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Booking.com Makes a Big Move Against Resort Fees

May 21, 2019
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3 min read
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Booking.com Makes a Big Move Against Resort Fees
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Travelers have a range of tastes and opinions wider than the Grand Canyon, but there's one topic where they agree almost universally: resort fees stink.

In recent years, resort fees have only become worse. They have increased in amount, spread to properties that are decidedly not resorts, been renamed ("destination fees"), and are sometimes even charged per person instead of per room. Resort fees can cost more than the room rate itself, especially at some of the more budget hotels in Las Vegas. At some properties, they have already grown to more than $100 per night.

But there's a new glimmer of hope that perhaps resort fees won't continue on their one-way upward trajectory.

As reported by Vital Vegas and Skift, Booking.com is reportedly taking steps to collect commissions on resort fees. Currently, hotels generally don't pay a commission on the resort-fee portion of the rate when it is paid directly by the customer at the hotel.


A spokesperson for Booking.com confirmed this change to TPG:

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As an extension of Booking.com's overarching aim to provide our customers with transparent information about the total price they will need to pay at a property when they make a booking and to create a level playing field for all of our accommodation partners, we are updating our process when it comes to charging commission on mandatory extra fees that customers are asked to pay at the property.

There are many reasons hotels charge resort fees, including appearing to have a cheaper nightly room rate at first glance. The fee portion of the rate often goes right into the hotel's pocket and isn't subject to losing a cut via the commission paid to third-party booking sites. If hotels begin paying a commission on that part of the rate, that's one fewer incentive to continue charging resort fees. A more consumer-friendly, all-in rate might (again) begin to make more sense.

However, it is unknown if Booking.com's take will spread to the other OTAs — Online Travel Agencies — such as Expedia. Currently, Booking.com bundles the resort fee in the amount you pay to make the reservation online (when you have to pay in advance), whereas Expedia does not charge that portion of the reservation up front, though it is displayed in both cases in the booking breakdown.

Booking.com payment screen with resort fee paid all-in:

Expedia booking screen with resort fee paid at hotel:

There's no guarantee that this will be a tipping point for the pesky fees, but there's a chance it could make a difference. It will be important to see if other OTAs follow Booking.com's lead. Yes, this is a self-serving move that puts more money in the OTAs' pockets, but if it simplifies the booking process for consumers, it might still be a win for us all.

Featured image by ISABELLE RAPHAEL/THE POINTS GUY

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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
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