Hotel group eliminates all room rates

Free rooms expected to return record profits

GENEVA, Switzerland -- In a surprise move to trump the competition, Traveller Hotel Group (THG), operator of 435 luxury resort and spa properties in North America, Europe and Asia, announced that it has completely eliminated charging for use of its guest rooms. "From here on out," said CEO Jean-Paul Chaphrau, "the price of all our rooms is zero. The rooms are free. Only a few fees will be added to a guest's bill on checkout."

It taking this unprecedented move, the company expects to increase its occupancy rate to nearly 100% and triple its revenues, which will be earned from a variety of incidental guest fees.

A source close to THG supplied the following partial list of fees associated with a typical free stay in a modest room at the company's property in Leon, France:

  • Reservation fee to book a room (€4)
  • Transaction fee to secure a reservation (€3)
  • Processing fee for use of a credit card (€3)
  • Security fee for guard services (€5)
  • Overnight parking fee (€18)
  • Activities fee for the use of the pool, exercise facility, and spa (€9)
  • Convenience fee for use of elevators, escalators, corridors, sidewalks (€7)
  • Utilities fee for electricity, water, heat, and air conditioning (€7)
  • Personnel fee to staff the hotel (€11)
  • Housekeeping fee for cleaning services (€15)
  • Resource replenishment fee for the consumption of any item (€5)
  • Sanitation fee to provide clean restaurant dishes, glasses, and utensils (€5)
  • Room service fee (per delivery) (€6)
  • Management fee to assign hotel employees responsibilities (€7)
  • Transportation fee for guests arriving by vehicle (€3)
  • Cleaning fee for guests wishing to bathe (€17)
  • Somnolence fee for sleeping (€27)
  • Facility fee for use of the building and its furnishings (€13)
  • Miscellaneous user fee for use of room not addressed by other fees (€8)
  • Upgrade fee for each level of upgrade from a standard room (€15 per upgrade)
  • Research fee for guest satisfaction surveys (€2)
  • Marketing fee for hotel advertising (€2)
  • Community service fee for on-going "good neighbor" programs (€3)
  • Administration fee for management staffing (€4)
  • Recycle fee for picking up recyclable waste (€3)
  • Reclamation fee for reuse of recyclable waste (€3)
  • Disposal fee for non-recyclable waste (€3)
  • Historical preservation fee for downtown historical society (€6)
  • Indigenous persons fee for sleeping within a previously occupied space (€4)
  • Health and welfare fee for French workers (€9)
  • Air quality impact fee for guests who breathe through their noses or mouths (€6)
  • Commercial trade-zone fee for any guest traveling on business (€11)
  • Water conservation fee for daily guest water allotment of one liter (€15)
  • Translation fee to provide services in English (€17)
  • Entertainment fee for use of the televisions, radios, and closed circuit broadcast viewing of guests as they check out of their "free" rooms (€12)

Additionally, city, district, regional, national, and value added taxes will be added as appropriate (typically 22 percent). So a one night stay, which used to cost €235, is now free with incidental fees being only about €351.


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"Such an arrangement," noted Mr. Chaphrau "is a win-win for our company and our customers. Well, okay, at least for our company, anyway.

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