What is a Resort Fee and Do You Have to Pay It?

What the heck is a resort fee, and is there any way to avoid paying it? I often get this question on my Las Vegas videos and wanted to make a video to explain what the heck this fee is. This fee comes in many different names, Resort fee, Destination fee, Urban Fee, Facility fee, Amenity Fee, Resort Charge, but it’s virtually the same thing.

It is a fee that is added by the hotel on top of the room rate and taxes. IT IS NOT A TAX.

Range from $20-$50, but can be up to $100/night. They can sometimes be more than the room cost, particularly in Las Vegas, where resort fees apply to all 62,000 hotel rooms on the Las Vegas Strip.

The hotels say these fees are typically to cover a bunch of things that used to be included for all guests… but somehow are now covered by this fee, like pool access, pool towels, your in room coffee pot, coffee to use in the pot, a bottle of water so you can make the coffee, wifi, gym access, massages, movie rentals, etc, etc.

These fees are particularly irritating because they are often not advertised clearly. During booking you typically see the room rate first, then later see it with the resort fee tacked on.

Consumer rights advocates call it drip pricing, one price is lured out to bring you in, then more fees are tacked on at the end. And it’s actually illegal in many countries including Australia, and countries in the EU. But the USA doesn’t have any laws against it.

It’s generally believed these fees originated in North America around 1997 when some resorts started adding mandatory fees regardless of which facilities were actually used by the guest.

It seems like every day there’s another hotel charging a resort fee… and now tons of places that aren’t even resorts… lots of hotels in New York, LA, that’s why they call it something else, like a “destination fee.” There were 15 hotels in New York City with resort fees in 2016. In 2018 there are 84. Even The Days Inn in Miami Beach, and the Super 8 in Las Vegas charge resort fees.

The Life Hotel in New York City lists their fee as an "NYC mandatory City Hotel Fee." A resort fee is not a tax nor is it a mandatory city hotel fee.

I’m pretty sure all consumers hate these fees, including myself. So why do hotels do it?

1. So the hotel can get more revenue without increasing the room rate that gets ranked on search engines
2. So that they don’t have to pay as much commission to travel agents since travel agent commission is based on the room rate.
3. So that guests pay less taxes because the hotel occupancy tax often applies on the room rate

So that’s what I think.. But what do the hotels themselves why? An article in Fortune magazine quotes a few hotels on why they have resort fees:
The Arizona Grand Resort & Spa in Phoenix says “Studies have proven that travelers prefer to book a lower room rate and pay the resort fee on top than to pay one bundled higher price”

The WaterColor Inn & Resort in Florida says: “By not including the resort fee, we’re able to break out all of the amenities the guest will receive with this fee – an explanation that may be missed if this fee was included within the total rate”

So why don’t search engines display the resort fee more prominently? If they do then their prices will seem higher than everybody elses.

But you know what? It’s backfiring… a recent article in Los Angeles Times suggests that Las Vegas’ recent decline in visitation has been due to resort fees and parking fees.

Some hotel rating systems, including AAA, have taken a policy of deducting points from a hotel being reviewed if they charge resort fees. AAA has said resort fees are a major annoyance of travelers

Some ways to avoid paying resort fees:

1. Have elite status (Caesars Diamond waves resorts fees)
2. Book with points
3. Asking the hotel desk manager to remove the fee
4. Dispute the charge with your credit card company
5. Just stay at a hotel that doesn’t have them -- speak with your business

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[alphakub]

Vegas used to be an annual visit, now every two to three years is more than enough. The constant nickel and diming is too much of a turn-off now.

[evancortez]

Marriott is being sued for this "drip pricing" scheme so hopefully something positive will come out of that

[mrbreman]

8:51 is when he starts talking about how to avoid resort fees, you're welcome!

[griffin]

I hate hate "resort fees" it is a cash grab and nothing else ....I just cancelled a booking for a hotel in San fran because they charged a resort fee ..I sent them an email about the resort fee and have heard nothing back from them ... so if people speak up and not stay at the hotel's charging these resort fees ..thanks for the video

[oliviagriffiths]

From the UK and I absolutely love your videos, especially the Vegas ones! Wish I’d seen them before I went last June. Going to New York in December so your videos are helping me plan, especially the public transport!

[Oyares]

Thank you Chris for this informative video! By educating ourselves we can make plans to avoid this charge, or bring it to the attention of higher management. There are already signs this fee is backfiring. Stay well informed before you book. Great information!

[videogamevegasYeOldeAccount]

Chris,

Such an important video! Well done!

My first run in with a resort fee, which happened many years ago (in Vegas), stunned me so much that I called over a manager and accused them of a bait and switch. I explained that nowhere on the Travelocity site did it mention this mysterious "Resort Fee" (which was true, it was nowhere on the site, or on my printed itinerary). That's when I found out that booking sites didn't have to divulge these dubious fees. They have to now, of course, which shows you just how sneaky these hotels where trying to be.

