The hidden cost of a hotel stay: Surcharges for add-ons like Wi-Fi, towels and toiletries rake in big bucks

Melbourne’s pay-as-you-go Tune Hotel charges extra for TV, towels and toiletries

The little “extras” can add hundreds of dollars to a hotel room bill, sometimes to the guest’s surprise.

And the bad news is, more surcharges are expected in coming years as hotels try to weather fierce competition at the same time as boosting the bottom line.

Tune Hotel’s pay as you go concept means guests pay extra for everything from bath towels to turning on the television. Picture: Stuart Walmsley Source: News Limited

In the US hotels have begun to charge for previous complimentary services like baggage storage, extra towels or pillows.

Mini bars fitted with sensors can also automatically register a charge if an item is removed for more than a few minutes.

Melbourne’s Tune Hotel has taken the concept even further, offering a “pay as you go service” for guests which charges them for almost everything other than the room itself.

Turning on the television, towels, toiletries and carparking are all extra but the charges are disclosed upfront.

General manager Nathan Copsey said about 75 per cent of guests paid for more than just the room.

“We just want people to pay for what they use,” said Mr Copsey.

“We don’t have function rooms, we don’t have pools, we don’t have gyms that require a lot of upkeep that you have to charge guests for, so it’s basic.”

The concept was developed by the founder of low cost carrier AirAsia, Tony Fernandez, and is similar to the model used by budget airlines.

Richard Munro from the Accommodation Association of Australia said it was likely the “pay as you go” model would become more common, as venues increased efficiencies.

“I think you might find more hotels making (charges) simpler and packaging things up so you pay one price,” said Mr Munro.

“You look at cruises — the reason they’re so attractive is because you pay one price upfront.”

Using Wi-Fi in a hotel room often costs about $10 a day

He said charging guests for things like Wi-Fi connection fees was not unreasonable because of the cost of providing the service.

“It costs a lot of money to put that infrastructure into big concrete buildings which is why many still charge for Wi-Fi,” Mr Munro said.

Among the extras now levied by hotels are additional costs for children even if bedding already exists, a “tray” surcharge on top of room service bills, an upgrade option for better quality toiletries and a pillow menu where guests can hire one that is more to their liking.

Mr Munro said such surcharges helped boost otherwise narrow margins in the accommodation industry.

“It is a competitive situation with room rates, similar to airfares,” he said.

“The main decision a consumer has to make is to buy a room at a rate that’s reasonable. Then it’s up to the hotel what else is included in that price or offered as an extra, but they do need to be upfront about what those surcharges might be.”

Source:  news.com.au - 14 September 2014