HOTELS have been accused of adding on hidden fees for guests that ramp up the costs of their stays.
Budget airlines like Ryanair have used “drip pricing” for years, breaking down the total cost of tickets into smaller components, making them seem cheaper than the overall price actually is.
GettyDrip pricing adds extra costs and charges on during the booking process[/caption]
It’s a clever system that Faster Capital say works by “presenting customers with a low advertised rate that only includes a portion of the total cost of their stay”.
Now hotels are getting in on the act by adding costs to bookings via piecemeal booking systems.
As the guest makes their way through the booking process, extra fees and charges are added on bit by bit, including things like resort fees, taxes, service charges and others.
These fees aren’t always disclosed upfront, making it hard for customers to properly compare prices at hotels when booking online.
Sometimes, guests can have huge costs added on for their stays, that can easily rack up a three figure sum before they’ve even stayed at the hotel.
One of those includes “free” cancellation rates, which hotels charge so passengers don’t have to pay a cancelling fee if their plans change.
Research by consumer champions Which? revealed that one Marriott Delta hotel charges an extra £24 per night for the free cancellation option, working out at almost £100 for a four night booking.
Other costs that can be added on include costs for using the WiFi, early check-in or late check-out fees and even discretionary service charges that guests can ask to be removed.
Some places will reportedly even charge as much as £15 for people to get their room cleaned, while others ask for £5 for luggage storage on check-out days.
Luckily, the rules in the UK aren’t like the rules in the USA and other countries.
In fact, after a government investigation into drip pricing, conducted in September last year, it was concluded that the tactic “negatively impacts consumer decision-making and satisfaction”.
The also assessment estimated that the pricing strategy causes UK consumers to spend an additional £0.6 to £3.5 billion online each year.
Fortunately for Brits, hotels in the UK must include all mandatory charges in the headline rate.
Therefore, only costs for additional services can be added on via drip pricing.
Which? recommend checking several booking sites to find the best deal, as well as calling the hotel to see if they’ll match or even beat it.
They said: “It’s illegal in the UK to advertise a price that doesn’t include all unavoidable charges. Usually you have a choice whether to pay for ‘extras’.
“If you want free cancellation it’s worth checking more than one booking site to see where you can find a better deal.
“To get the best deal then phone up the hotel directly to see if they can match or beat it. We’ve found that hotels will give you a better deal around half of the time if you speak to them directly.”
Meanwhile, these are the hidden holiday costs that mean families could spend £1,000 more than they need to.
And these travel experts have revealed the ridiculous things they’ve been charged money for while on the road.
GettyDrip pricing negatively impacts consumer decision-making according to an investigation[/caption]