Why Hotels Aren’t Making a Killing on Fees Like the Airlines

Love it or hate it, the fee-based business model appears to be here to stay for airlines. But the hotel business is a different story.

Airlines, as even casual fliers are well aware, have been piling on fees for years. U.S. carriers collected more than $6 billion in baggage and reservation change fees last year, an all-time high. For a particularly fee-crazy carrier such as Spirit Airlines, roughly one-third of revenues come from fees—seat reservations, carryon and checked luggage, bottled water—rather than money paid strictly for flights.

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