Shining a Light on Hidden Hotel Fees: New Bill Aims for Transparency in Booking

A cross-party coalition of lawmakers in the US Senate has put forward legislation designed to eliminate concealed charges imposed by lodging providers. The proposed law, a direct response to President Biden’s plea for upfront cost clarity in sectors such as the lodging industry, would mandate that hotels and temporary rental services plainly reveal the complete expense of a reservation, encompassing any obligatory charges, at the outset of the booking procedure.

This legislation, known as the Hotel Fees Transparency Act, would grant the Federal Trade Commission authority to probe infractions and permit state attorneys general to initiate legal proceedings against violators. The bill’s sponsors, Senators Amy Klobuchar (D-MN) and Jerry Moran (R-KS), contend that obscured charges complicate price comparisons and travel budgeting for consumers. They posit that this measure will foster equitable competition and empower customers.

This initiative expands upon President Biden’s State of the Union commitment to address “unnecessary fees” across diverse industries.

This legislation aims to eliminate concealed charges for lodgings reserved through the internet. Its scope extends beyond hotels to encompass websites such as Expedia and Kayak, along with any platform facilitating room bookings.

However, not all parties are pleased. The American Gaming Association, representing casinos (many housing hotels), expresses concerns about the law’s broad reach. They contend that hotels provide a wide array of services, making it ambiguous which fees would be deemed misleading.

Resort fees, especially, have long been a source of frustration for travelers. These obligatory charges are frequently tacked on at the booking’s conclusion and can encompass amenities like internet access and pool use – services often assumed to be included in the advertised rate. As early as 2016, these fees were criticized as unjust.