Home Publisher's Point of View Given Their History, Are Energy Surcharges Such a Wise Idea?

Given Their History, Are Energy Surcharges Such a Wise Idea?

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When the Jamaica Hotel & Tourist Association (JHTA) announced last month that it would support energy surcharges of up to $10 per night at its member hotels, almost immediately a flurry of statements were issued by hoteliers in that country. What did they say? No, we’re not going to do it. It was if they were caught off guard. “This is not a charge we want to pass on to our guests,” said Richard Whitfield, managing director of Jamaica’s luxury Half Moon resort, in an article in Caribbean Travel News. Ian Kerr, Sunset Resorts’ managing director, told Travel Weekly: “We have decided not to pass this charge along to our guests at this time. We will become even more committed to overall energy efficiency and conservation.”

I was surprised to learn these types of surcharges still exist in our industry. According to JHTA, however, “The Bahamas has had a surcharge in effect for many years.” It was seven years ago when many of the major chains began to tack on surcharges in response to rising energy costs. It was a public relations nightmare. Oftentimes, guests would not learn about the extra charge until checkout time. At a time when occupancy and room rates were taking a dip, some thought the surcharges were an appropriate way to cover costs while still offering a competitive rate. Consumers reacted by bringing class-action lawsuits against many of the leading hotel companies. It was not a pretty scene.

One attorney said at the time: “When people are given a room rate, it should include all mandatory charges.” No kidding. Apparently, some in our industry have a short memory. I put in two calls to JHTA to try to chat with the organization’s president but I did not hear back. Doesn’t it just make sense to build energy costs, like any other costs, into the advertised rate? Also, doesn’t the Half Moon resort’s approach to more effectively manage energy consumption make more sense? Instead of tacking on a surcharge? Tacking on an extra fee is a lazy approach to energy and cost management.

At Half Moon, the 400-acre, five-star property experienced a 5 percent decrease in its energy bill in 2007 thanks to measures such as lighting retrofits, solar water heaters and regular servicing of equipment. Moving forward, the resort intends to encourage guests to reuse towels and linens, turn off lights, and turn down air-conditioner settings when leaving the room. These are just a few of the things the resort and all other properties could do to reduce energy consumption.

It may not be long before the entire lodging industry is faced again with the energy surcharge temptation. Smart owners and operators will implement the technologies, products and processes to make them unnecessary. Surcharges caused a mess seven years ago. They should not happen again. I would love to learn your thoughts.

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