Pelland Blog

All-Inclusive vs Resort Fees

January 25th, 2023

Several years ago I encouraged campground owners to consider the “all-inclusive” approach to guest fees, and that argument continues to make more sense than ever. I mentioned at the time how I had recently opened a box of breakfast cereal, only to find that the inner bag of contents reached about half the height of the packaging. It was a classic example of the disclaimer that warns us that “contents are sold by weight, not volume”. If the packaging properly matched the size of its contents, it would have been half the size, have far less visibility on the supermarket shelf, and I probably would have passed on a purchase that did not appear to represent a very good value. You might say that I was deceived into making the purchase. Even though I liked the cereal, I am unlikely to purchase it again. Economists have even coined a new word for this package downsizing: Shrinkflation.

Respect Your Guests’ Intelligence

People who feel that they have been somehow deceived into making a buying decision are almost never going to be return customers. When it comes to the outdoor hospitality industry, one of the biggest complaints is when guests feel like they are being “nickeled and dimed” during their stay. Although it is far preferable to avoid the imposition of add-on fees for incidentals like showers, Wi-Fi, or your planned activities, it is very important that any such fees be fully disclosed at the time of reservation. Just as offensive is the imposition of so-called “convenience fees” when making an online reservation, as well as the recently introduced concept of the “site lock” fee. In the latter instance, campers must pay a premium at the time of reservation in order to be assured of being assigned any particular site. The logic from a management perspective is that the airlines have generally been getting away with this for several years now, allowing passengers to choose an available seat rather than settling for a randomly assigned seat (often a center seat and/or in the back of the economy class section of the cabin), and there are almost always premium fees involved. These ancillary fees, which for airline seating range anywhere from $20.00 to $90.00 (according to a 2022 report by CBS News) are pure profit. There is little of no cost involved in providing this alleged service.

My best advice is to bundle as much as possible into your basic fees, promote that value within your rate structure, and stop presuming that people are comparison shopping for price without reading the fine print. Would you rather cater to guests who will complain about spending anything over $25.00 for a night of camping or guests who are more than willing to spend $250.00 for their camping experience?

Consider the All-Inclusive Approach

I suggest trying to avoid the growing practice of hotels to tack so-called “resort fees” onto their room rates. Across the hotel industry, even low-end properties have started imposing mandatory added fees for everything from poolside towels to room safes to fitness centers to on-site parking – even if a guest uses none of those services. To the contrary, I suggest offering your guests as much as possible as part of your service offerings. I believe the answer could be the all-inclusive concept, where guests are willing to pay a premium for the privilege of avoiding add-on fees. The all-inclusive concept originated with Club Med way back in 1950. It is the rule rather than the exception in some vacation destinations, and the concept has been embraced by many resort operators, cruise lines, travel agencies and online booking companies, major airlines, hotel chains, and wholesale buying clubs like Costco.

With all-inclusive pricing, as the name implies, guests willingly pay a premium fee for the privilege of vacationing without having to pull out their wallets throughout the course of their stay or when settling their tab. All-inclusive pricing is most popular with destination resorts and highly competitive, saturated tourism markets. Probably the best known and most broadly marketed of these practitioners is Sandals Resorts International, which promotes the tagline of “more quality inclusions than any other resorts on the planet”. Their all-inclusive stays include accommodations, dining, wine and spirits, golf, water sports, scuba diving, land sports, and entertainment. Even here, there are fee-based options such as spa treatments, premium wines, and scuba certification, as well as some restrictions on golf that vary from one resort or level of accommodations to another. The bottom line is that guests feel that they are being offered far more than they would otherwise expect.

Another relatively new company in the travel and tourism industry is Scenic Luxury Cruises. The company takes the all-inclusive concept to its pinnacle, where there is virtually nothing that you can pay for beyond your basic fare, unless you insist upon purchasing rare bottles of vintage wine while dining. Everything from gourmet meals, unlimited beverages, stateroom mini-bars (replenished daily), shore excursions (some of which must be reserved in advance on an availability basis), electric bicycles, onboard entertainment, laundry service, butler service, transfers and gratuities is all included.

Before you think that what applies to a luxury cruise line or luxury resort cannot possibly translate into the camping experience, think again. When I first wrote on this topic, a Google search for “all-inclusive glamping resorts” came up dry. Today, there are many compilations of luxury glamping vacations on sites such as GlampingHub, RVshare, and TripAdvisor. There are also individual campgrounds such as Camp Aramoni, in Illinois, which seem to have perfectly embraced the concept.

I have no connection whatsoever with the business other than my admiration, but I encourage readers to visit the Camp Aramoni website to discover how things can be done right. This is certainly a very viable segment within an ever-expanding outdoor hospitality industry. With the growing popularity of “glamping”, it is time to ditch extra fees for activities and recreational amenities such as mini golf, jumping pillows, canoes and kayaks, splash pads, showers, Wi-Fi, and online reservations. Then consider offering amenities and experiences that you may have never associated with traditional camping, such as the glamping tents at Camp Aramoni that feature luxury linens, central air conditioning and heat, USB charging stations, firewood bundles, and en-suite restrooms that include towels, hair dryers, and toiletries. Their basic fees also include a breakfast buffet, nightly gourmet s’mores, and dinner ordered from an extensive chef-inspired menu. In addition to the restaurant, the property includes an event space for weddings and other special events … all in a reclaimed former industrial property. The impossible has suddenly become possible. The key to growth in the family camping industry has always been to draw in a new wave of guests who do not currently consider themselves campers. To reach them, offer them the unexpected and create the perception of overwhelming value that they have come to appreciate elsewhere. An all-inclusive approach to pricing may prove to be an idea whose time has come.

