Beyond the Nightly Rate
The price you see advertised when booking a hotel room is rarely the final amount you'll pay. Beyond the base rate and mandatory taxes, a number of other charges can appear on your bill. These often include security deposits, authorization holds for incidentals,
and specific fees for services used. Hotels implement these charges to protect themselves against potential costs like room damage or unpaid services. For travellers, understanding these additional costs is key to avoiding surprises and staying on budget.
Understanding Deposits and Holds
At check-in, most hotels will require a security deposit. This can be in the form of a cash payment or, more commonly, a pre-authorization hold on a credit or debit card. This isn't a direct charge but a temporary freeze of funds to cover potential issues. The primary purpose is to act as an insurance policy for the hotel against room damage, smoking in a non-smoking room, or missing items. The amount varies widely by hotel, ranging from a small nightly fee to a few hundred dollars for the entire stay. This hold reduces your available credit (on a credit card) or freezes actual cash (on a debit card).
Decoding Incidental Charges
An 'incidental' is any product or service you consume beyond the room and tax. Think of it as opening a line of credit with the hotel during your stay. Common incidentals include anything from the minibar, room service, and on-demand movies to parking fees, Wi-Fi charges, laundry services, and restaurant meals charged to your room. Some hotels are now also charging fees for early check-in or late check-out. Even if your room is prepaid, the hotel will almost always require a card on file for these potential extra costs. The total of any incidentals you use will be deducted from your deposit hold or charged at checkout.
The Credit vs. Debit Card Dilemma
While most hotels accept both credit and debit cards for deposits, using a credit card is strongly recommended. When a hotel places a hold on a debit card, it freezes actual money in your current account, making those funds unavailable for other purchases. This can be particularly problematic if the hold is large or if you're on a tight budget. Releasing this hold can also take longer for debit cards, sometimes up to several business days after you check out, as the process depends on your bank's policies. A credit card hold simply reduces your available credit limit, without tying up your cash.
Don't Forget Resort Fees
A particularly notorious charge is the 'resort fee', sometimes called a 'destination' or 'facility' fee. This is a mandatory daily charge added by many hotels to cover amenities like the pool, gym, or Wi-Fi, regardless of whether you use them. These fees, which can range from $20 to over $50 per night, are often not included in the initial advertised price, making a room seem cheaper than it is. This practice allows hotels to appear more competitive on booking sites while increasing their revenue.
Tips for a Smoother Checkout
To avoid bill shock, be proactive. When you check in, ask the front desk staff to clarify their deposit and incidental hold policy, including the amount and how long the hold will last. Before using any service or amenity, confirm if there's a charge. Keep track of your expenses during your stay. Upon checkout, review your itemised bill carefully and question any charges you don't recognise. If a hold isn't released from your card within a week of your departure, contact both the hotel and your card issuer to resolve it.
