Hotels are adding à la carte pricing for services and amenities that used to be included in the room rate.
What are the new fees?
Recently a major hotel management company in the US began adding à la carte fees for amenities and services like pool access and early check-in. Is this the next thing?
MCR Hotels, which manages 125 hotels across the U.S., including the TWA Hotel at John F. Kennedy International Airport and the High Line Hotel in Manhattan, is testing out the new pricing model at approximately a dozen of its independently-owned hotels.
While nightly rates may be lower than previously, guests will have to pay extra for certain services or amenities that used to be free. CEO Tyler Morse told The Wall Street Journal, “Not every guest wants every product, and they don’t want to pay for something they were never going to use anyway.”
Services or amenities that now cost extra include:
-Pool access on the weekends
-Early check-in
-Late check-out
-Gym access
-Breakfast
Suggested rates discussed in the interview included a $25 fee for pool use during peak times such as weekend and a $20 fee for early check-in or late check-out. It’s highly likely fees will vary by property and, of course, they could be expanded to include even more amenities that used to be free.
For example, the TWA hotel website offers an early check-in or late check-out option for fees that ranged from $25 to $150, depending on how early was the check-in or how late was the check-out.
How are they different than resort fees?
These add-on fees are different than resort fees. Resort fees (sometimes called destination fees or other names) are highly controversial because 1) they often are not disclosed prior to the booking process and 2) are not optional. (They usually must be paid to the hotel when you check in.) The hotel gives you a list of what the fee covers, such as WiFi and local telephone calls, but you have to pay whether or not you plan to use those services.
The new à-la-carte pricing model is different because you will have a choice to pay extra to use the pool or go to the gym. If all you want is a bed and bathroom, you’ll only pay the initial price quoted.
Are more hotels going to do this?
While major hotel brands like Marriott and Hilton have adopted resort fees at several of their properties across the U.S., they supposedly have no current plans to introduce à la carte pricing similar to what MCR Hotels is testing. A Marriott executive has been quoted as saying there would likely be “push back” from guests against à la carte pricing, and most hotel owners wouldn’t support it.
That said, many hotels are already charging for things like enhanced internet and some are starting to charge extra for daily housekeeping. So while hotels may be reluctant to jump on board at first just as major legacy airlines didn’t initially follow the pricing model of discount airlines, this may not hold for the future.
On the bright side, à la carte pricing may lead to lower room rates. MCR Hotels says by charging extra fees for amenities, it can offer lower room rates to bring in travelers who wouldn’t use the gym or the pool. Even if this is true, this surely will make comparison shopping for hotels more difficult as travelers must determine and account for extra fees for the comforts that were once expected and included.
Twist’s Take: Be aware some hotels are adding à la carte pricing for services and amenities that used to be included in the room rate.
