The Federal Trade Commission (FTC) has introduced a regulation requiring hotels to disclose all fees upfront, aiming to prevent hidden resort charges and provide travelers with clearer pricing information. This move targets deceptive practices where hotels impose additional costs for amenities like pools or gyms without full disclosure.
The regulation addresses ‘Unfair or Deceptive Fees,’ which are often applied to short-term lodging as ‘resort’ or ‘destination’ fees when customers use hotel amenities. The FTC’s mandate covers hotels, motels, vacation rentals, and businesses like Airbnb, ensuring that all charges or fees known at the time of booking are included in the total price. The rule excludes taxes and other government fees, which remain unchanged under this new regulation.
According to the American Hotel and Lodging Association, about 6% of hotels charge resort fees. The FTC emphasizes that the total price must be displayed upfront and include all charges, including mandatory goods or services. Marriott, a major hotel chain, has already implemented this policy since May 2, 2023, stating that they were the first to ensure non-government fees are included in the total price.
The American Hotel & Lodging Association (AHLA) has supported the initiative, highlighting the need for transparency in the booking process. Travelers can avoid resort fees by booking rooms on points, using hotel elite status, or avoiding certain booking platforms that might still charge these fees.