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Are Your Advertised Rates Honest….or Misleading?


Common Hotel Folio Content

Advertised room rate                  $240.00

Sales tax                                         18.50

Occupancy Tax                               12.20

Hospitality Tax                                   2.50

Resort Fee                                      12.95

 Amenity Fee                                     22.45

     Real room rate                                 $308.90

How does that make you feel?


Unfortunately, it is common industry practice to present misleading rates.

What makes them deceptive? The advertised price for a room is not at all what the guest will be asked to pay.

            “But everybody does it!”  Does that make it good?

As a hotel owner ourselves, we have listened to guests and have learned they would simply like to see an honest rate.                      

            Several industry practices result in travelers harboring a negative view of the hospitality industry.

Here are two common examples:

            — Dynamic pricing, which is the practice of automatically escalating as occupancy increases. The hotel is willing gouge the guest for the last few available rooms and even let the room go unsold. This practice was created by the air travel industry and people hate it. Airlines are mini-monopolies. Hotels do not have that advantage.

            — Misleading rates, are not inclusive of actual final charges. The final folio amount that can increase the true cost by as much as 50%. The descriptions of some fees are intentionally opaque. But travelers are not fooled.

            How can honest pricing help lead to more positive feelings about this business class?


Let’s look at two reasons:

            — Guests know what their budget threshold is. When a hotel advertises their room rates as all inclusive, displaying a rate that does not change, the guests feel respected and treated fairly. This is not about concealing the details of the rate. Of course, the hotel is liable for all state and local tariffs, as well as legally imposed fees in some enterprise zones and special districting policies.

            — All-inclusivehonest rates enhance the hotel’s ability to recover numerous ancillary costs. The guest will not understand or care about such details, and the front desk agent will not have to endure third degree questioning about them.



Can show you how to advertise honest rates for your hotel and raise your standing with the guests you serve.

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