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Types of Fees and Their Functions

Rodolfo avatar
Written by Rodolfo
Updated over a month ago

Below are the main types of fees you can configure in the Hostay system or in another channel manager for vacation rentals or hotels.


1. Cleaning Fee

Purpose: Covers the cost of cleaning after check-out.
Charge: Fixed amount per stay.
Visibility: Shown to guests on most channels.
Recommendation: Do not embed in the nightly rate. Better to display it as a separate fee.


2. Pet Fee

Purpose: Covers additional cleaning costs or potential damage caused by pets.
Charge: Per night or per stay.
Visibility: Some channels allow it (such as Airbnb).
Recommendation: Enable only if pets are accepted.


3. Administration Fee

Purpose: Covers management, reception, check-in/out, and customer support costs.
Charge: Fixed amount per stay.
Visibility: Depends on the channel; may be included in the rate.
Recommendation: Use if working with a property management company or concierge service.


4. Bedding / Towels Fee

Purpose: Covers laundry and maintenance of linens and towels.
Charge: Per guest or per stay.
Visibility: Few channels allow it separately.
Recommendation: Consider including it in the nightly rate if not allowed separately.


5. Utilities Fee (Water/Electricity)

Purpose: Covers utilities usage such as water and energy.
Charge: Per night or based on consumption.
Visibility: Usually cannot be highlighted separately and must be included in the rate.
Recommendation: More suitable for longer stays.


6. VAT / ISS (Service Tax) — Booking Only

Purpose: Compliance with tax legislation (ISS in Brazil, VAT in Europe).
Charge: Percentage of the total booking amount.
Visibility: May be displayed or included, depending on the channel.
Recommendation: Always consult local tax laws or an accountant.


7. Municipal Tax — Booking Only

Purpose: Mandatory charge required by some local governments.
Charge: Per night or per guest.
Visibility: On channels like Booking, can be added as a separate fee.
Recommendation: Apply only when legally required.


8. Tourism Fee

Purpose: Charged by tourist destinations to support local infrastructure.
Charge: Per guest, per night.
Visibility: On channels like Booking, yes. On Airbnb, usually included in the price.
Recommendation: Clearly mention it in the listing description.


9. Resort Fee

Purpose: Covers the use of shared amenities (pool, spa, gym).
Charge: Per guest or per stay.
Visibility: May be displayed as an extra fee.
Recommendation: Apply only if the property has resort-style facilities.


10. Parking Fee

Purpose: Covers the use of a private parking space.
Charge: Per night or per stay.
Visibility: Varies by channel.
Recommendation: Specify whether it is optional or mandatory.


11. Security Deposit

Purpose: Guarantee against damages caused by the guest.
Charge: Pre-authorized, not immediately collected.
Visibility: Displayed on channels like Airbnb and VRBO.
Recommendation: Have clear rules for its use and refund.


Practical Summary

Fee

Type of Charge

Example Value

Visible to Guest?

Cleaning

Fixed per stay

R$ 150

Yes

Pet

Per night or stay

R$ 50 per night

Yes (in some channels)

Administration

Fixed per stay

R$ 30

Yes (in some channels)

Bedding/Towels

Per guest/stay

R$ 20 per guest

Not always

Utilities

Per night

R$ 10 per night

Usually included

VAT / ISS

Percentage

5% of total booking

Depends on the channel

Municipal Tax

Per night

R$ 3

Yes (e.g., Booking)

Tourism

Per guest/night

R$ 2

Yes

Resort

Per guest/stay

R$ 50

Yes

Parking

Per night

R$ 20

Yes

Security Deposit

Fixed amount

R$ 500 (pre-author.)

Yes (Airbnb, VRBO)


Practical Exercise

Set up your property’s fee structure considering:

  • Location: Is there a legal requirement (e.g., municipal or tourism tax)?

  • Target audience: Do you accept pets? Is it a luxury/tourism market?

  • Facilities: Do you provide linens/towels? Is parking available?

  • Pricing model: Do you prefer an all-inclusive price or itemized fees?

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