Bill targets hidden fees in hotels and rentals

Bill targets hidden fees in hotels and rentals

The Hotel Fees Transparency Act: Bringing Clarity to Hotel Booking

Hotel Bill

A new bill has been introduced that could bring a significant change to the hotel and short-term rental industry. The Hotel Fees Transparency Act, introduced by Senators Jerry Moran and Amy Klobuchar, aims to eliminate hidden surcharges and improve cost transparency. This move aligns with the Biden administration’s push to eradicate “junk fees” across various industries.

The American Hotel & Lodging Association (AHLA), the largest hotel association in the United States, supports this bill. According to their data, 6% of hotels across the nation charge mandatory resort, destination, or amenity fees, averaging $26 per night. AHCLA’s membership includes major hotel chains, independent hotels, management companies, real estate investment trusts, and bed and breakfasts.

The bill proposes a single standard for displaying mandatory fees to bring consistency across the industry. This standard would apply not only to hotels but also to online travel agencies, metasearch sites, and short-term rental platforms. Chip Rogers, AHLA President and CEO, believes that this bill is a pivotal step towards creating a more transparent booking process for customers who often compare prices across multiple platforms.

Sens. Moran and Klobuchar introduced the bill on July 27, emphasizing the need to protect consumers from hidden fees. Sens. Moran highlighted how high prices force people to account for all their expenses, and hotel room prices should not be shrouded in mystery. The legislation would require hotels and other short-term lodging providers to display and advertise the total price of a room, allowing customers to know the true cost they will pay at check out.

One of the challenges for consumers when making online reservations is the prevalence of hidden fees. These fees make it difficult to compare prices and understand the true cost of an overnight stay. Senator Klobuchar stressed the importance of improving transparency to enable travelers to make informed decisions. The Hotel Fees Transparency Act aims to address this issue.

President Biden has also raised the issue of “junk fees” in various industries. In his State of the Union address last February, he mentioned hotels, along with airlines, credit card companies, concerts and sporting events, cable and internet providers, and cell phone companies, as major culprits. He pledged to ban surprise resort fees, which can add up to $90 per night even in non-resort hotels.

This bill has the potential to prevent consumers from falling victim to surprise charges and hidden fees. It would create clarity and transparency, ensuring that the advertised price is the price customers ultimately pay. By fostering a fair and transparent marketplace, consumers can make more informed choices when planning their travel accommodations.

Additional Resources