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.
Customers tend to overpay when prices are presented this way, according to a study conducted by Morwitz and her colleagues.
"Customers are more likely to select an option that looks cheaper upfront. Even when they later realize it's more expensive than they anticipated, they're more likely to stick with it," she says.
From resort fees and boarding-pass printing fees (yes, that's a thing), companies were padding their bottom lines with these add-ons even before inflation soared this year. Avoiding them requires diligence and know-how.
HOTEL RESORT FEES
Resort fees, which are sometimes called "facility fees" or "destination fees" purportedly cover amenities like internet and pool access. But because the fees are mandatory, they act as hidden costs for booking a room that don't appear until final checkout.
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