Jonathan M. Tisch Center for Hospitality and Tourism, hotels are expected to collect a $2.7 billion in fees and surcharges. Hanson's report is based on interviews with hotel and corporate travel executives, analysis of financial data, press releases, and information from hotel and brand websites.
The estimated 2017 tally increased 3.84 percent to $2.7 billion compared with the $2.6 billion collected in 2016 despite the fact that occupied room nights in 2017 were fewer than expected. In 2017, hotels in the U.S. saw an uptick of 2 percent in occupied room nights compared with 2016.
One likely reason why hotels still managed to increase the total amount of fees they collected this year is the increased emphasis on cancellation fees by the major hotel chains.
