Hotel pricing comes with its own jargon resort fees, service charges, "prepay" rates, DCC, pre-auth holds and it's designed to be skimmed past. This glossary explains each term in plain English, tells you whether it's something you can avoid, and flags what UK law now protects you from. The short version: since April 2025, mandatory fees must be shown in the total price upfront (the drip-pricing ban), and card surcharges have been banned since 2018 so many old "traps" are now illegal to hide. But optional extras and overseas charges still catch people out. Book direct with a transparent provider like BNBUK and most of these disappear the price you see is the price you pay. Here's every term you're likely to meet.
What are resort fees?
A resort fee (sometimes a "facility" or "amenity" fee) is a daily mandatory charge covering things like wi-fi, the gym or the pool whether you use them or not. They're rare in the UK but common abroad, especially in the US. In the UK, a mandatory resort fee must now be built into the total price you're first shown; overseas, it may still be sprung on you at the hotel, so check before you book.
What is a hotel service charge?
A service charge is an amount added for service. It's far more common in restaurants than hotels, and may be discretionary (optional) or mandatory. If it's mandatory in the UK, it has to be in the upfront price it can't appear as a surprise at checkout.
What are "prepay" and non-refundable traps?
A prepay, advance-purchase or non-refundable rate asks you to pay now for a discount, but you usually can't change or cancel it. The trap is simple: the saving is often small, but if your plans change you can lose the whole booking. Only choose one if your dates are certain otherwise a flexible rate is worth the few extra pounds.
What's a booking or service fee on booking sites?
A booking fee or service fee is a charge some third-party sites (OTAs) add to cover their costs. Book direct and you usually skip it, because there's no middle-man taking a cut. Any mandatory version must now be shown in the upfront total in the UK. (More in do UK hotels charge booking fees?)
What is dynamic currency conversion (DCC)?
Dynamic currency conversion is when a hotel or site offers to bill you in your home currency instead of pounds. It sounds helpful, but the built-in exchange rate is usually worse than your own bank's. For a UK stay, always pay in pounds (GBP).
What's a deposit or pre-authorisation hold?
A pre-authorisation hold (or "pre-auth") ring-fences an amount on your card often for incidentals or security without actually charging you. It's released after checkout, but it can make funds unavailable for a few days, so factor it in if your balance is tight.
What is a city or tourist tax?
A city tax or visitor levy is a local tax on overnight stays, collected by the accommodation. It's spreading across the UK: Edinburgh introduces a 5% levy from July 2026, Manchester already charges about £1 per room per night, and Wales has legislated a levy of around £1.25 per person per night from 2027. It isn't a "hidden fee"* it's a genuine tax but it's a real extra to budget for. (More in hidden hotel fees explained)
What is rate parity?
Rate parity clauses once stopped hotels advertising a cheaper price on their own site than on an OTA. They're now relaxing the EU removed them in 2024 and UK rules are moving the same way which is a big reason booking direct is increasingly cheaper. (More in why hotels are cheaper when you book direct)
Quick-reference glossary
| Term | What it means | Can you avoid it? |
|---|---|---|
| Resort / facility fee | Daily mandatory amenity charge | Often rare in the UK; check upfront |
| Service charge | Charge added for service | If optional, yes |
| Non-refundable / prepay rate | Cheaper rate, no changes or refunds | Yes choose a flexible rate |
| OTA booking / service fee | Third-party platform fee | Yes book direct |
| Dynamic currency conversion | Pay in home currency at a poor rate | Yes pay in GBP |
| Pre-authorisation hold | Temporary hold on your card | No, but it's released after checkout |
| City / tourist tax | Local levy on overnight stays | No it's a tax; budget for it |
FAQ
What are resort fees?
A daily mandatory charge some hotels add for amenities like wi-fi, gym or pool. They're rare in the UK and common abroad. In the UK, a mandatory resort fee must be included in the total price shown upfront.
Are resort fees legal in the UK?
Yes, but they can't be hidden. Since April 2025, any mandatory fee must be shown in the total price from the start, so a UK hotel can't spring a resort fee on you at the end.
What does non-refundable mean for a hotel booking?
It means you pay upfront for a lower rate but usually can't change or cancel it. If your plans change, you can lose the whole booking, so only choose it when your dates are certain.
What is dynamic currency conversion?
When a hotel or site offers to charge you in your home currency instead of pounds. The exchange rate is usually worse, so for a UK stay you should pay in pounds.
Do UK hotels charge a service charge?
Sometimes, though it's less common than in restaurants. If a service charge is mandatory, UK law requires it to be included in the total price shown upfront.
