Package taxes and service charge: where they hide
The price looks fine, but you want to know whether tax and service charge are already in it.
A package price may or may not include taxes and service charge, and the wording tells you which. Look for “nett”, “inclusive” or “all-in” for a final price, and for “plus plus” or silence as a signal to ask. A price you cannot read as final is a price you cannot yet compare.
Place this next to our look at what a full-board package includes and excludes. Our island trip cost calculator lets you add a percentage once you have the real one.
Which wording tells you the price is final?
Read the line near the price, not only the price itself. The table shows how to read the common phrases.
| Wording | How to read it | Ask |
|---|---|---|
| Nett | Usually the final price | Are all taxes and charges in it? |
| Inclusive of taxes and service charge | Final | Which taxes, and at what rate? |
| Plus plus (++) | Taxes and charge added later | What is the final total? |
| Rates subject to tax | Not final | What is the tax, and when is it added? |
| No mention | Unknown | Is this the amount I will pay? |
If a quotation uses two different styles, such as nett for the room and plus plus for the meals, ask for one combined total.
How do you check a price yourself?
You can test any quotation with a short sum. Take the base price, then add the percentage the agency states for tax and service charge. The result is what you would pay if the agency’s wording is right.
Say a quotation reads RM X plus plus. If the agency tells you the added charges come to P percent, the final price is RM X multiplied by one plus P over 100. Ask for P, because we do not state a rate here and it may differ between operators. Then compare it with a second quotation that says nett.
Where do taxes and charges appear later?
There are four places to watch. The first is the invoice, where the charge may show as a separate line. The second is the resort desk at check-in or check-out.
The third is a booking page that shows the total only at the last step. The fourth is a tax that applies to certain guests, covered in our guide on tourism tax on Malaysian island packages.
Ask the agency to confirm that nothing else is payable at the desk, and keep a written record. This is also a good time to ask about other items that sit outside, such as the marine park fee.
What should you say to the agency?
- Is this price nett, or will taxes and service charge be added?
- What are the rates, and what is the final total for my group?
- Is anything else payable at the resort?
- Will my invoice show the charges as separate lines?
A direct question gets a direct answer. If the reply is vague, ask again before paying a deposit.
A better fit if…
A nett package may suit you if you want to budget with one number. A plus plus price may suit you if you are comfortable doing the sum and want to see each part. When you compare two quotes, make sure both are in the same form, as our guide on finding the real differences between two quotations shows.
Common questions
How do I know if a price is final?
Look for wording such as nett, inclusive of taxes and service charge, or all-in. If the price says plus plus, or does not mention taxes, ask the agency for the final amount in writing and for the rates they apply.
What does plus plus mean?
It is shorthand some hotels use to say that taxes and service charge will be added to the listed price. Ask the agency for the final total, because the added percentage changes the comparison between two quotes.
Who sets the service charge?
The resort or the agency sets the charge, and the rate may differ. Ask which rate applies, what it covers and whether it appears on the invoice as a separate line.
Do I pay these at the desk?
Sometimes. A charge that is not in the package price can be collected on arrival or at check-out. Ask whether anything is payable at the desk, and what the amount is.