Ancillary Mania: US hotels forecast to earn $1.95B in fees and surcharges in 2012

This year U.S. hotels will rake $1.95 billion in fees and surcharges, a new record.

That’s according to a new forecast of ancillary revenue in the lodging industry by Bjorn Hanson, dean of New York University’s Preston Robert Tisch Center for Hospitality, Tourism and Sports Management.

The forecast represents a roughly 80% spike since 2001.

While minibar re-stocking and in-room phone charges are old news, fees for housekeeping, room-service trays, early cancellations are all on the upswing.

“Most fees and surcharges are highly profitable,” says Dr. Bjorn Hanson, Divisional Dean of the school, in a statement. “Most have incremental profitability of 80% to 90% or more.”

Rate increases have also helped boost the hotel’s take.

To the latest figures available for this year, occupancy rates have been up 18% and average room rates up 10% at “upper-upscale” U.S. hotels, over the comparable week in 2010, According to Smith Travel Research, the leading industry analyst.

NB: Image of hotel lobby courtesy of Shutterstock.

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Sean O'Neill About Sean O'Neill

Sean O’Neill is a UK-based reporter for Tnooz.

Since university, he's been a full-time journalist for US consumer magazines and websites, and since 2007 he has covered B2C travel news full-time.

He lives in London and is travel tech columnist for BBC Travel. He used to work in New York City as the online senior editor for Arthur Frommer’s Budget Travel.

In the past, O'Neill held editor, writer, and reporter positions at Kiplinger’s Personal Finance and Foreign Policy magazines in Washington, DC. Please visit his personal site and follow him on Twitter or Google+ .

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