What Are Resort Fees? A Guide for Travelers and Hoteliers

Imagine finding the perfect beachfront resort at what appears to be an incredible rate.

You compare a few hotels, select your dates, and head to the checkout page, only to discover an additional daily charge labeled "Resort Fee."

For some travelers, it's an unexpected surprise.

For hotel owners, it's a pricing strategy designed to support the amenities and experiences that have become part of the modern resort stay.

Over the past two decades, resort fees have become one of the hospitality industry's most discussed pricing practices. Supporters view them as a way to bundle valuable services into one daily charge, while others prefer every cost to be reflected in the advertised room rate.

Understanding why resort fees exist and how they became so common helps both travelers and hospitality professionals make more informed decisions.

The History of Resort Fees

Although resort fees may seem like a relatively recent concept, the idea has existed for more than 25 years.

There is no single hotel credited with inventing the resort fee. However, Las Vegas is widely recognized as the birthplace of the modern resort fee model.

During the late 1990s, casino resorts faced increasing competition and growing operating costs as properties evolved into complete entertainment destinations featuring luxury pools, spas, fitness centers, restaurants, shopping, nightlife, and live entertainment. Operators were looking for ways to recover the cost of these expanding guest experiences while remaining competitive on hotel booking websites.

One of the earliest and most frequently cited examples was The Venetian Las Vegas, which introduced a mandatory daily resort fee around 2000. Soon afterward, major operators including MGM Resorts International, Caesars Entertainment, and Wynn Resorts adopted similar pricing strategies.

As online travel agencies such as Expedia and Booking.com became increasingly popular in the early 2000s, hotels recognized that many travelers sorted accommodations by the lowest advertised nightly rate. Separating certain amenities into a mandatory resort fee allowed hotels to present a more competitive room rate while still recovering the cost of operating premium facilities.

The concept quickly expanded beyond Las Vegas.

By the early 2010s, resort fees had become common in destinations including Orlando, Hawaii, Scottsdale, Palm Springs, Miami Beach, and many ski resorts throughout North America. Urban luxury hotels later introduced similar charges under names such as Destination Fee, Urban Fee, Amenity Fee, or Experience Fee.

Today, resort fees generate billions of dollars annually for the U.S. lodging industry and remain one of hospitality's most widely debated pricing models.

What Is a Resort Fee?

A resort fee is a mandatory daily charge collected by a hotel to help cover services and amenities available throughout a guest's stay.

Unlike optional purchases such as spa treatments or room service, the fee applies regardless of whether guests use every included benefit.

Depending on the property, resort fees may include:

• High-speed Wi-Fi
• Fitness center access
• Beach chairs and umbrellas
• Swimming pool facilities
• Daily fitness or wellness classes
• Bicycle rentals
• Shuttle transportation
• Bottled water
• In-room coffee
• Local telephone calls
• Digital newspapers
• Recreational activities
• Cultural experiences
• Business center access

Every hotel determines which services are included, making it important for travelers to review the fee description before booking.

Why Do Hotels Charge Resort Fees?

The reasons vary from one property to another, but most hotels cite several common objectives.

Bundling Amenities

Luxury resorts often provide dozens of services beyond the guestroom itself.

Rather than charging separately for each activity, many hotels combine them into one daily fee that allows guests to enjoy the resort throughout their stay.

Supporting Resort Operations

Resorts require significant investment beyond guestrooms.

Swimming pools, landscaped gardens, beaches, fitness centers, recreational equipment, wellness facilities, children's clubs, and entertainment programming all require continuous maintenance, staffing, utilities, and upgrades.

Resort fees help offset these ongoing operational expenses.

Competitive Pricing

Hotels compete aggressively on nightly room rates.

Separating some amenities into a resort fee allows a property to display a lower base rate while still generating the revenue needed to operate a full-service luxury resort.

Creating a Consistent Guest Experience

Many hotels believe guests prefer access to multiple amenities without having to pay separately every time they use a fitness class, beach chair, or shuttle service.

Bundled pricing simplifies the guest experience while encouraging visitors to enjoy more of the resort.

