London Daily

Focus on the big picture.
Tuesday, Apr 07, 2026

Hotels try out fees for using the pool and checking in early

Hotels try out fees for using the pool and checking in early

Lodging companies such as MCR are experimenting with a la carte pricing for services and amenities, and cutting room rates in return
One of the largest U.S. hotel owners is experimenting this year with a new business strategy: Charge guests for most services and amenities, just like in the airline industry.

At roughly a dozen of his company’s independent hotels, Tyler Morse said, any guest can get an early check-in, but it costs about $20. A similar fee applies to a late checkout. Use of the pool might be free on a Tuesday morning, but cost guests $25 on a scorching Saturday afternoon. Gym use and breakfast also come with an additional charge.

In exchange, these properties are lowering their nightly room rates by varying degrees, Mr. Morse said. His hotels trying out the pricing model include the TWA Hotel at John F. Kennedy International Airport and the High Line Hotel in Manhattan, he added.

Mr. Morse, chief executive of MCR Hotels, said a rocky transition period could occur before most hotel guests adjust to the idea of paying only for the services and perks they want. But he said the a la carte pricing approach is likely to be a hit over time.

"Not every guest wants every product, and they don’t want to pay for something they were never going to use anyway," he said. "Other owners are fully behind me, but there’s always a fear of change."

Hotel Business magazine last year ranked MCR as the fourth-largest hotel owner in the country by room count. The New York-based company currently owns nearly 20,000 rooms, Mr. Morse said.

It is impossible to know how many guests have sworn off MCR properties because of a dislike for the service charges, but Mr. Morse said his hotel staff reports few customer complaints related to a la carte pricing.

Still, numerous obstacles stand in the way of broad success for the pricing model. Most big hotel chains say they view it skeptically. The hotel industry is by nature slow to adopt significant changes, and many properties lack the technology to implement an a la carte pricing system. Airbnb Inc. and other short-term rental companies offer alternative lodging in most every market for any travelers who feel hotels impose too many fees.

But some hotel owners and operators say they have little choice but to shake things up. The pandemic decimated the industry in 2020. Just when business was picking up this year, chronic labor shortages and the Covid-19 Delta variant hit travel again. U.S. hotel revenue per available room, a popular industry metric, isn’t expected to return to 2019 levels until 2024, according to hotel data tracker STR.

At the same time, hotel owners have increased spending on sanitizing their properties to prevent the spread of disease. Hotels need to recoup those extra costs and losses, said Kerry Ranson, chief executive of HP Hotels, which manages about 30 hotels.

"And the only way to do that is to charge for things that are convenience items," he added.

The hotel industry has dabbled with a piecemeal-pricing approach before, and some lodging companies continue to do so. Many operators initially charged for Wi-Fi connections, and a number still add a fee for higher-speed service. Much of the industry is also moving toward a new housekeeping standard where service is offered daily only on request. Some hotel owners are experimenting with charging extra for it, industry executives said.

"It shows the consumer is willing to pay for it," Mr. Ranson said, "and for years we’ve been giving it away."

Mr. Ranson said he hasn’t implemented any of these practices yet because the hotels his company manages are affiliated with major brands. Big lodging brands such as Marriott International Inc. and Hilton Worldwide Holdings Inc. manage or franchise more than half of the 5.6 million hotel rooms in the U.S., and owners say they would need brand permission to implement this kind of change in the pricing model.

Brands are reluctant to put themselves at a disadvantage against their peers by charging for a popular service that a competitor provides free of charge, hotel owners say. Marriott Chief Executive Tony Capuano said guests would "push back" against an a la carte pricing model, and he is skeptical that most owners affiliated with his hotels would support it.

"We will continue to be influenced by what we hear from guests and partners," he said in an interview. "But it would be folly to have a knee-jerk reaction to what may be a vocal minority."

When airlines started to charge fees for checked luggage, passengers were irate. Members of Congress held hearings about whether to limit or ban the practice. But eventually customers grew to accept it, Mr. Morse said.

In 2019, airlines world-wide collected $75.6 billion in a la carte revenue, more than doubling what they collected in 2015, according to a study from the consulting firm IdeaWorksCompany and CarTrawler, a firm that works with car-rental and travel companies. A la carte revenue included fees for checked baggage, assigned seats, onboard meals and entertainment.

A shift to service charges with lower room rates would also save hotels money on reservations made through online travel agents, such as Expedia Group Inc. Those companies generally receive a percentage of the room rate booked on their websites, but wouldn’t collect fees a hotel owner charges on amenities at the property.

That extra revenue sounds good to Greg Friedman, chief executive of Peachtree Hotel Group, the owner and operator of about 65 hotels in the U.S. But he isn’t going to be an early adopter of the new pricing model.

"The whole industry, if the brands bought into it, everyone would accept it," he said. "But the challenge is, who would jump off the cliff first?"
Newsletter

Related Articles

0:00
0:00
Close
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
UK Signals Non-Involvement in Iran Conflict as Trump Reasserts Firm Deterrence Stance
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
×