After the next couple times to Vegas, I realized I couldn't avoid them, though I did try a few more unsuccessful attempts to argue my way out of them. I don't even consider Resort Fees as separate fees any longer, but part of the "Real" price of the room (Resort Fee + per night rate). I have to now finagle my way through booking sites, manually adding these resort fees into the booked prices in order to find out what the actual stay is going to cost. Then I have to take all these new totals of each hotel and compare them, in order to find out which hotel actually has the best price. What a hassle!

Calculating what I'm actually paying has helped me realize something though. Hotels are charging WAY TOO MUCH now and getting away with even more. The underhanded way Resort Fees were first implemented, and the dishonest way they are still being implemented, leaves a bad taste my mouth. To combat this, I've implemented my own fee... It's called the "VGV stops going to Las Vegas as much as he used to" fee.

I used to go Vegas twice, sometimes three times a year. But after the whole "Resort Fee" thing, and what I feel is an overall decline in value involving more and more facets of Vegas, I just can't justify frequent visits any longer. It seems you can't go a month without hearing about some new sort of scheme that is maliciously crafted and targeted to suck every bit of coin from visitors, while giving back as little as possible in return (parking fees, removal of gambling free drinks unless you hit certain thresholds, etc.) And don't get me started on the Malls, Attractions, and Restaurants that close earlier and earlier every year (Vegas is open 24 hours, my patootie). It seems if you don't club, gamble, or bar, then Vegas nightlife is almost non-existent to you.

I don't mean to be so down on this wonderful town Chris, you know I've expressed many times how much I love Vegas, it's just things like Resort Fees really sour the experience. I love staying in Strip hotels and that's a big part of the experience for me. I've had to vote with my wallet and I actually haven't been back to Vegas since 2017 and won't be visiting this year. Hopefully there are more people out there who also won't stand for these kinds of practices and hotels and businesses will be forced to reassess. If not, I'll go less often and spend my money elsewhere.

Again, I want to applaud you on this video. It so clearly and succinctly explains the practice. Your injection of subtle sarcasm in all the right places makes this depressing topic very entertaining :)

Have a great one!


vgv

[HelloFromHawaii]

Resort fees are pretty much everywhere in Hawaii now. Wish the locals in Hawaii could at least get the fees waived. Kamaaina discounts are good, but the fees add up and make it tough for staycations.

[formattb]

Great video! I like the history and current events information you add to the topic.

[tyler]

Nice video as always. I’m about to go to Vegas and all the Vegas videos help out a lot.

[Ratgirl]

In Las Vegas ALWAYS ask if your gambling play can take off resort fees. I was able to get all 4 days taken off and only payed taxes.

[louisecaldwell]

Also you can stay at an Air BnB. Very disappointing now these resort fees are just a big rip off!

[roachtoasties]

Resort fee = total ripoff. So, lets say, the Ritz Carlton can charge $1 a night for rooms, making their hotels show up on top of the search results, but the fine print shows a mandatory $1, 000 per night resort fee. There should be a law saying the room rate must include all these "fees" but I'm not hopeful.

[brucekingfield]

I think we should vote with our feet on resort fees. Las Vegas has people well-trained to expect nothing in return for their money.

[netlehien]

There’s no such bloody resort fee in Australia at all as it is outrageous which would lead to the ACCC/consumer protection authority being truly offended

[simonbreanda]

I’ve traveled to Vegas twice from the UK pre introduction of resort fees, I can agree with you that it is putting people off visiting, as I certainly won’t be going back. So glad this blatant attempt to con guests is illegal in Europe!

[akaisha]

I really appreciate your level of neutrality in this video. Despite having a stance against resort fees, you still present the information in a logical way that breaks down the hotel's perspective. Again, regardless of how you personally feel about it, you still seek to provide information in a general way. I think that's brilliant and really appreciate your take on this subject. You're going to pay the fee one way or another. It'll either be by having a higher room cost or by packaging it with the fees section, but you're still going to pay it. Ultimately it's still going to boil down to that.

[seairis]

The first time I stayed at a hotel that was charging additional fees was in Palm springs California and they said it was a parking fee. I spoke with the manager and told him I would book my stay somewhere else, so he took it off and actually ended up giving us a room upgrade because they had overbooked the smaller rooms. Recently my stay in Reno was charging a $35 a night resort fee. Due to covid, all of their listed amenities were not available with the exception of the bottled water in the room. I couldn't even get room service on the night that I have stayed. I complained to management and they took that resort fee off.

[stuartj]

Very informative video, great channel! 👍🏻

[attilamorvai]

Love all your vegas
Thank you!!!
Please do more of these kind of vids on vegas!!!