This post was written by Peter Pelland

The Latest Scams: Be Alert, Don’t Get Hurt

January 20th, 2023

Sometimes I think that the Internet was invented by P.T. Barnum, the circus promoter and showman from New Haven, Connecticut. A century and a half after his heyday, modern-day hucksters seem intent on capitalizing upon the phrase “there’s a sucker born every minute” that is commonly attributed to the great Barnum. So-called phishing scams arriving via email are becoming more prevalent than ever. Phishing is an attempt to steal personal information or hack online accounts through the use of deception. Some are easy to spot, while others are more sophisticated in appearance and subsequently more difficult to detect. The people behind these schemes prey upon our fears and try to convey a sense of urgency to their bogus messages. My main words of advice are to step back, take a deep breath, and avoid the urge to panic.

Learn to detect and comfortably ignore the lion’s share of these scams by using an effective spam blocker on your email accounts. When a few slip past the filters and appear in your inbox, take a close look. Learn to hover and not to click. Is the actual sending address what it appears to be? One of the latest phishing scams to be making the rounds is the “Best Buy / Geek Squad Service Renewal” invoice. I will refer to three specific emails below, all alleging to be sent from Geek Squad (or in one instance “Geeks Squad Inc.). The first came from edfg0823@gmail.com, the second indicated that it came from messenger@messaging.squareup.com (and included an option for payment through Square), with a 160-character cryptic reply-to address, and the third came from dayaguena@gmail.com.

Although it is easy to attach any corporate logo to an email, in an effort to make the message appear to be authentic, would that familiar company really send out a message with spelling mistakes and sloppy formatting? Just because a message implies that your bank account, credit card, or PayPal account has been charged for a product or service that you never ordered does NOT mean that the sender actually has access to your account. What they are generally hoping is that you will fall for their scheme, want that alleged charge to be reversed, and unwittingly provide them with your account information in order to confirm the “refund”. By doing so, you will have then provided the scammer with the means to run up fraudulent charges on your account far in excess of the bogus charge that caught your attention.

The perpetrators behind the “Best Buy / Geek Squad Service Renewal” scams could possibly have access to Best Buy customer emails harvested during a 2017 data breach that exploited a vulnerability in the company’s online chat software; however, it is more likely that the senders use random email accounts under the presumption that a significant percentage of recipients will be recent or past Best Buy customers. (They could also be pretending to represent Walmart, Costco, Target, or any other well-known brand with an extensive customer base.) I have received several of these emails recently. One lists an “Order ID”, “Product Code”, and renewal fee of $417.00 that is ready to be charged to my account, telling me that “YOUR SERVICE HAS BEEN RENEWED”. The email (which consisted of a JPEG image) also reads, “According to our contact with you. Your plan will be auto renewed with in 24hrs and you will be charged $417.00”. The punctuation errors alone in that message should raise several red flags. Of course, they are hoping that I will call the “Customer Support Team” using the toll-free number included.

Another alleged “Geek Squad Subscription Renewal” was convincingly professional in its appearance, including a PDF invoice for a “Geek Squad Advanced Protection – Annual Plan” renewal at $229.99. It claimed that my “account” had just been charged, and included a toll-free number to call “if you want to cancel the Renewal and claim the refund.” The telltale signs on this invoice were the salutation of “Dear Dear”, my name listed as “Dear Customer”, and a random return address that is a residential home in Mississippi according to Google Maps. A third email followed the same modus operandi, had my name as “Existing User”, a random return address in a residential neighborhood of Brooklyn, and an alleged renewal fee of $299.87 for 3 years and up to 5 devices (the best deal yet.) It, of course, included a toll-free phone number “in case you wish to stop this transaction or stop auto-renewal”.

In the first two of these three instances, the toll-free numbers (which I called from a randomized phone number) were already disabled. The perpetrators hope that recipients will panic and call them immediately while their temporary phone numbers are still enabled. The third number was busy with other callers and asked me to leave a return phone number. Of course, they will then ask for a credit card or other account number in order to process the alleged “refund”.

Fight Back!

First of all, pay close attention to unsafe content warnings in your email software. Then never respond to requests for your private information, beware of messages that convey a sense of urgency, and never click on unknown links. If you are one of the millions of people who use Gmail as your email service provider, you can report a phishing email that may have made its way to the inbox on your computer by opening the message, clicking on the three vertical dots next to the “Reply” icon, then clicking on “Report phishing.” If a phishing email asks you to make a payment via PayPal, forward the entire email to phishing@paypal.com.

You may also forward phishing emails to the Anti-Phishing Working Group at reportphishing@apwg.org. This organization includes ISPs, banks, online security companies, and law enforcement agencies. You can also report phishing attempts to the Federal Trade Commission at https://reportfraud.ftc.gov/. In the event that you have actually been a victim of a phishing scam, first contact your bank or credit card company, where you will probably want to change passwords and cancel your credit card. Then file a report with the FBI’s Internet Crime Complaint Center (IC3) at https://www.ic3.gov/. In most instances, you may also file a complaint with the office of your state attorney general. Nobody likes being a victim of what is essentially online crime, but it is good to know how to protect yourself and how to take responsive measures when necessary.

This post was written by Peter Pelland