What Is Usually Included?

Although inclusions vary, resort fees commonly provide access to:

• Wi-Fi
• Pool facilities
• Beach access
• Lounge chairs
• Fitness center
• Wellness classes
• Local calls
• Bottled water
• Digital newspapers
• Resort activities
• Business center services

What Is Usually Not Included?

Most resort fees do not include:

• Spa treatments
• Golf green fees
• Premium dining
• Alcoholic beverages
• Valet parking
• Airport transportation
• Excursions
• Premium water sports
• Babysitting

Where Are Resort Fees Most Common?

United States

The United States has the highest concentration of resort fees worldwide.

Common destinations include:

• Las Vegas
• Orlando
• Hawaii
• Miami Beach
• Scottsdale
• Palm Springs
• Aspen
• New York City (Destination Fees)

Caribbean

Resort fees appear at some luxury hotels, although many all-inclusive resorts incorporate most services into the room rate.

Mexico

Mexico generally has fewer resort fees than the United States.

Most all-inclusive resorts include the majority of amenities within the nightly rate.

Most of the luxury resorts have resort fees.

Travelers should distinguish resort fees from mandatory environmental or tourism taxes collected by local governments.

Europe

Resort fees are uncommon.

Instead, visitors typically pay government-imposed city taxes or tourism taxes collected by hotels on behalf of local authorities.

Middle East

Hotels rarely charge resort fees.

Government tourism levies are more common than hotel-imposed amenity fees.

Asia-Pacific

Countries such as Japan, Singapore, Thailand, Indonesia, and Australia generally favor inclusive pricing, although some destinations collect government tourism taxes.

Resort Fees vs. Government Taxes

These charges are frequently confused but serve very different purposes.

Resort FeeGovernment Tourism TaxSet by the hotelSet by local or national governmentSupports hotel amenitiesSupports tourism infrastructureVaries by propertyApplies across an entire destinationFunds guest servicesFunds public services and destination management

Examples of government taxes include:

• Quintana Roo Environmental Sanitation Tax (Mexico)
• Venice Tourist Tax (Italy)
• Amsterdam Tourist Tax (Netherlands)
• Hawaii Transient Accommodation Tax (United States)

The Push for Greater Transparency

As resort fees became more common, travelers increasingly asked for clearer pricing during the booking process.

In response, regulators introduced new transparency requirements.

In the United States, the Federal Trade Commission (FTC) finalized its Rule on Unfair or Deceptive Fees in 2024, with implementation beginning in 2025. The rule requires hotels and booking platforms to clearly display mandatory fees as part of the total advertised price, helping consumers compare accommodations more accurately.

The regulation does not prohibit resort fees. Instead, it encourages greater pricing transparency so travelers understand the full cost before completing a reservation.

Many hotel companies and online travel agencies have since updated their booking platforms to display mandatory charges earlier in the reservation journey.

Should Travelers Avoid Hotels with Resort Fees?

Not necessarily.

The more important question is whether the included amenities provide meaningful value.

For example, a daily resort fee may include:

• Premium Wi-Fi
• Beach chairs
• Paddleboards
• Daily yoga classes
• Bottled water
• Evening entertainment
• Resort transportation

If a guest plans to enjoy these services, the bundled fee may represent better value than paying individually.

Business travelers who spend little time at the hotel, however, may prefer accommodations without mandatory resort fees.

Comparing the total stay cost, rather than simply the advertised nightly rate, remains the best approach.

The Future of Resort Fees

Hospitality pricing continues to evolve.

Some hotel companies are moving toward all-inclusive pricing models that incorporate more amenities directly into the room rate. Others continue to use resort or destination fees while expanding the experiences those charges include.

Advances in technology may eventually allow hotels to offer more personalized pricing, enabling guests to choose packages that match the way they travel.

Whatever direction the industry takes, one principle is becoming increasingly clear.

Transparency builds trust.

When travelers understand exactly what is included and why they can make better-informed decisions. For hotels, clearly communicating the value behind resort fees helps strengthen confidence and create a smoother guest experience from the very beginning of the booking journey.