Travel Tips: Booking Hotels Online (PART 2: Is what you see what you pay?)

In the second part of our series on what to look for when booking hotels, we turn our attention to one possible source of annoyance among travellers: whether the price you see is what you pay.

Image Source: holidayinnklg/Wikimedia
In some countries, particularly those in Europe and Australasia, that is the case. By law, hotels in these jurisdictions are required to do the necessary calculations for you and include all taxes (e.g. Value Added Tax/VAT, Goods and Services Tax/GST, City Taxes) and surcharges in the advertised price.

In the Americas however, it is a different story. The advertised price is just the beginning and it's rather complicated to explain why this is the case.  A whole mirage of other charges exist right below it up to and including hotel imposed surcharges such as resort fees.

No matter where you book, whether with the hotel directly or through a third-party booking engine like Agoda, the practices of including or excluding taxes and other charges will largely be the same. However, if you are booking a hotel using a US-based website, it may still be possible that the initial advertised price may exclude all the charges even if you are booking a hotel found in a country where the practice is to include all charges.

When taxes and service charges are excluded from the advertised price, each country has its own regulations for what price will be subject to taxes or service charges (e.g. service charge to be applied as a percentage of the price after VAT, VAT to be applied as a percentage of the price after service charge, or VAT and service charge will each be applied as a percentage of the advertised price.)


To help you answer the question of whether what you see is what you pay, we have compiled a list of the practices found in various countries below to determine what the final price will likely be based on an advertised rate of $100 per night. Countries in bold are those where the advertised $100 rate includes all major taxes and surcharges. We have also included the tax rates just in case you're interested to know them.

  • Australia - $100 (10% GST included)
  • Brazil - $100 (5% VAT included)
  • Canada - Approximately $110-$120 (taxes excluded and vary per province)
  • Mainland China - $115 (no VAT; 15% service charge excluded)
  • European Union, Norway, Switzerland and Iceland - $100 (VAT included; though a few cities may choose to levy an extra city tax of a maximum of 4% or €4 on top of the advertised price) 
  • Hong Kong - $110 (no VAT; 10% service charge excluded)
  • India - $108-$125 (VAT and city tax excluded and varies per jurisdiction)
  • Indonesia - $100 (11% VAT and 10% service charge included)
  • Japan - $100 (VAT included)
  • Mexico - $119-$121 (16% VAT and city tax excluded)
  • Macau - $115 (5% tax and 10% service charge excluded)
  • Malaysia - $116.60 (6% VAT and 10.6% service charge excluded)
  • Nigeria - $100 (5% VAT and 10% service charge included)
  • New Zealand - $100 (15% VAT included)
  • Philippines - $120-$125 (12% VAT and service charge, which varies per hotel, are usually excluded; in a few cases VAT may be included in the price but the service charge will not)
  • Russia - $100 (18% VAT included)
  • Singapore - $118 (10% service charge, 7% GST and 1% government tax excluded; though smaller, lesser known hotels might provide you with an advertised price that already includes such charges. When this is the case, you will see the word "NET" affixed to the rate)
  • South Korea - $100 (10% VAT included)
  • Taiwan - $100 (5% VAT included) 
  • Thailand - $100 (7% VAT included)
  • United Arab Emirates - at least $120 (10% national tax, 10% service charge and city taxes not included) 
  • United States - approximately $115-140 (taxes excluded and vary per state and city; service charges, sometimes known as a resort fee are also excluded but levied at the hotel's discretion)
So as you can see a hotel rate advertised as $100 does not always mean that's all you have to pay. Depending on your destination, it could just be the beginning of a mirage of charges, and we are not even talking about extra or optional services like breakfast or WiFi yet, not even a booking fee.  So keep these caveats in mind when sorting out the financial bits of your upcoming trips.  

You can book a hotel from the PFN page.  Just click the link "Book Hotels" found on the menu of this website.  

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