www.asianhospitality.com
07
News
December/January 2025 | Issue 232
he Federal Trade Commission
finalized a rule Dec. 17 requiring
industries, including hotels, to
disclose all fees upfront in advertised
prices. The rule bans hotels from
excluding resort fees, often labeled "junk
fees," from advertised rates for short-
term lodging. It takes effect 120 days after
publication in the Federal Register.
The rule mandates businesses to
prominently display the total price to
prevent "bait-and-switch tactics, such as
drip pricing and misleading fees," the FTC
said in a statement. Outgoing President
Joe Biden said he has always prioritized
families and hardworking Americans
and urged his administration to focus on
lowering costs.
“Today, the FTC is doing just that by
banning hidden junk fees when you book
a hotel or purchase event tickets,” Biden
said. “We all know the experience of
encountering a hidden fee at the very last
stage of checkout—these junk fees sneak
onto your bill, and companies end up
making you pay more because they can.
Those fees add up, taking real money out
of the pockets of Americans.”
Miraj Patel, AAHOA chairman,
emphasized that transparency builds trust
between hoteliers and guests and praised
the FTC’s action.
“By requiring upfront disclosure of total
pricing, this rule empowers consumers to
make informed decisions and ensures a
fair, competitive environment for hoteliers
who have always practiced honest pricing,”
he said.
The rule also applies to vacation rentals,
including Airbnb, and tickets for live
events, such as shows and sports, the FTC
said. It requires businesses to prominently
disclose the total price, including all
mandatory fees, whenever they advertise
services, displaying it more prominently
than other pricing information.
“People deserve to know upfront what
they’re being asked to pay—without
worrying they’ll later be saddled with
mysterious fees they haven’t budgeted
for and can’t avoid,” said Lina Khan, FTC
chairwoman. “The FTC’s rule will put
an end to junk fees around live event
tickets, hotels, and vacation rentals,
saving Americans billions of dollars and
millions of hours in wasted time. I urge
enforcers to continue cracking down
on these unlawful fees and encourage
state and federal policymakers to build
on this success with legislation that bans
unfair and deceptive junk fees across the
economy.”
Rosanna Maietta, AHLA president
and CEO, said AHLA has long advocated
for a single federal standard on lodging
fee display to ensure transparency for
consumers, regardless of how they book.
“We believe the fee-transparency
provision in the continuing resolution is
the best way to establish clear federal fee-
display rules across the lodging industry,”
Maietta said. “AHLA appreciates the
steadfast support of Sens. Klobuchar and
Moran, as well as Reps. Kim and Castor,
for their leadership on this important issue
and their efforts to secure this significant
win for guests in the CR. We are also
grateful to the FTC for incorporating much
of AHLA’s perspective into its final rule,
released today.”
“We firmly believe that one national
standard is the right approach for
consumers and businesses, and the
legislation included in the continuing
resolution best accomplishes that goal,”
she said.
The FTC estimates the rule will save
Americans up to 53 million hours annually
on pricing searches, equating to over $11
billion in savings over a decade. It takes
effect 120 days after publication in the
Federal Register, expected in April 2025.
Laura Lee Blake, AAHOA president and
CEO, called the ruling a win for consumers
and businesses.
“Uniform and transparent pricing
practices ensure clarity and fairness,
allowing guests to budget confidently
while protecting the integrity of our
industry,” Blake said. “AAHOA is proud
to support measures that foster trust and
improve the guest experience.”
In anticipation of the FTC rule, Hilton,
Hyatt, IHG, and Marriott already disclose
fees upfront in booking, The Points Guy
reported.
"IHG's channels already display
all mandatory fees in the total price
advertised to consumers, so IHG-branded
hotels are prepared for this ruling," an IHG
spokesperson was quoted as saying.
"We know consumers prioritize
transparency, and in 2023, Hilton made
proactive changes to our technology to
further enhance the display of mandatory
fees upfront on all Hilton websites and
apps,” a Hilton spokesperson told The
Points Guy. “We continue to advocate for
the upfront display of fee-inclusive pricing
across all booking platforms that sell our
inventory."
AHLA’s latest data shows that only 6
percent of hotels nationwide charge a
mandatory resort, destination or amenity
fee, averaging $26 per night.
FTC finalizes rule for hotel ‘junk fees’
The rule takes effect 120 days after its Federal Register publication
The Federal Trade Commission finalized a rule on Dec. 17 requiring industries, including hotels, to
disclose all fees upfront in advertised prices, banning hotels from excluding resort fees, often called
"junk fees," from advertised rates.