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Hotwire "Tax recovery charges + fees"?


asus389
By asus389,
in

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Can anyone tell me how Hotwire calculates "Tax recovery charges + fees"?  For example, I was looking at booking a hotel on their site in Incline Village, NV.  I know its the Hyatt because it is the only 4 star property in that specific area.  The "retail" rate is $179 and Hyatt confirmed that there is a 13% tax on hotel rooms.  So the taxes are $179*0.13 or $23.27.  This is what the Hyatt web site says as well as Hotwire's non opaque pricing for this hotel.  

 

When I look at their "Hot Rate" opaque listing, the quoted rate is $85 but the "Tax recovery charges + fees" are $20.65 instead of the expected $11 ($85*0.13)!  Thats %17.55 of the quoted rate.  In addition, the Hotwire site states and Hyatt confirms that the taxes paid should be based on the discounted base rate (the rate hotwire pays for the room), so in theory it should be even lower.  

 

I got stonewalled hard when I called Hotwire customer service and asked how their fees work.  They told me that the "Tax recovery charges + fees" are given to them by the hotel, and they don't have any influence.  They explicitly denied adding booking fees to that number.  But clearly that is not the case here.  Are they stuffing their booking fee/commission in this "+ fees" part of the price?  What accounts for the difference?  

 

thanks!

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As per the line item:

Tax recovery charges + fees

So yes, it does include their booking fee.

Don't focus on how much HOTWIRE is/isn't making (or what percent of the total it is)... if you're happy with the total rate and it's a good deal, then book it; if not, then book elsewhere (likely at a higher price).

Sometimes it costs money to make (or save) money. ;)

Please use the PRICELINE and HOTWIRE links on the board to begin your travel purchases.

Let us know whatever you decide to do for this stay (and report the details of your win if you do ultimately book thru HOTWIRE) OR if we can be of further help with your Incline Village, NV.

Please use this HOTWIRE and these PRICELINE LINKS: HOTELS, CAR RENTALS, and AIRFARE to begin your travel purchases

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