City tax is a municipal levy per overnight stay that the hotel collects and passes on to the local authority.
City tax is a municipal levy per overnight stay that the hotel collects and passes on to the local authority.
Also called: Tourist tax, Occupancy tax.
How it works#
It is therefore not hotel revenue, and in many cities it falls due on award stays too, because it attaches to the night rather than to how it was paid. Rates and basis differ by municipality, sometimes per person per night, sometimes as a percentage of the room rate. Displayed booking prices frequently omit it, so it appears at the front desk.
Not to be confused with#
City tax is not the same as a resort fee: the hotel keeps a resort fee, whereas city tax goes to the municipality.
In German#
The German term is Kurtaxe. German version of this term
Related terms#
- Resort fee: A resort fee is a mandatory daily hotel charge for bundled amenities, added on top of the room rate that was displayed.
- Drip pricing: Drip pricing is a sales practice in which mandatory costs only become visible step by step during the booking process.
- Vacation rental: A vacation rental is an apartment or house let out short-term by a private or commercial host and booked through a platform rather than a hotel desk.
Articles that use this term#
TopicEvery article and term onCards and money.