One of the places in Honolulu where editor Rob likes to stay is the Alohilani. The rates are reasonably fair, the City View room he stayed in was nice, but without much view, the location is great, and the pool deck was trendy with a bar. Plus, a topped-rank coffeehouse, Kai Coffee, sits streetside facing the beach.
There were a few issues with the hotel, but honestly, it was what we just saw with our own eyes that just felt wrong. Sometimes, it isn’t even about the money but rather that feeling of being nickel-and-dimed to death.
This also seems strange since we’ve recently experienced a number of hotels have gone completely cashless in order to avoid all of the problems with that. This seems both cumbersome for the hotel and completely annoying for guests. Not to mention who really carries an additional $3k in cash around with them on a Hawaii vacation?
Alohilani Resort leads with bold new Hawaii hotel fee.
The Alohilani Resort is a mid-range, large Waikiki hotel with more than 800 rooms. It was rebranded from the Pacific Beach Hotel and opened under its current name in 2018. During the rebranding and redesign, the legendary two-story Oceanarium was saved.
Regarding the new surcharge, we were alerted to this by a comment from Mary, who reported:
“Last time I reserved a room 3 weeks ago, I understood that it is customary to reserve a hotel with a credit card, no? Here’s a new one for you in the fees department.
Please no! One of my favorite hotels, the Alohilani, now requires this:
Please Note: Effective March 3, 2023, a credit card processing fee of two percent (2%) will be assessed on all credit and debit card transactions relating to hotel guest stays, and charges throughout the property.”
So we headed back to the Alohilani website since we couldn’t quite fathom it. We know that credit card surcharges have been somewhat normal in many industries but in a large Hawaii hotel? It was a first, at least for us.
When checking, we confirmed the exact language that Mary was referring to.
It wasn’t immediately obvious but rather was found on the terms and conditions page, which is available prior to paying and after selecting your room. There were some other interesting points on that page:
- A valid credit card is required to guarantee and secure your online reservations. BOH: Okay, so I guarantee payment with my credit card, but in order to avoid the credit card surcharge, I bring cash to the hotel.
- Cancellation/Modifications/Non-Arrival Policy: If you cancel within 72 hours prior to arrival, you’ll pay for one night on our credit card BOH: That, plus 2%, of course.
- A daily resort fee of $48 will be collected upon our arrival. BOH: Bring cash.
- Tree fee: Optional $5 per room. BOH: Commenter Patrick said this is automatic unless you opt-out.
- “A credit card processing fee of two percent (2%) will be assessed on all credit and debit card transactions relating to hotel guest stays, and charges throughout the property. This fee will apply to both physical and virtual credit cards.” BOH: How about just making the price the price and being done with it?
How much does it add up to?
To be honest, for a one-week stay, the credit card charge below only added up to just over fifty bucks. So it isn’t about the money, although when added to the other ancillary charges, it was, we’d say, over the top.
We just decided to play with the numbers based on a 7-night stay based in low season (early May) and based on the “Best price per night” of $284. If you stay for 7 nights, including resort, fee, and credit card surcharge, here’s where you end up. The non-room charges end up amounting to a whopping 39% of the total bill.
- Room: 284.05 per night x 7 nights: $1,988.35
- Resort Fee (mandatory): $48 per night x 7 nights: $336.00
- Parking (optional): $48 per night x 7 nights: $336.00.
- Total for 7 nights before taxes: $2,713.56.
- Approx. taxes (17.92%): $486.27.
- Credit card surcharge on above: $64.00.
- Grand total: $3,263.83
Photo by Editor Rob at Beat of Hawaii during his stay at Alohilani.
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Melissa L says
Hello. What is a “tree fee” ?
CM says
Fes, fees and more fees. Its seems neverending.
Consider this as well: The total cost for the hotel for the week, $3263 USD, converts to $4351 CAD with our sad Canadian dollar.
Very sadly, I cannot even consider visiting Hawaii any longer. It is quite discouraging.
Mary D says
Thanks for posting this BOH! I was shocked to see it for myself…I travel to Maui and Oahu frequently, but I always read the fine print. It would be great if hotels would simply tell us the total upfront. Thanks for doing what you do!
Beat of Hawaii says
Hi Mary.
Thanks. We appreciate your numerous comments!
Aloha.
Michele B says
I thought it was against credit card policies to charge more for using a credit card??? You either adjusting pricing and accept it, or do not accept it at all??? I know stores will do it on transactions under a certain amount (which is still against their regulation). As a travel agent we thought about accepting credit cards directly, but did not because of this. Maybe in the new era of Square and the others this has changed?
Nancy J says
Mahalo for this analysis! Sneaky – burying it in the fine print. I think cc charge back will become more common especially for premium cards which give points, etc. Bank fees are high, especially for small businesses. For a Canadian, now add 35% exchange rate. Just returned from Maui where if you check out of your condo at 9 am, no street parking in Kihei, possible daily Beach fee even if you’re only there a few hours. We wandered all day til our flight left at midnight. I’d love to explore Hawaii more but just too expensive. I’ll view the beach cams and surfing videos on YouTube. Love your newsletter.
