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U.S. Hotels Collectively Make $3 Billion More Thanks to This Method

Blatantly ridiculous bills stacked with fees will turn guests away. However, creating a fair balance of fees without going overboard can bump up your profit – especially if your bookings are slowing. If you’re able to do it just right, those extra fees can be quite lucrative.

Bjorn Hanson, a hospitality expert with New York University, found that hotels in the U.S. as a whole earn an additional $3 billion through fees outside of basic room charges. That’s a steep number you’ll want to cash in on. The majority (90%) of those fees typically go straight to a hotel’s bottom line.

The best way to make this work without driving away guests is by ensuring they see the value behind those fees. If you’re charging a resort fee, for example, make sure that you provide worthwhile perks like a pool, complimentary breakfast, or a gym room.

Here are a few different types of fees you should consider implementing.
Parking fees

Many hotels charge for parking, especially in urban areas where parking space is hard to find. These fees can be a substantial source of income, especially if your hotel is located in a high-traffic area. Consider adding a valet option as well if you have the proper staff, location, and flow of guests to do so. Hiring someone per day may be well worth it if your valet fee is high enough.

Early check-in and late check-out fees

By charging guests for early check-ins or late check-outs, you can encourage them to adhere to your preferred check-in and check-out times, ultimately reducing the workload on your housekeeping and front desk staff. If guests decide to pay those fees, you get to walk away with more money than you would’ve otherwise. On your end, it’s a win-win situation.

Room upgrades

Offer guests the option to pay for room upgrades. Whether it’s a larger room, a better view, or more luxurious furniture, room upgrades can be a lucrative source of revenue. You can also add certain more modern technology to these rooms to make them more valuable. Those upgrades can range from a better TV to customizable lighting to faster WiFi.

Optional housecleaning fee

Offer guests the choice to opt-in to daily housekeeping services for an additional fee. Some guests may prefer fewer interruptions during their stay and therefore won’t want the fee or a daily visitor. Using this system can make the jobs of your cleaners easier so they don’t have a full building of rooms to visit in a day while providing extra attention to the guests who really want it and make more money all at the same time.

Room service fee

Charge a fee for guests who order room service, which covers the convenience of having meals delivered to their room. Don’t make the dollar amount too egregious though, or else your guests may just opt for another service like Uber Eats.

Digital key fee

Offer guests the option to pay for a digital key, allowing them to bypass the front desk and access their room using a mobile app. This is extremely convenient for guests as they don’t have to worry about carrying around an extra keycard, most everyone carries a smartphone around with them all day already.