Where Does the Hotel Service Charge go?

May 17, 2024

Service Charge: Understanding the Restaurant and Hotel Fees

Everyone has likely heard or seen discussions about service charges in restaurants. A recent Facebook post highlighted a customer’s dissatisfaction with a 10% service charge, questioning why they should pay extra when no additional service beyond food delivery was provided. This sparked a heated debate on the topic.

Similarly, most hotels in Thailand also implement a service charge. Many people may not notice this on their bills or understand what it entails. A "service charge" is an additional fee charged by service providers, including hotels, to customers. Legally, it is capped at 10%, a rate generally accepted by consumers worldwide.

Why Do Hotels Charge a Service Charge?

Hotels are in the business of providing services, not just room rentals. This charge covers additional services such as parking assistance, luggage handling, spa access, swimming pools, and restaurants. The service charge acts like a built-in tip, meaning you don’t need to tip the staff unless you want to reward exceptional service.

Where Does the Hotel Service Charge Go?

The distribution of service charges varies by hotel policy. Here are some common practices:

-Split into Two Parts: Staff’s duty and the rest is kept by the hotel for maintenance, bonuses, and other expenses.

-Staff Allocation: From the part allocated to staff, a small amount might be deducted for damages or breakages.

-Equal Distribution: The remaining amount is distributed equally among employees, though some hotels might deduct for absences or tardiness.

Some hotels distribute the total collected service charge equally among all employees.

Essentially, most of the service charge is allocated to the staff, following certain deductions determined by the hotel's policies. This "extra money" supplements the employees' regular salaries.

Credit: PPTV HD 36, Stay updated on hotel and travel news at: Blockdit - HotelSup

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