Surcharge

A surcharge is an additional fee imposed on top of a base price for a product or service. Businesses apply surcharges to cover expenses such as fuel price fluctuations, credit card processing fees, airport taxes, or government-imposed taxes.

Surcharges can be a fixed amount (e.g., a $25 baggage fee) or a percentage of the total price (e.g., a 5 percent fuel surcharge on airfare). They may vary based on external factors like market conditions, regulatory changes, or demand levels.

For example, peak-season hotel surcharges occur when hotels increase their prices during high-demand periods, such as major holidays or special events. Similarly, ride-hailing services like Uber and Lyft apply a surcharge during rush hours or bad weather.

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