Beat of Hawaii says
Hi Nancy.
Thanks. Happy travels.
Aloha.
Andy says
No wonder that people have lived leaving hotels for more and often much nicer stays in home share properties. Hotels are simply just “asking” people to go elsewhere with their ridiculous fees… personally, I won’t ever book a hotel with a resort fee! Ever!
Linda K. says
Aloha. Thank you for the information. This is the reason we decided against a quick mid-week visit last fall. Too bad. We’ve been to Oahu three times prior, when it was much more affordable. Maybe another time.
bob d says
Your surcharges will end up being a 63% increase over your regular room rate. But that does include a completely ridiculous parking rate fee.
Patrick says
Anyone ever try doing a trail booking on one of the big OTA’s?
I see things like a “Utility” fee, a Tourism fee, Environmental fee, Conservation fee. These are from the OTA’s
I wonder how that gets worked into the Alohilani charges.
Ernie S. says
Amazing how quickly everything adds up! The 2% was the least of the assault against your wallet, thankfully they didn’t charge for the pool and towels. A few years ago I stayed at a Hotel which will remain nameless and when it came time to check out we were very surprised. The Bill was on the floor, passed under the door as usual, but a notice on it stated that If you want a live person to check you out it would cost $50.00. I have Never stayed with that hotel chain again. So, BOH, it could be much worse.
John R. says
You are killing Hawaii tourism !! Fee this Fee that …even the President said KNOCK IT OFF !!
Tim m says
Wow , that’s quite expensive for a week , have been staying in studio condo on the beach near the outrigger canoe club for a month every year and with taxes and cleaning fees it’s $4000 a month , actually right over the beach with great view of Waikiki beach across the water although just one mile away . What is the $5 a day tree fee? That $48 a day amenity fee is crazy , especially for people old enough to know why motel 6 is called motel 6. Yes , all rooms were $6 a night . When there are cruises this summer from California to hawaii and back (16 nights ) visiting 4 islands and for one person $2000 ( of course All the food you want and essentially a free hotel room on 4 islands ) these hawaii hotel rates are quite high
Marilyn S says
Which condo/building by the Outrigger? I may consider that in future. I don’t eat in waikiki on my yearly solo trip. I travel by bus which works out well, especially for senior ($1.25). Still my hotel (one back from ocean) is over $550 per night with fees. 10 nights is all I can afford! I would stay 3 weeks for $4,000!
Chris says
Vote with your pocket book and don’t go to this and other places like it. They’re moving into scam territory now. In fact skip HI altogether and go to Mexico. Mexicans want you there and they are the kindest people I’ve met in any country.
K C says
This is starting to happen all over not just in Hawaii. On a recent eight day road trip through Wyoming, Montana, and Colorado, we ate in more than one restaurant that added a CC surcharge. It’s somewhat understandable with all the crazy price increases over the last two years and no end in sight.
If it were my business, I’d avoid the word “surcharge” and just call it a “discount for cash”. Still annoying and they aren’t fooling anyone, but then I don’t feel like I’m getting nickel and dimed as bad.
Michele says
But a “discount for cash” is essentially the best way. They (the establishment) have increased prices across the board to account for credit card processing fees, so if you are paying cash – you should get a discount.
Ernie S. says
One would ordinarily expect this, however, we are speaking of the industry which values money, and political clout, above everything else. They might charge more for taking, the soon to not be reported, cash due to Safety and Security Concerns. In Hawaii there’s always the possibility of the unexpected at every Hotel and Resort. The Only places that I will pay in Cash are Food Venues, Vendors, and Roadside Smaller Businesses.
Brandon G says
All these companies starting to post signs saying 2% or 3% fee to use a credit card. It’s really starting to annoy me to the point on the last mini “steak of blazes” I just left. We pay 6 figures a year in credit card processing fees, it’s part of business.
SandyB says
We look at it as the cost of convenience. Pay us cash, and you don’t pay the fees Or taxes.
Bill W says
Right, a “convenience fee”, lol! Actually, it’s a convenient way for the business to pass through the credit card fees to the consumer on behalf of the business.
Christi S. says
Wow! Getting as bad as Vegas, some of the restaurants there like Beer Park charge a 4.8% concession fee. Valet parking used to be free, the buffets were cheap, lots of great deals and coupons, not anymore they nickle and dime you to death.
Hawaii is getting too expensive and they will end up killing a lot of tourism because of it. For us, it costs about $1000 a day with airfare, hotel/condo, car, food and activities.
Marcy O says
😳
Lisa says
Yeah, Hawaii is taxing us to death!
Pat C says
You are both the best when it comes to travel communication-not to say you are not the best at other things; however for myself I rely on you to give me the most current and factual information. Many many mahalos!
Beat of Hawaii says
Hi Pat.
Thank you! Where have you guys been – you’re missed.
Aloha.
Phil R says
I wish the Alohilani best of luck in the future. I guess I won’t be staying there anytime soon. Do the decision makers at the Alohilani understand the term “transparency”. Sheesh!