Are You Charging for Convenience or Frustration? Rethinking Hidden Fees in Tourism Pricing Strategy.

One of the major questions I am asked by tourism operators is ‘How should I set my pricing?’

There’s obviously a lot of work that goes into that, including analysing your costs, competitor analysis, customer feedback, compliance, added value etc but it got me thinking about some of the other pricing practices I see as I travel around.

As tourism operators, we all want to deliver incredible experiences—ones that leave guests raving about our service and eager to return. But sometimes, small frustrations can chip away at the magic. Hidden fees, unexpected charges, or basic conveniences being treated as ‘extras’ can turn what should be a seamless experience into a source of annoyance.

So, how can we rethink these touchpoints to create delight rather than disappointment? Let’s look at some common pain points in travel and explore ways operators can turn them into moments of joy.

Room Service Should Feel Like a Luxury, Not a Surcharge

Imagine a guest unwinding in their hotel room after a long day of exploring. They order room service, expecting a bit of indulgence—only to find an extra delivery charge on the bill. It’s a small thing, but it shifts the moment from ‘luxurious treat’ to ‘nickel-and-dimed.’

Instead of adding a fee, why not build the cost into the menu pricing? Better yet, consider offering free delivery for premium rooms or frequent guests as a way to elevate their experience.  I mean, how else do you get your room service? It’s hardly an ‘optional’ service to have it delivered.

The Resort Fee Dilemma—Do Guests Feel the Value?

This isn’t that common in New Zealand but I do see it as I travel around the world, and always wondered what the point of it was.  Resort fees are one of the most common guest frustrations. A daily charge for using the pool, gym, or other amenities can feel sneaky—especially if the guest didn’t know about it upfront. Instead of tacking on a separate fee, think about how you communicate value.

Can you highlight the exclusive perks guests receive? Better yet, consider creating opt-in packages where guests can choose amenities that matter to them, rather than feeling forced to pay for things they might not use.

Wi-Fi Should Be a Basic Right, Not an Upsell

There’s nothing that frustrates guests more than arriving at a beautiful hotel or café, only to find out they have to pay extra for Wi-Fi. In today’s world, connectivity isn’t a luxury—it’s an expectation.

Instead of charging for it, why not make fast, free Wi-Fi a key selling point? Promote it as part of the guest experience, ensuring visitors can share their moments instantly (which, by the way, is free marketing for you!).

Baggage, Seating, and Travel Fees—The Art of Transparent Pricing

Airlines and transport providers often charge for things that feel essential—like checking a bag or selecting a seat. While upselling premium options makes sense, the key to guest satisfaction is transparency.

Rather than surprising customers with fees at checkout, why not bundle common costs into the advertised price? A ‘no surprises’ fare might be more appealing than a seemingly cheap ticket that balloons with add-ons.

Check-In and Check-Out: A Chance to Impress

Charging for early check-in or late check-out can feel like an inconvenience, especially when rooms are available. Instead of making it a transactional exchange, why not turn it into an opportunity to delight?

Hotels that offer flexible check-in times for loyalty members or off-peak travellers often create a sense of goodwill. If there’s a cost involved, framing it as a ‘relax a little longer’ package with added perks (like a coffee voucher or spa access) can make it feel more like an upgrade than a penalty.

In-Room Extras: Small Touches That Make a Big Difference

We’ve all been there, reaching for a bottle of water in the hotel room, only to see a price tag attached. Or discovering a charge for using the in-room safe. These small fees might generate a bit of extra revenue, but they also leave guests feeling like they’re being charged for basics.

Consider offering complimentary bottled water or bundling convenience items into the room rate. It’s a small cost but can make a big difference in how guests perceive your hospitality.  I always feel delighted seeing a complimentary bottle of water, and bonus points if it’s sparkling!

Car Rentals and Tour Bookings—Making Add-Ons Feel Like Upgrades

Car rental agencies are notorious for upselling insurance, GPS, and other add-ons at the counter—often leaving customers feeling pressured rather than empowered. Instead of making these feel like last-minute expenses, why not offer ‘peace of mind’ packages upfront?

For tour operators, rather than charging booking fees, consider adding value through VIP perks—like priority access or an exclusive behind-the-scenes experience. When guests feel like they’re getting something extra rather than just paying more, they leave with a much better impression.

The Power of Thoughtful Pricing

At the heart of all these examples is a simple truth: pricing strategy is part of the customer experience. When guests feel like they’re getting great value, they leave happy. When they feel like they’ve been caught out by hidden costs, it leaves a sour taste.

So as tourism operators, let’s ask ourselves: are we charging for convenience or frustration? Can we shift our thinking to create moments of delight rather than disappointment?

Because when you design your pricing and extras with the guest experience in mind, you don’t just make more sales—you build more loyal customers. And in the end, isn’t that what every tourism business is striving for?

Over to You

Have you found a clever way to turn a common fee into a guest delight? Or have you been caught out by a frustrating travel charge? Let’s chat in the comments below!