The Federal Trade Commission (FTC) has announced a new rule that will help protect travelers from all those unwanted add-on fees.
The rule tackles “Unfair or Deceptive Fees.”
These are sometimes applied to short-term lodging as “resort” or “destination” fees when customers use hotel amenities such as pools or gyms.
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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.
New FTC regulation mandates hotels disclose all fees upfront, eliminating hidden resort charges (iStock)
“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,” according to the FTC’s press release.
Taxes or other government fees are excluded from the rule.
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Short-term lodging and live-event businesses must include the pricing information in their ads and give 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,” says the FTC’s site.
The new rule impacts short-term lodging and live-event pricing. (iStock)
A Marriott spokesperson told Fox News Digital 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.
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“This enhanced display has been in place for two years, so guests are unlikely to notice a difference from what they see today,” Marriott also said.
Fox News Digital also reached out to the American Hotel & Lodging Association (AHLA), based in Washington, D.C., for comment.
“Consistent, upfront pricing will bring much-needed clarity to the marketplace.”
Earlier this year, the group’s president and CEO, Rosanna Maietta, said in a statement that it had “led the charge in establishing a federal standard to provide travelers with consistent, upfront pricing that will bring much-needed clarity to the marketplace.”
She added, “We strongly believe that all consumers deserve transparency in the booking process, no matter where they choose to book their stays.”
About 6% of hotels charge resort fees, according to the American Hotel and Lodging Association. (iStock)
There are a few ways travelers can avoid paying resort fees, according to Nerdwallet.
“When you book rooms on points, some resorts still tack on resort fees, which you must pay in cash on top of the points rate,” reads the website.
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Travelers who have hotel elite status are sometimes exempt.
Nerdwallet suggests using hotel points to avoid the fee.