{"id":106631,"date":"2024-08-07T14:29:12","date_gmt":"2024-08-07T14:29:12","guid":{"rendered":"https:\/\/www.itilite.com\/blog\/\/"},"modified":"2025-02-25T09:12:52","modified_gmt":"2025-02-25T09:12:52","slug":"hotel-incidentals","status":"publish","type":"post","link":"https:\/\/www.itilite.com\/blog\/hotel-incidentals\/","title":{"rendered":"How Should You Manage Hotel Incidentals On Corporate Cards?"},"content":{"rendered":"
Did you know that 60% of corporate employees in the US struggle with unexpected costs? These costs generally include incidental expenses and emergency expenses. A recent study revealed that business travelers frequently use personal cards to pay incidental expenses. Managing hotel incidentals is one of the significant challenges for many corporate employees in the United States.<\/p>\n\n\n\n
Incidentals, which can include anything from room service and minibar charges to laundry services and in-room entertainment, often add up quickly, catching travelers off guard. This situation strains their finances and complicates reimbursement, causing further inconvenience and potential financial stress.<\/p>\n\n\n\n
Such dependency on personal cards for managing hotel incidentals reflects a poor corporate travel management<\/a> process. Without a streamlined approach, employees face unnecessary hurdles, and companies lack clear visibility into overall travel expenditures.<\/p>\n\n\n\n This is precisely where corporate cards come into play. Explicitly designed for business-related expenses, corporate cards offer a seamless solution for managing incidentals at hotels, ensuring that employees are not burdened with out-of-pocket costs.<\/p>\n\n\n\n In this blog, we will look into the advantages of corporate cards<\/a> for hotel incidentals and how they can alleviate the common pain points experienced by corporate travelers.<\/p>\n\n\n Incidentals during business travel, also known as hotel incidentals, are expenses that employees incur during their stay. These expenses are not included in the standard room rate. Incidental charges in a hotel typically include laundry, food and beverages, mini-bar usage, and occasionally internet access. Hotels often require customers to provide an \u2018incidentals deposit\u2019 or \u2018security deposit\u2019 to cover additional costs while checking in. <\/p>\n\n\n\n These incidental charges are tracked in the hotel whenever a customer purchases the hotel’s paid facilities. For instance, the hotel staff notes the customer’s room number when they check in. The hotel incidental fee is added to the bill during checkout for whatever facilities the customer has used in his\/her room. <\/p>\n\n\n\n Hotels often charge guests for various hotel incidentals beyond the room rate. These hotel incidental fees typically cover additional services or amenities during the stay. <\/p>\n\n\n\n Here are the common types of incidentals charged by hotels:<\/p>\n\n\n\n These incidental charges in hotels can be as low as $15 and as high as $150, depending on the room’s size, cost, and availability. These prices can shoot up during peak seasons. <\/p>\n\n\n\n Incidental charges in a hotel cover the cost of additional services and amenities that guests may use during their stay. These charges exceed the standard room rate and include expenses such as minibar items, room service, phone calls, laundry, and on-demand entertainment. <\/p>\n\n\n\n By authorizing a hold on a guest\u2019s credit card at check-in, hotels ensure they have a form of payment for any of these unexpected or extra charges. This practice also protects the hotel from potential losses, guaranteeing that guests can pay for any services they utilize during their stay. Additionally, it encourages responsible use of hotel amenities by making guests aware that these extras will be added to their final bill.<\/p>\n\n\n\n Hotels typically handle incidental charges in a few different ways, depending on their policies:<\/p>\n\n\n\n Understanding this process helps guests avoid surprises and ensures they have sufficient funds available on their cards during their stay.<\/p>\n\n\n\n Effectively managing hotel incidentals is crucial for maintaining compliance and controlling an organization’s costs. Incidental charges in a hotel include room service, minibar usage, and other additional services. These can quickly add up and impact your company\u2019s travel budget. <\/p>\n\n\n\n Establishing clear guidelines and payment flows ensures that employees and the organization handle these expenses correctly, whether within or outside the company’s policy. <\/p>\n\n\n\n Mentioned below are two case scenarios for managing hotel incidental fee for corporate travel programs<\/a>:\u00a0<\/p>\n\n\n\n When users pay with individual cards, the payment flow from booking to checkout is straightforward but varies depending on the type of incidental charges incurred.<\/p>\n\n\n\n In scenarios where central cards are used, the company takes a more direct role in managing payments.<\/p>\n\n\n\n There is no denying that corporate travel involves a lot of expenditures. One of the main expenses is incidental charges in a hotel. And the best way to solve this problem is by leveraging itilite corporate cards.<\/p>\n\n\n\n With itilite card, employees don’t have to use their personal cards during their stay in the hotel. With itilite, you can also automate the CC auth process using one-time virtual cards. Employees can easily use the card without worrying about compliance, as it has a set budget.<\/p>\n\n\n\n Moreover, with an itilite card, you can maximize your savings and get up to 1.5% cash back on all card spending.<\/p>\n\n\n\n Curious to know more about itilite? Book a free demo now!<\/p>\n\n\n<\/a><\/p>\n\n\n\n
What Does the Term \u2018Hotel Incidentals\u2019 Mean?<\/h2>\n\n\n\n
Types of Incidentals Charged by Hotels<\/h2>\n\n\n\n
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Why do Hotels Charge for Incidentals?<\/h2>\n\n\n\n
When do Hotels Typically Charge for Incidentals?<\/h2>\n\n\n\n
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Managing Hotel Incidentals for a Corporate Travel Program<\/h2>\n\n\n\n
1. Scenario 1: Individual Cards<\/h3>\n\n\n\n
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2. Scenario 2: Central Cards<\/h3>\n\n\n\n
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Solve for Hotel Incidentals or No Incidentals by using itilite Cards<\/h2>\n\n\n\n