THEGUILD of Business Travel Agents is urging the UK hotel industry to adopt a common policy of quoting rates inclusive of VAT on the global distribution systems.
The call came after its hotel partner Thistle Hotels asked the guild to conduct a study to investigate what was common practice. The study showed many hotels were quoting rates exclusive and causing agents the extra workload of adding the 17.5% tax.
Thistle quotes inclusive rates at all of its UKhotels, including those in London, but was concerned this policy made its prices look uncompetitive.
It is now running a trial by quoting exclusive rates at the Royal Horseguards hotel to test what impact this has on its its business.
BTA hotel executive Julie Grout said:”It tends to be more common in London as the higher priced hotels, but our study showed it also happens in Manchester and other major cities.
Even within the big chains, there doesn’t seem to be any consistency. Hyatt, for example, quotes rates exclusive in London but inclusive in Birmingham.
“The current situation is confusing for agents, and the inconsistency in the way VAT is quoted means it is extremely difficult to make comparisons. Ultimately, this could result in the corporate client being given inaccurate information.
“When you are talking about hotels at the top end of the market, with rates of ú150, adding the 17.5% tax makes a big difference to the rate.”
The GBTA has written to all of its hotel partners to urge them to adopt a UK-wide policy.