Do Consumers Consider Tax Rates?

While I don’t hear it as often as I once did, we’ve all heard hoteliers claim that they get tons of complaints about the room tax from guests checking-out. In over twenty years of checking out of hotels, I’ve never heard the person next to me pitch a fit about room tax.

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.