With hotel prices so high, a little something extra never hurts

It’s no secret that guests are paying more for their hotel stays these days.

But according to Robyn Mark, partner at New York-based Mayamaya Travel, most of her luxury clients aren’t “batting an eye” when it comes to ponying up for high-end properties.

“We’ve never seen this kind of spending before,” said Mark. “And it’s not that the number of bookings has increased but that our revenue has grown so much because the price of hotels has increased significantly.”

However, where Mark does occasionally hear client murmurs of discontent is in the area of ancillary costs. 

“Sometimes the complaints do come in because someone’s like, ‘Well, I liked that hotel, but I’m not going to go back, because I couldn’t believe how expensive lunch was every day at the beach,’” she said. 

For example, Mark said that a pair of honeymooning clients had no qualms about extending their stay at a safari property that runs from $4,000 to $4,500 per night, but when it came to adding the hotel’s airport transfer service, they balked at the price, opting to use Uber instead.

“After paying crazy prices for just a room, it can be harder to stomach other pricing that you see broken out like that,” Mark said. “There’s just something in our psyche that reacts [negatively] to that.”

And it’s not just a combination of strong demand and inflationary pressures driving hotel rates ever higher. Guests are also being hit by resort fees and other pesky charges buried in the fine print, which can drastically increase a hotel’s nightly cost.

While sticker shock for hotel add-ons remains prevalent, properties are increasingly aware that guests, even the most well-heeled ones, feel like they are being “nickeled-and-dimed.” In an attempt to mitigate that, a growing number of high-end hotels are enhancing their value proposition by bundling various inclusions into their nightly rate, whether that means a hearty breakfast spread, roundtrip airport transfers, an all-inclusive minibar or daily afternoon tea.

Many advisors applaud the inclusions, saying that complimentary extras provided to their luxury clients are always a nice perk.

“People are definitely cognizant of the fact that they’re already paying for a very expensive room,” said Nancy Deane, a luxury travel advisor with Fora X. “And the costs once you’re on property are also soaring, so guests can sometimes be surprised by some of those added expenses. But when hotels can take away that feeling that everything is an add-on, it can be a much more elevated and elegant approach.” 

Mark agreed, adding that while included extras may not be the sole reason a client books a hotel, they can significantly boost guest satisfaction, especially amid periods of higher-than-usual hotel pricing.

“People may not choose a hotel just because of that complimentary amenity, but when they check out and they’re not charged for some things, it does make them remember that stay in a different way,” Mark said, adding that even prior to the pandemic, she had noticed a trend toward more hotels making minibar offerings complimentary.

“It’s just a nice thing to do when you’re at a certain level and people are spending a certain amount to stay there,” she said. “And it really costs the property so little to make the chips and snacks complimentary. Most people won’t eat it, but for those that do it’s such a nice perk to know that you can actually grab those M&Ms and not be charged $8.”

On the house

Quite a few upscale properties have long made extensive inclusions part of their offerings. 

Since its debut in 2015, The Ivy in Baltimore has embraced a sense of generosity as a cornerstone of its luxury experience. The 17-room boutique hotel, which is housed in what was a 19th century mansion, markets itself as a highly inclusive hotel, with amenities like valet parking, a chef-made breakfast, on-site activities, daily afternoon tea and private car service to most destinations in the city included in the nightly rate.

“We decided that we’d design the experience like you were staying at the home of your worldly friend who has this incredible house, and with that, we decided it would be a generous friend, so you don’t have to think about what each item is going to cost,” said Rob Arthur, general manager at The Ivy. 

“Our world of luxury is taking the thought process out of it for the guest and just letting them sit back and enjoy without thinking about what each extra is going to cost along the way.”

Arthur estimates that upwards of 75% of The Ivy’s guests take advantage of four to five complimentary amenities per day, with many opting to take the hotel’s private car to a nearby museum or making it a point to be back on property in time for afternoon tea at 2 o’clock. 

