New Study Reveals Cities With The Highest And Lowest Taxes For Travelers

by Dave Seminara on

On a recent road trip, I stopped for the night in suburban Indianapolis and was happy to find a nice hotel room for just $91 per night. But in the morning, when I saw the receipt that was slipped under the door and noticed a total bill of $106.47, I thought that there was some mistake.

In huge cities like New York and Chicago you expect punitive taxes on travel related expenses, but could the hotel tax rate really be 17% in the Hoosier State? A stroll down to the front desk confirmed that there was no mistake and according to a newly released report from the Global Business Travel Association (GBTA), Indy has one of the highest hotel tax rates in the country.

I don’t know about you, but when I’m planning a trip, I don’t think much about taxes, but I probably should because in some places they can really drive up the cost. I tend to look at the room rate or the rental car rate itself, and by the time I get to the confirm page where you see the taxes, I’ve more or less already made my decision and somehow I think I’m paying $91 for the room in Indy, rather than the $106.47 it will come to with taxes.Since the start of the Global Recession, politicians in cash strapped municipalities all over the country have been looking for ways to make up for budget shortfalls and hitting out-of-towners is a convenient way to escape the wrath of local voters. According to the GBTA’s fifth annual report, “discriminatory travel taxes and fees enacted on travel-related services impose an average increased cost on visitors of 57% over general sales tax.”

So what are the most and least taxing cities for travelers? It should come as no surprise to see New York and Chicago on the taxing list, but why are Portland, Oregon, and a few places in California in the least taxing column? Portland actually shows up in the top ten least taxing list because Oregon has no sales tax, but it also shows up in the top most discriminatory taxes list (which doesn’t count taxes that apply to everyone, just those that apply to travelers) because it has a very high rental car tax rate.

A number of municipalities in California lowered their sales tax rate in 2011 and made the least taxing list based on that. The biggest surprise for me is the fact that Honolulu made the least taxing list.

Highest Overall Tax Burden for Travelers

The following figures reveal how much a traveler would pay in taxes for one day of travel, including a $103.45 hotel room, a $55.99 rental car and $91.22 in meals at restaurants. Chicago hits the trifecta with crippling taxes on hotels and rental cars plus a high sales tax rate, giving it the overall tax crown.

Chicago- $40.33
New York- $37.98
Boston- $34.83
Kansas City- $34.58
Seattle- $34.43
Minneapolis- $34.32
Cleveland- $34.22
Indianapolis- $34.19
Nashville- $34.13
Houston- $33.51

Lowest Overall Tax Burden for Travelers

Ft. Lauderdale, FL- $22.21
Ft. Myers, FL- $22.21
West Palm Beach, FL- $22.21
Detroit, MI- $22.37
Portland, OR- $22.45
Orange County, CA- 22.79
Burbank, CA- $23.74
Ontario, CA- $24.08
Honolulu, HI- $24.38
Orlando, FL- $24.50

New York City has the highest hotel tax rate, followed by Nashville, Indianapolis and Houston. Chicago has the highest rental car tax rate, followed by Boston, Las Vegas, and Minneapolis.

One might ask what these cities are doing with the tax revenues they collect from travelers. Are they using the money to promote their destination or to enhance the tourism infrastructure? The answer varies from place to place, but looking at Chicago, for example, just 1% of the 16% hotel tax goes toward tourism promotion, according to the study.

In most European countries, prices for hotels, rental cars, meals and almost everything else already include the applicable taxes. As a consumer, I find this very straightforward in that you know exactly what you’ll pay, but it also masks where your money is going. You might think that 100€ you’re paying for a hotel room is pricey, but you may not be aware that the hotel is losing a large chunk of that revenue to the tax collector.

Do you pay attention to the tax rates when planning travel, or are they just an afterthought? If the city has a high hotel tax rate, will you choose a less expensive hotel or go to a different city altogether? Would you like to see hotels and rental car companies display or explain the tax rates in a more transparent way when you book through the Internet or over the phone?

[Photo by 401K 2012 on Flickr]

Global Street Food Celebrated In Recipes And Stories In New Book

by Laurel Miller on

For those of you who are unfamiliar with the reign of the “Two Hot Tamales,” Susan Feniger and Mary Sue Milliken were the badass female chefs/restaurateurs of the ’80s and ’90s, and the darlings of the Food Network in its infancy (read: when it was good). They helped to put world and regional Mexican cuisine on the radar in the United States with their L.A. restaurants CITY, City Cafe, and the Border Grill, and subsequent TV shows and cookbooks.

Today, they’re still at it. Feniger competed on “Top Chef Masters” last year, and also has her first solo restaurant, STREET, in Hollywood. The menu is dedicated to one of her enduring passions, which is global street food. In July, “Susan Feniger’s Street Food: Irresistibly Crispy, Creamy, Crunchy, Spicy, Sticky, Sweet Recipes” (Clarkson Potter), hit the shelves: a lively collection of recipes adapted from her favorite street foods worldwide.

In June, I caught Feniger doing a pre-release-inspired cooking demo, “Irresistible Street Food,” at the Food & Wine Classic in Aspen. I’ve attended a lot of cooking demos in my day, and she’s without doubt one of the most engaging, down-to-earth chefs I’ve ever seen, and not just because I’m piggishly besotted with street food.

Caught up in sharing the travel stories behind the recipes she was preparing (the book is packed with anecdotes from her trips to places like India, Turkey, Mongolia, Vietnam, and Singapore), Feniger was reminiscent of a modern-day Julia Child. “Oh! Salt. Forgot the salt. Oh well, let’s add some more gin!” she said of her Honeydew Cucumber Cooler. In her defense, I, along with the rest of the audience, was suffering a classic Food & Wine Classic hangover right along with her. The weekend’s motto should be, “You play, you pay.”

