My friend Dave Bratton recently asked questions about the impact of Room Tax on the decision making process in Destination Analysts’ latest “State of the American Traveler” Study. Only 16% of travelers say they consider the rate of tax when considering a destination...and just under 15% say they have elected not to overnight in a destination because of the rate of the tax.
Those are fairly low numbers for something that many hoteliers would like others to think is pervasive. However, losing 1 in 7 potential guests in any economy is something to be avoided.
Another reason for smart destinations to withstand the tantalizing temptation to raise room taxes to cover general fund shortfalls.
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