“I think the expectation is, especially these days, that the rate needs to be justified,” Arthur added. “Today’s guests who can afford luxury are tired of being nickeled-and-dimed, and I believe we’ve been way ahead of the curve on that.”

Another luxury property famous for its highly inclusive model is the Post Ranch Inn in Big Sur, Calif. Open since 1992, the 40-room hotel includes in its nightly rate a minibar with wine, daily made-to-order breakfast at its Sierra Mar restaurant and a variety of activities, including yoga, forest mediation and a Chef’s Garden tour.

And while these inclusions have long been part of the Post Ranch Inn experience, Stephen Andrews, vice president of marketing and sales for the property’s parent company, Passport Resorts, said that they’ve become more pertinent to the guest experience in recent years.

“We have certainly seen a change in pandemic-era guest expectations,” said Andrews, who credits the property’s many inclusions with helping to maintain the Post Ranch Inn’s relatively high percentage of repeat business.

“Consistently, our guests say that the value proposition created by the service offerings and amenity inclusions at Post Ranch sets us apart from any of the luxury properties in our competitive set,” he said, adding that guests “prefer to return to a property where they are treated like family.”

Over in Europe, the J.K. Place brand has garnered a reputation for exceeding expectations via included extras across its Rome, Paris, Milan and Capri properties. 

At the 27-room J.K. Place Roma, for example, guests are greeted with complimentary welcome drinks, and a la carte breakfast is included throughout their stay. Access to the property’s fleet of e-bikes is also complimentary and, according to general manager Maria Strati, the J.K. Place Roma takes great pride in showering guests with arrival and departure gifts. These gifts may include a bottle of prosecco or red or white wine, depending on a guest’s preference; a signature J.K. Place baseball cap; or, for the traveler checking out and heading to the coast, perhaps a bottle of sunscreen. 

Sometimes, guests are treated to more elaborate gifts to celebrate special occasions. Strati cited a mother and daughter duo who have frequented the hotel in the past and were visiting Rome to pick up the daughter’s wedding dress. As an early wedding present, Strati gifted the pair a set of Tiffany Champagne glasses.

“Being small and boutique, we feel more like a home,” said Strati. “And when you come, it should feel like you’re visiting a friend’s place and that they really want to take care of you and personalize your stay.”

Ramping up inclusions

To meet elevated guest expectations, some hotels and resorts are ramping up their focus on inclusions this year. 

The 151-room InterContinental Dominica Cabrits Resort & Spa, which made its debut last year, created a Luxperiences program, under which guests booking the property’s higher-tier suite, penthouse and villa accommodations are granted a variety of add-ons. Those staying in the property’s Emerald Pool Suite, for example, get airport lounge access and an airport transfer as well as a rum tasting at the resort included in their rate, while guests who have shelled out for a stay in the Cabrits Penthouse can add a cooking class.

“The overall industry has seen a marked increase in expectations among luxury travelers due to the current global economic environment,” said Pascale Selwan, general manager at the InterContinental Dominica Cabrits Resort & Spa, adding that the inclusions are likely to help distinguish the resort from competitors.

Likewise, ANI Private Resorts is beefing up its all-inclusive approach this summer, launching an array of seasonal programming at its properties throughout Anguilla, the Dominican Republic, Thailand and Sri Lanka — all of which is included in the rate. 

At the ANI Anguilla, for example, guests with PADI certification who are staying five nights or longer can partake in a special diving experience, which includes a half-day use of a private boat, with space for up to 12 people, including six divers, and all diving equipment.

At the ANI Thailand, the rate for those staying five nights or more includes the option to take private Muay Thai boxing lessons as well as tickets to see a professional Muay Thai match in Krabi.

Guests at sister property ANI Dominican Republic can opt for complimentary kitesurfing sessions, while at the ANI Sri Lanka, tailored wellness programs created by an Ayurvedic physician are offered at no extra cost.

Yeshi Phuntsho, CEO of ANI Private Resorts, said the included summer activities have been warmly received by the trade, with the company already contemplating the potential rollout of a fresh batch of included activities for the coming year.