To avoid overpaying for travel, customers should beware of hidden fees that airlines, hotels and vacation rentals can add onto the initial booking price. Travel companies use a method called “drip pricing” to get customers to pay more. Hotel resort fees are one of the most egregious examples that usually aren’t shown as part of the nightly rate. Travelers can avoid some fees by skipping or declining fees, like paying to select a seat. Otherwise, they’ll have to shop around—instead of choosing the cheapest initial price—and compare the total costs with fees before booking.
With travel prices soaring, customers might be tempted to pick the cheapest base option they find. But the base price of airfare and hotels represents only a fraction of the total costs. A parade of add-on fees await any traveler trying to navigate the checkout process, ballooning the final price. Experts call it “drip pricing.”
“It’s called ‘drip’ because surcharges and fees drip out throughout the shopping process,” says Vicki Morwitz, a professor of business and marketing at the Columbia Business School.
