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If you run a tourist accommodation, you’ve likely faced questions about the best way to handle the tourist tax in your city. Should you charge it at booking, check-in or check-out? Charging at check-in can create a poor first impression and may require staff at the front desk, adding to operational costs. Including it in the reservation price could make your rates less competitive, potentially discouraging bookings.
At LUGGit, we want to do our part and explain how you can reduce the impact of the tourist tax thanks to the extra income you earn by recommending our service to your guests. Below we define tourist tax, look into its details in the 10 European cities where we operate at the moment, and tell you how to do it.
What is The Tourist Tax?
The tourist tax is an additional fee applied to bookings at hotels, hostels, tourist apartments and vacation rentals. It is paid by guests based on the number of nights and people staying at your accommodation.
This tax was introduced over 10 years ago in major tourist cities as a way for local governments to promote sustainable tourism and preserve public spaces. The amount and rules vary by city, with each municipality decking how to implement it.
Tourist tax in the 10 LUGGit cities
Lisbon
€4 per night per guest. Introduced in 2015 at €2 and increased to €4 in 2024.
Porto
€3 per night per guest (since January 2025). Previously €2, now closer to Lisbon’s rate.
Prague
50 Czech crowns (€2) per night per guest. Doubled in 2022 from 25 CZK (less than €1).
Barcelona
Rates depend on the accommodation type:
- 5-star hotel: €3.5
- 4-star hotel: €1.70
- Tourist accommodation: €2.25
- Other establishments: €1
Additional surcharge:
- Until Oct 2024: €3.25
- From Oct 2024: €4
Example: A tourist accommodation now charges €6.25 per night (€2.25 + €4).
Madrid, Málaga and Valencia
No tourist tax currently in place.
Florence
€7 per guest per night. One of the highest tourist taxes in Europe.
Athens
The new rate (renewed in March last year) takes into account the season and the type of accommodation.
- During the high season, from March to October, between €1.5 and €10 per night per guest, depending on the category of accommodation.
- From November to February, it ranges from €0.5 to €4.
Budapest
4% of the reservation price or max. 350 HUF per person per night.
How to reduce the impact of the tourist tax with LUGGit and be more competitive
Partnering with LUGGit allows you to earn commissions by recommending our luggage transfer service to your guests. This extra income can help offset the tourist tax and make your business more competitive.
Earn up to 5€ per booking when your guests use LUGGit. If they use it both on arrival and departure to maximize their first and last day, you can earn up to 10€ per guest per stay.
On average, you will be able to cover the first night of the tourist tax of one of your guests, two nights in case they book LUGGit both on arrival and departure, or the first night of the tourist tax of two of your guests if they also use LUGGit on both occasions.
And most importantly, it will allow you to:
- Have more competitive prices by being able to subtract our commissions from the booking price.
- Use our commission as an added value proposition for your guests by deducting it from the booking price. “We pay the first night of your tourist tax. We deduct it from the price of your reservation”.
Conclusions
Cross-selling is playing an increasingly crucial role in the management of accommodations. This tactic offers you the possibility to improve your guests' experience and at the same time generate extra revenue to help you improve your business and become more competitive.
With LUGGit, your guests enjoy their trip to the fullest, and you improve your operations and earn extra revenue that allows you to grow in the mid to long term.
Start automating all those daily early check-in and late check-out requests by collaborating with LUGGit
