Understanding Taxes and Fees
Hotel bookings include various taxes and fees beyond the base room rate.
Quick Answer
Included in price: VAT, sales tax, occupancy tax, mandatory fees
Pay at hotel: City/tourism tax (in some locations)
Optional extras: Room service, minibar, spa, parking (not included)
Types of Taxes
VAT (Value Added Tax)
What it is:
- Sales tax on services
- Common in Europe
- Percentage of room rate
- Government mandated
Typical rates:
- UK: 20%
- France: 10%
- Germany: 7%
- Spain: 10%
- Italy: 10%
Included in PriceRoom prices: Yes
Sales Tax
Common in:
- USA
- Canada
- Some Asian countries
How calculated:
- Percentage of room rate
- Varies by state/province
- Set by local government
US examples:
- New York: ~14.75%
- California: 10-15%
- Florida: 11-13%
- Nevada: 12-13%
Included in our prices: Yes
City/Tourism Tax
What it is:
- Per person, per night fee
- Funds local tourism
- Fixed amount or percentage
- Common in Europe, Asia
Usually: Paid directly at hotel (NOT included in prepayment)
Typical amounts:
- Paris: €0.25-€4/person/night
- Rome: €3-€7/person/night
- Barcelona: €0.75-€3.50/person/night
- Amsterdam: 7% of room rate
Why separate:
- Local law requires hotel collection
- Cannot be prepaid
- Often cash only
- Direct to city government
Hotel Occupancy Tax
What it is:
- Tax on hotel stays
- Common in USA
- Percentage of room rate
- State and/or local
Included in our prices: Yes
Mandatory Fees
Resort Fees
What they cover:
- Pool access
- Gym/fitness center
- WiFi
- Beach chairs/umbrellas
- Daily newspaper
- Local calls
- Parking (sometimes)
How much:
- $15-$50 per night
- Common in resort destinations
- Las Vegas, Miami, Hawaii, etc.
Mandatory: Yes, can't opt out
Included in PriceRoom prices: Yes
Example:
Las Vegas Hotel
Room Rate: $100/night
Resort Fee: $35/night
Total shown on PriceRoom: $135/night
Service Charges
What they are:
- Gratuity/service fee
- Percentage of room rate
- Common in some countries
- Goes to hotel staff
Typical rate: 10-15%
Included in our prices: Yes
Cleaning Fees
Common for:
- Serviced apartments
- Holiday rentals
- Long stays
- Vacation homes
Usually:
- One-time fee
- Not per night
- $50-$200
Included in our prices: Yes
What's NOT Included
Optional Extras
❌ Breakfast (unless specified) ❌ Parking (unless stated as included) ❌ Airport transfers ❌ Room service ❌ Minibar ❌ Laundry ❌ Spa treatments ❌ Phone calls ❌ Movies ❌ Pet fees (if applicable) ❌ Crib/rollaway bed fees
Pay-at-Hotel Charges
Incidentals:
- Anything you use at hotel
- Billed to your room
- Paid at checkout
- Separate from booking
Additional Taxes (Sometimes)
In rare cases:
- City tax (as mentioned above)
- Local surcharges
- Special event taxes
We notify you if any taxes are payable at hotel!
Seeing the Breakdown
On Search Results
Price shown: Total including taxes and fees
Click "View Details" to see:
- Base room rate
- Each tax (name and amount)
- Each fee
- Total
On Booking Page
Full breakdown:
Grand Hotel - 3 nights
Room Rate: $100 × 3 = $300
VAT (20%): $60
City Tourism Fee: $9
Service Charge (10%): $30
─────────────────────────
Total: $399
*City tax €3/person/night payable at hotel
On Confirmation
Email shows:
- Complete price breakdown
- What's included
- What's payable at hotel
- Grand total
Regional Differences
Europe
Usually includes:
- VAT (shown separately or included)
- Service charge
- Occupancy tax
Pay at hotel:
- City/tourism tax (common)
United States
Usually includes:
- Sales tax
- Occupancy tax
- Resort fees
Pay at hotel:
- Rare (most prepaid)
Asia
Varies by country:
- Some include all taxes
- Others have local taxes at hotel
- Service charges common
- Government taxes included
Price Comparison Considerations
Total Cost
When comparing:
- ✅ Look at total price (inc. taxes/fees)
- ❌ Don't compare base rates only
- ✅ Check what's payable at hotel
- ✅ Consider all extras needed
Example comparison:
Hotel A:
$100/night base
+ $30 resort fee
+ $15 taxes
= $145 total
Hotel B:
$130/night base
+ $12 taxes
= $142 total
Hotel B is actually cheaper!
Hidden Fees?
PriceRoom shows:
- All mandatory charges
- Clear breakdown
- Payable-at-hotel items noted
- No surprises
We're transparent:
- Price shown = price you pay
- Plus only optional extras you choose
- Plus pay-at-hotel taxes (clearly noted)
Invoice & Expense Reports
Tax Breakdown
Your invoice shows:
- Each tax separately
- Tax ID numbers
- VAT registration
- Business-ready format
For Expense Claims
Receipts include:
- Accommodation cost
- Each tax itemized
- Total amount paid
- Dates of stay
Refunds & Taxes
If You Cancel
Refund includes:
- Room rate
- All taxes
- All fees
- Everything you paid
Same amount refunded as charged
Partial Refunds
Taxes calculated on:
- Refunded portion
- Pro-rated
- Fair and accurate
FAQ
Q: Why are there so many taxes? A: Multiple government levels (city, state, national) each have tourism taxes.
Q: Can I avoid paying taxes? A: No. Taxes are legal requirements.
Q: Why is city tax separate? A: Local law requires hotel to collect directly in many European cities.
Q: Are taxes refundable if I cancel? A: Yes, if booking is refundable, you get everything back including taxes.
Q: Do business travelers pay less tax? A: No. Same taxes apply regardless of purpose.
Q: Why are resort fees mandatory? A: Hotel policy. They're considered part of the stay cost.
Q: Can I see taxes before booking? A: Yes! Click "View Details" on any hotel to see full breakdown.
Tips
Budget Accurately
✅ Check total price (not just base rate)
✅ Read confirmation for pay-at-hotel items
✅ Add 10-15% buffer for incidentals
✅ Check meal costs if not included
Understand Your Bill
✅ Review breakdown before booking
✅ Note pay-at-hotel taxes
✅ Keep confirmation email
✅ Compare totals, not base rates
Need Clarification?
Questions about taxes/fees?
We'll explain:
- Your specific booking's charges
- Each tax and fee
- What's payable when
- Why certain charges apply