Hotels Are Tacking on Secret ‘Donation’ Fees to Room Charges—Here’s How To Make Sure You’re Not Overcharged

Traveling is, by design, an adventure. Some adventures may not be so welcome—flight delays or an unexpected downpour during a hike. Other impromptu moments create lifetime memories, like spotting a favorite celeb on a remote island or watching dolphins play during a waterfront dinner as the sun sets.

Sticker shock when you check out of your hotel falls squarely in the "unwelcome adventure" category. Still, customers are sounding the alarm about "delivery fees" and "built-in tips" for room-service burgers. Similar "destination fees" or "mandatory destination charges" supposedly cover "perks" of staying at a hotel, like Internet and fitness center access that guests thought was simply part of the package.

Consumers are calling these surprise charges something else: junk fees.

One travel expert empathizes.

"It’s frustrating…when you believe you are going to pay a certain amount, and then by the time you check out—either on a website or leaving a hotel!—you end up paying an increased amount," says Ryan Walker, the CEO of travel & education platform Beyond Academy.

What's the deal with this raw deal, and can you do anything to stop it? Read on for answers you may not like.

What Are Junk Fees?

Junk fees are a buzzy term for all the wrong reasons. "Hotel junk fees are additional, often unexpected charges that hotels may impose on guests for various services or amenities beyond the room rate, such as resort fees, parking fees or Wi-Fi charges," says Matt Johnson, PhD, a consumer psychologist and author of Branding That Means Business (Economist Books, 2022).

Why Are Junk Fees Happening?

Dr. Johnson says junk fees seem like mandated, run-of-the-mill costs. "But in fact, they are completely driven by the hotel in order to collect more money for the consumer," he says.

It's a sneaky tactic—sort of like "fine print."

"Junk fees are a way for firms to increase prices, without, seemingly, increasing prices," says Jeff Galak, Ph. D., an associate professor of marketing at Carnegie Mellon University’s Tepper School of Business. "In other words, if a company wants to raise the price of their product by 10 percent, they can do that, or they can add a 10 percent fee."

The upfront result of simply increasing the price may turn customers off from the get-go because it costs more money.

"[Junk fees] might get those same customers excited enough to buy the product, and only then realize that there is an additional 10 percent expense in front of them," Dr. Galak says. "This type of foot-in-the-door technique allows companies to, in a way, trick consumers."

How To Avoid Junk Fees on Hotel Bills

This one is challenging to answer.

"Most fees don't show up until the end of a transaction, and by then, customers are often already committed to buying the product or service," Dr. Galak says.

However, Dr. Galak and other experts say customers can take a few pre-emptive steps.

1. Commit to a budget

First, set a budget.

"The best strategy is to not emotionally invest in a product or service and to set a firm budget," Dr. Galak says.

If you only have $100 to spend on a hotel, Dr. Galak advises customers not to pay a dollar over it, even if the fees try to take you there.

"No matter how tempting it might be, there is likely a reason you set a $100 budget in the first place," Dr. Galak says. "It's important to realize that what matters in the end is value. That is, how much you get out of a product or experience relative to its price."

Would you pay $100 for a cup of coffee? Probably not.

"In the same way, if junk fees make it so that the value of a product or service is too low, just don't buy it," Dr. Galak says.

2. Read reviews

You can also do your homework before even going through the process of booking a hotel.

"Some hotel chains and destinations are known for their high fees, whereas others don’t charge anything at all or an acceptable amount," Walker says. "Before committing to a stay, try to find reviews or small print that lay out the extra junk costs."

3. Ask questions and leave a paper trail

"Be sure and read the fine print before booking, and don't assume that if it says 'plus fees' that these are mandatory or an industry norm," Dr. Johnson says. "As a consumer, you can also ask upfront—and ideally in writing—what the overall cost will be, including all fees, before booking."

What Can You Do if You Notice a Junk Fee Charge After the Fact?

Unfortunately, protecting yourself from junk fees isn't as easy as 1-2-3. Dr. Johnson says it's hard to avoid them altogether.

"They're deliberately deceptive," he says.

If you notice one on a bill, the good news is that you have options other than simply paying the fee.

"If you realize you've been charged a junk fee after your stay, you can contact the hotel's front desk or management to dispute the fee and request a refund," Dr. Johnson says.

The bad news? You may not get out of it.

"They may consider waiving it, but success isn't guaranteed," Dr. Johnson says. "You may increase your chances by leveraging your membership in the hotel's loyalty program or if you mention the brand on social media."

Frankly, getting the junk fee waived may be a matter of luck.

"The old saying 'If you don’t ask, you don’t get' can sometimes apply to waiving junk fees," Walker says. "If you speak to the correct person on a good day. But this is a rare occurrence and has only been successful for me on a few occasions."

Are Junk Fees the New Normal?

It depends on who you ask. President Joe Biden mentioned junk fees in his State of the Union address. The Senate introduced a bipartisan bill called the Hotel Fees Transparency Act to stop hotels from advertising rates without noting mandatory fees.

Dr. Johnson says this type of legislation is likely as good as it will get.

"This may sound like a big win, but hotel chains will most likely find ways of burying this in the fine print of their terms and conditions," Dr. Johnson says. "All in all, I think these fees are unfortunately here to stay, and it will be up to consumers to protect themselves and to drive change in the industry with collective action and boycotts against hotel chains with consistently deceptive practices."

Dr. Galak hopes junk fees don't become more common but believes regulation is necessary as individual efforts can only go so far.

"Junk fees are predatory and hurt consumers," Dr. Galak says. "They serve only one purpose: to increase a firm's profits at the expense of consumers. Unless regulation passes to limit them, however, they are likely here to stay. Firms have every incentive to keep using them, so why stop unless ordered to do so?"

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