This study investigates how fee-oriented business models in the hospitality industry are associated with corporate tax avoidance. Using a sample of international hospitality firms, the results from OLS and entropy balancing estimations indicate that greater reliance on fees is associated with lower tax avoidance (i.e., higher effective tax rate). We attribute the higher tax burden to lower incentives for fee-oriented businesses to engage in tax avoidance to preserve their reputation―a strategic asset. An additional analysis indicates that this association is less pronounced when financial information is complex to understand, fee-oriented companies taking advantage of this more obfuscating informational environment. This paper provides insights into a societal benefit (i.e., greater tax payment) of the widespread adoption of the fee-oriented business model by the hospitality industry.