In today’s digital age, we all consider online guest house or hotel booking to be fast, easy and convenient. But sometimes this convenience traps us in a trap that we do not even notice until we reach the payment page – hidden fees.
Initially, it seems that we have got a very economical deal. Seeing the attractive rate written on the website, we immediately click on “Book Now”. But as soon as we reach the payment screen, suddenly many new charges are added to the bill – resort fee, parking fee, Wi-Fi charge, cleaning fee, or some strange name of “service fee”. This is the moment when you realize that the deal that seemed cheap is actually proving to be very expensive.
How big is this problem?
This issue is so serious that in August 2023, America’s famous hotel chain Hyatt was even sued in this matter. Even the US Congress is working towards introducing a law that prevents hotel and guest house owners from adding unnecessary charges. It’s not just the US — travelers around the world are now turning to transparent pricing options, fed up with these hidden charges.
According to a research, about 50% of travelers choose hotels or guest houses whose prices are clearly mentioned. At the same time, 31.5% of people abandon the booking process midway if they suddenly see a hidden charge.
Now imagine, if you are a hotel owner and one in three customers abandons the booking just because you did not clearly tell them all the charges upfront — then how big can your loss be.
What are hidden charges?
In simple words, any mandatory fee that is not clearly shown at the beginning of the booking can be called a hidden fee. This does not include taxes or optional amenities, but rather fees that are essential to your stay but you don’t see until you are in the final stages of booking.
Some common examples are:
- Resort fee – This charge is applicable whether you use the swimming pool or gym or not.
- Parking fee – This is fine if you bring a car, but sometimes guests without a car are charged this charge.
- Wi-Fi access fee – You may have to pay extra for basic amenities like internet.
- Cleaning fee – A one-time cleaning fee is charged, especially in guest houses or vacation rentals.
- Online booking fee – This may sound strange, but some platforms add additional charges even if you book online.
Impact on traveler experience
Hidden fees are not just about money, but also about trust. When a traveller sees one price at the time of booking and later sees a completely different price while making the payment, it breaks trust.
- 12% of people immediately change hotels as soon as they see the hidden charges.
- 19.5% of people permanently blacklist hotels that have had such an experience.
- This means that once you lose your customer’s trust, they may never return.
Why are these charges hidden in guest house bookings?
Some hotel or guest house owners think that they can attract more people to their website by showing a low initial price. Later, at the time of booking, the charges are gradually added so that the total amount increases.
This method may bring some extra money in the short-term, but in the long-term it harms your brand value and customer loyalty.
How can you avoid them?
If you are a traveler and are staying in a guest house for the first time, then you can avoid hidden charges by following these steps
- Always look at the “Final Price” – Read the final bill carefully before confirming the booking.
- Read the Terms & Conditions – It often mentions all the charges.
- Talk directly to the guest house – Call and ask if there will be any additional charges for your stay.
- Read reviews – Previous guests often tell what extra charges they had to pay.
- Choose an all-inclusive package – In this, most facilities are available in one price.
Tips for Guest House Owners
If you run a guest house, then you have to understand that transparency is your biggest marketing weapon.
- Write all the charges upfront on your website.
- Promise “no hidden charges” and keep it.
- If any charge is mandatory, then include it in the initial price.
- Take feedback from your customers and resolve complaints promptly.
Conclusion
Hidden charges in guest house bookings are a problem that not only hurts travellers’ pockets but also impacts their trust and experience. In today’s world, when travellers have a plethora of options and online reviews spread in an instant, honesty and transparency can be the strongest competitive advantage.
If travellers are cautious and guest house owners are transparent, this problem can be eliminated and we can all have a truly enjoyable and stress-free travel experience.