Feniger also prepared Indian Puffed Rice Salad, and Egyptian Bus Stop Kushary (a lentil dish), in between anecdotes. Whether you’re an armchair traveler or a street food-obsessed adventurer, her book will leave you inspired, intrigued, and hungry for a taste of what the world’s back alleys have to offer.

If you’re in the Bay Area, catch Feniger at a “Cooks with Books” event sponsored by Book Passage, featuring a meal made from the book’s recipes. She’ll also be doing a signing at Omnivore Books in San Francisco on September 21, and at the Book Passage in the San Francisco Ferry Building on September 22.

How (And Where) Business Travelers Stay Productive On The Road

by McLean Robbins on

Are you productive when traveling for work? The easy answer is that it depends on how much you travel. Frequent business travelers know how to maximize productivity while on the road, and those who are able to quickly acclimate to new environments may also be good at this trick of “on the go productivity.”

I, personally, am writing from a hotel bed while eating Pringles from the mini bar. That’s all about productivity, no?

Were I in San Diego (74%) and Seattle (69%), I’d be best primed to be “work-life” productive on a U.S. overnight business trip, a new survey from Cambria Suites found. I’d also do well in Boston, Chicago, Orlando, San Francisco, Denver, New York, Phoenix or San Antonio.

The survey showed that nearly all travelers state that work-life balance is an important goal for business travel. Seventy-one percent of respondents say the key to achieving work-life balance is focusing on “work-life productivity” while traveling, which means living their entire life more productively and putting equal focus on work and personal needs.

As such, the study explored how travelers stay productive on the road and what tools best help (or hinder) their experiences.Employer Expectations Grow Even As Travel Budgets Shrink

On the heels of reports that U.S. business travel continues to grow, so do the expectations of employers. The survey shows that road warriors feel employers are demanding greater outcomes and higher efficiencies from each and every business trip.

Almost a quarter (23%) of business travelers say that they are staying less frequently at hotels that are full service or luxury class, and more than one out of five (21%) say they are facing greater scrutiny over outcomes from their business trips.

Technology Critical to Balance Top Personal Challenges on the Road

The Cambria Suites survey found that spending time with loved ones (62%) and missing important events and milestones in their personal lives (42%) are two of the top five challenges cited by business travelers while on the road. Others include: eating healthy and on a regular schedule (68%), getting proper sleep (62%), and exercising regularly (60%). Caring for pets at home (24%) is also a concern for some business travelers.

According to the survey, technology is a top tool for business travelers to balance personal and professional needs; nearly two-thirds (66%) of business travelers cite technology as critical in achieving greater overall work-life productivity. While technology has made business travel more efficient and productive for nearly eight of 10 travelers (78%), it is equally significant in helping them stay connected with loved ones on business trips (81%).

Right Hotel has More Impact on Staying Productive than Flight or Rental Car

The survey also revealed the importance hotels play in achieving balance and productivity when traveling. More than half of road warriors (56%) say that the hotel component has a greater impact on their ability to work productively than other trip components, such as their flight or rental car. Comfortable beds and bedding (65%), closely followed by free Wi-Fi (62%) are cited as most important when it comes to hotel services and amenities. Friendly, helpful staff (39%), free parking (30%) and a spacious, well-appointed hotel guestroom (26%) complete the top five must-have hotel services for business travelers.

More Women Than Men Use Technology to Stay In Touch with Loved Ones

The survey found women value and use technology more than men to stay connected with their personal lives on business trips. Women are more likely (plus 13% points) than men to say that social media in particular has enhanced their business travel experience by keeping them in touch with their personal and professional networks (42% compared with 29%). Eight of 10 female business travelers state that technology is just as important in their business and personal life to enhance their overall productivity, compared to seven of 10 men. The survey also revealed that achieving work-life balance is more important to female road warriors, with 96 percent of women saying work-life balance is an important goal compared with 82 percent of men.

How do you stay productive and balanced while on the road?

YouTube Sensation: Real Actors Read Yelp

by Laurel Miller on

Possibly, I’ve been living under a rock, but I just discovered the hilarious YouTube series “Real Actors Read Yelp,” the brainchild of Gotta Kid to Feed Productions.

Broadway thespians and television bit players provide heart-wrenching (and sometimes downright terrifying) enactments of real reviews from across the country. There’s everything from the Times Square Olive Garden (“The waitresses-slash-waiters smile, and seem … nice, but it feels like they’re doing it just to increase their tips.”) to Crazy Horse Gentleman’s Club (“I’ve never been impressed with the dancers. They either look like they just had a kid, or they’re obviously on drugs.”).

It’s hard to choose a favorite, but I’m partial to this disembowelment of a PF Chang’s, as performed by Tony Award-winner Greg Hildreth.


Is Travelocity Built For Women?

by Grant Martin on

The folks over at Skift have an interesting study on mobile travel apps as a function of gender. Among the comscore data that they crunched, they found that the mobile tools for Hilton and Delta were frequented primarily by men (74% and 67% respectively) while among Online Travel Agents, Travelocity was the only tool that was gender asymmetric. Apparently, 66% of Travelocity app users are women, while other sites like Orbitz and Kayak are closer to 50/50.

What’s with the skew? Dennis Schaal, the author of the article, jokingly suggests that the Travelocity Gnome might have some better sex appeal (and The Negotiator doesn’t?) but the real influences are probably more subtle than that. It’s well known that design aspects of a website including color and functionality tend to cater to different demographics. In this case, it’s possible that Travelocity’s design is just better suited to the female aesthetic.

Either way, Travelocity has the same comscore data that we do, so the targeting is intentional. We just don’t know why.