The Federal Trade Commission (FTC) has announced a new regulation that requires hotels to disclose all fees upfront, preventing hidden resort charges. This move is aimed at protecting travelers from unexpected costs by ensuring transparency in pricing. The FTC’s rule targets ‘Unfair or Deceptive Fees,’ which are sometimes applied to short-term lodging as ‘resort’ or ‘destination’ fees when customers use hotel amenities such as pools or gyms.
Short-term lodging includes hotels, motels, vacation rentals, and businesses like Airbnb. About 6% of hotels charge resort fees, according to the American Hotel and Lodging Association. The rule prohibits bait-and-switch pricing and other tactics used to hide total prices and mislead people about fees in the live-event ticketing and short-term lodging industries. Taxes or other government fees are excluded from the rule. Short-term lodging and live-event businesses must include pricing information in their ads and provide the total price upfront. The total price includes all charges or fees the business knows about and can calculate upfront, including charges or fees for mandatory goods or services people have to buy as part of the same transaction.
A Marriott spokesperson told Fox News Digital that the company began providing customers with clear and transparent pricing in May 2023. ‘We were the first hospitality company to ensure non-government fees charged by hotels are upfront and included in the total price displayed to customers,’ the spokesperson said. The American Hotel & Lodging Association (AHLA) has also supported this initiative, with its president and CEO, Rosanna Maietta, expressing strong belief in the importance of transparency for all consumers. ‘We strongly believe that all consumers deserve transparency in the booking process, no matter where they choose to book their stays,’ Maietta added.
Travelers can avoid resort fees by booking rooms on points or having hotel elite status. Nerdwallet suggests using hotel points to avoid the fee. This new regulation marks a significant step towards greater transparency in the hospitality industry, ensuring that customers are fully informed about the costs associated with their stays.