ThinkReservations allows adding various reservation fees, such as resort, service, and cleaning fees. Depending on how you configure these fees, they may or may not be bundled into the advertised room rate seen in the online booking engine. Additional guest fees, pet fees, and Default Line Items configured in your room settings will all impact the price per night on the booking engine's results page. See the image below for reference. If your business is located in California, other fee configuration options, such as taxes, can cause an issue due to California law, which requires the initial price per night to include all mandatory fees. See here for more.
There are several ways to incorporate fees. Each method has its own implications. It’s essential to understand these implications to ensure compliance with local regulations to protect your business.
Important: If you have separate fees that increase your rate beyond the base rate, you may be out of compliance. Methods that do not include mandatory fees as part of the base rate advertised on your booking engine and across third-party booking avenues may not be in compliance with fee transparency laws in some states. We recommend consulting with your legal advisor to determine whether fees must be included in the advertised rate to comply with local laws. For example, California requires fee transparency effective July 1, 2024. For more information, visit the California Hotel & Lodging Association website.
Options to set up fees
Set It Up as a Tax
Considerations:
Configuration: As a percentage of the total.
Application: Applied to each night.
Itemization: Added after the subtotal in the booking engine and on your reservations.
Accounting Reports: Appears as a tax.
Advertising: Not included in the subtotal or base rate advertised on your booking engine and third-party booking avenues such as Google Hotel Ads and Tripadvisor.
Implications:
Compliance: This method may violate fee transparency laws in some states, as the fee is not included in the advertised rate.
Set It Up as a Default Line Item
Considerations:
Configuration: As a flat fee.
Application: Applied per stay (not per night).
Itemization: Included in your subtotal.
Advertising: Included in the base rate advertised on your booking engine and third-party booking avenues such as Google Hotel Ads and Tripadvisor.
Implications:
Compliance: This method is likely to comply with fee transparency laws since the fee is included in the advertised rate, ensuring customers see the true cost upfront.
Set It Up as a Packaged Rate Type
Considerations:
Configuration: As a flat fee.
Application: Can be applied either per stay or per night, as well as per guest.
Itemization: Included in your subtotal.
Advertising: Included in the base rate advertised on your booking engine and third-party booking avenues such as Google Hotel Ads and Tripadvisor.
Implications:
Compliance: This method is likely to comply with fee transparency laws since the fee is included in the advertised rate, ensuring customers see the true cost upfront.
Include Fees as Part of Your Base Rate
Considerations:
Configuration: No special configuration is required other than increasing your rates.
Application: Lumped in with the subtotal (not itemized).
Itemization: Included in your subtotal, impacts your ADR.
Advertising: Included in the base rate advertised on your booking engine and third-party booking avenues such as Google Hotel Ads and Tripadvisor.
Implications:
Compliance: This method is likely to comply with fee transparency laws since the fee is included in the advertised rate, ensuring customers see the true cost upfront.
Summary
When setting up reservation fees in ThinkReservations, carefully consider the legal requirements for fee transparency in your state. While configuring fees as a tax can be convenient, these methods might not comply with fee transparency laws. Using a default line item, package rate, or including fees as part of your base rate is more transparent and likely to meet legal standards, providing clear pricing to your guests.
For further assistance and to ensure compliance with local laws, please consult with your legal advisor. ThinkReservations does not provide legal advice.