Don’t sleep on these sneaky fees.
New York City recently banned “junk” hotel fees, emphasizing the hidden costs that often surprise hotel guests.
As the city prepares to host the FIFA World Cup this summer, city officials announced on Jan. 21 that hidden hotel fees and surprise credit card holds will soon be illegal under a new rule from the Department of Consumer and Worker Protection.
With this rule, which aims to curb inscrutable “service” fees, booking platforms must include all itemized charges in their advertised hotel rates.
And for the first time in America, hotels will be required to disclose credit card holds and advance deposits, including hold amount, potential retention reasons and refund timeline.
“Under this rule, if you check out and suddenly there’s a fee you didn’t see before, that’s illegal,” DCWP commissioner Sam Levine said at the time of the announcement.
This applies to not just hotels physically located in New York City, but also to any hotel or booking site that advertises prices to New York City customers. The new rule takes effect Feb. 21.
There are a few different hidden hotel costs that guests should look out for, whether or not they’re in New York City.
Resort fees
Resort or destination fees are one of the most common hidden hotel charges that guests run into.
These daily charges — typically ranging from $15 to $50 per day — are added on top of the base room rate and taxes, supposedly to cover “amenities” such as Wi-Fi, pool access, gym usage and so on, according to NerdWallet.
At some properties, the resort fee could even end up costing guests more than the room itself.
In reality, these fees pay for things “you can’t even get out of, even if you don’t want them,” Tracy Lamourie, founder and managing director at Lamourie Media, told Newsweek.
“You’re paying for pool towels; you’re paying for things like local calls on a hotel phone that literally nobody ever picks up anymore.”
Early check-in and late checkout
Early check-in and late checkout fees are becoming increasingly common, and rather than being treated like a premium service, they’re more often looked at as a penalty, Lamourie said.
“Hotels know that flight times usually do not line up with regular hotel check-in and checkout times,” she explained. “So, they monetize that by charging for early check-in and late checkout instead of using those as points for frequent travelers.”
Wi-Fi
Free Wi-Fi is still not standard in hotels, much to guests’ surprise. According to Lamourie, many fees for internet have actually increased — and they’re bundled in new ways.
“Sometimes, instead of one Wi-Fi fee for the whole room, you’ll see the fee charged per device,” she said.
“Every phone, every laptop has to pay the Wi-Fi fee, and that adds up quickly if you have more than one person and more than one device.”
Parking
Perhaps not as common for people traveling into Manhattan, parking fees are still an area where costs can quickly add up.
Lamourie noted that dynamic parking fees are coming more common, “the same way a hotel night rate goes up and down, depending on whether it’s a weekend or whether there’s an event going.”
“That’s something travelers often haven’t accounted for, and it can make a big difference.”
Credit card holds
It’s common for hotels to ask for a credit card to put on file upon check-in and place a temporary charge to cover any potential incidental expenses. According to Sofi, the charge can range from $20 to $200 above the price of your room.
Cracking down on the credit card means NYC is “implementing the strongest hotel consumer protections in the United States,” Levine said, noting that it’s “the first requirement of its kind in the nation.”