Resort fees exist as a tool for hotels and resorts to recover part of the money used to advertise online on sites such as Kayak. The idea behind charging a resort fee is that part of the money that was used to attract a guest to an establishment through advertising can be recovered when a guest is signing in. Charging resort fees helps the hotel cut down on the cost of advertising. By cutting down on operational costs, the hotel becomes more profitable and can cover its expenditures better. Resort fees exist to benefit a hotel mainly and are not to be enjoyed by third-party service providers.
Booking sites are not paid to include resort fees in the advertisement feature. Quoting a resort fee would be done at the expense of the booking company. In the advertisement, the service provider is obligated to advertise only what the customer has paid for. While Kayak is paid to advertise the various offers that hotels have to offer, it is not obligated to quote their resort fee. This is because the hotel has not issued the directive since most hotels prefer charging their resort fee at a booking desk right after the arrival of guests.
Hotel booking services avoid listing resort fees because they are likely to cause disparities in pricing. Since hotels charge different ratesresort feesfees, there would be differences in pricing in offers that are usually within a similar range. To avoid these inconsistencies in pricing, hotel booking agencies leave guests to discover what resort fees are charged at a hotel. By avoiding quoting resort fees, hotel service providers level the playing ground between different hotels, ensuring that their clients judge them off what they have to offer. The success of service providers such as Kayak depends on the success of hotels, they are interested in seeing this industry prosper.
When resort fees are paid at the reception, 100% of this fee goes to a hotel’s account. Even if a website such a Kayak advertised such fees, there would be no way for them to enjoy any returns from resort fees. Since service providers such as Kayak do not stand a chance to benefit from these fees directly, they have zero incentive to advertise them. In business, you only go into partnerships that improve your profit margin. Resort fees have little to offer kayak as an agency. If third-party companies such as Kayak quoted the resort fees, it would be exploitation on their part.
The advertising model behind creating ads for hotels on an online platform is centered around who can create the cheapest offers to attract the highest number of visitors. Since the resort fee is an additional cost, it is not in the best interest of the business to mention them. Resort fees are purposefully ignored to create more attractive offers that shoppers will respond to. Having a resort fee advertised would come off as an additional cost and end up costing you visitors that are more economically savvy. It is in the best interest of both the hotel and Kayak to leave out the resort fee detail.