U.S. Lodging Industry Fees and Surcharges Continue Upward Trend in 2011 to New Record - $1.8 Billion
 
The NYU School of Professional Studies Website
Faculty
Degrees
Professional Certificates
Upcoming Events
Search Courses
Credit Course
Non-Credit Course

U.S. Lodging Industry Fees and Surcharges Continue Upward Trend in 2011 to New Record - $1.8 Billion

100_3_3-poLG-bjorn_hanson2

Trend Analysis Report

September 20, 2011

By Dr. Bjorn Hanson, Divisional Dean, Clinical Professor, HVS Chair
Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management
NYU School of Continuing and Professional Studies (NYU-SCPS)

Total fees and surcharges collected by U.S. hotels are increasing again in 2011, from $1.7 billion in 2010 to a record $1.8 billion.  The increase reflects a combination of four to five percent more in occupied hotel rooms than in 2010, plus new or higher fees and surcharges at many hotels, especially resorts.

Fees and surcharges emerged as an industry practice in about 1997 with resort fees (one of the first resort fees was titled, “amenities tariff”) and have increased every year except for periods following 2001 and 2008 when lodging demand declined.  Energy surcharges were introduced in 2000.

Examples of fees and surcharges include: resort or amenity fees, early departure fees, reservation cancellation fees, internet fees, telephone call surcharges, the costs of local calls, business center fees (i.e. cost of sending/receiving faxes and sending/receiving overnight packages), room service delivery surcharges, mini-bar restocking fees, charges for in-room safes, and automatic gratuities and surcharges.  For groups, there have been increased charges for bartenders, service, and other staff at events; charges for set up and breakdown of meeting rooms; charges for meeting rooms in which meals are served (the common practice has been that there is a charge for meeting rooms but not an additional room charge for rooms in which meals are served); and fees for master folio billing and baggage holding fees for guests leaving luggage with bell staff after checking out of a hotel but before departure.

Fees and surcharges are especially profitable; most have incremental profitability of 80 to 90 percent or more, so they represent significant contributors to industry profits.

The estimated amounts and trend of fees and surcharges collected is summarized below:

Year    Amount (in billions)
2000    $1.2
2001      1.0
2002      0.55
2003      1.0
2004      1.2
2005      1.4
2006      1.6
2007      1.75
2008      1.75
2009      1.55
2010      1.7
2011      1.8 (forecast)

These amounts are estimated based on selected interviews with industry executives and corporate travel executives, analysis of industry financial data, press releases, and information available on hotel and brand websites.

EDITORS: To interview Dr. Bjorn Hanson about this research or for more information, please contact Cheryl Feliciano at Cheryl.Feliciano@nyu.edu or 212-922-9103 or Suzanne Dawson at sdawson@lakpr.com or 212-329-1420. 

About the Author
Bjorn Hanson, Ph.D., divisional dean, clinical professor, and HVS Chair of the hospitality and tourism management program at the NYU-SCPS Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management, is a hospitality and travel researcher, widely respected for his industry forecasts and for having created econometric models that transformed business analysis in the field. Prior to joining NYU-SCPS, he held the position of global industry leader, hospitality and leisure, at PricewaterhouseCoopers LLP. 

About the NYU School of Professional Studies

Established in 1934, the NYU School of Professional Studies (sps.nyu.edu) is one of NYU's several degree-granting schools and colleges, each with a unique academic profile. The reputation of the School of Professional Studies arises from its place as the NYU home for study and applied research related to key knowledge-based industries where the New York region leads globally. This is manifest in the School's diverse graduate, undergraduate, and Professional Pathways programs in fields such as Accounting, Finance, and Law; Applied Health; Arts, Design, and Film; Creative Cities and Economic Development; English-Language Learning; Entrepreneurship; Fundraising and Grantmaking; Global Affairs; Hospitality and Tourism Management; Human Resource Management and Development; Languages and Humanities; Management and Systems; Marketing; Project Management; Public Relations and Corporate Communication; Publishing; Real Estate, Real Estate Development, and Construction Management; Sports Management, Media, and Business; Translation; and Writing.

More than 100 distinguished full-time faculty members collaborate with an exceptional cadre of practitioner/adjunct faculty members and lecturers to create a vibrant professional and academic environment that educates over 5,000 degree-seeking students from around the globe each year. In addition, the School fulfills the recurrent professional education needs of local, national, and international economies, as evidenced by nearly 28,000 Professional Pathways enrollments in Career Advancement Courses and Diploma Programs. The School's community is enriched by more than 31,000 degree-holding alumni worldwide, many of whom serve as mentors, guest speakers, and advisory board members. For more information about the NYU School of Professional Studies, visit sps.nyu.edu.

 

PR Office Contacts