The FTC’s new rule puts an end to hidden costs by requiring hotels and short-term rentals to reveal all pricing up front.
The action seeks to safeguard customers, reduce needless expenses by billions, and advance openness in the travel sector.
Travelers can now fully relax because short-term rentals and hidden hotel fees are expected to disappear. The Federal Trade Commission (FTC) enacted the Junk expenses Rule on Tuesday, which mandates that lodging establishments disclose all expenses up front, even required fees like Wi-Fi or resort fees.
With the words, “People deserve to know upfront what they’re being asked to pay—without worrying about surprise charges,” FTC Chair Lina M. Khan emphasized the importance of the rule.
In addition to saving millions of hours spent figuring out confusing pricing, the law is predicted to save Americans up to $11 billion over the next ten years.
Travelers have always been frustrated by hidden surcharges. Resort fees alone cost an average of $38.82 per night, often surpassing 30% of the advertised nightly rate, according to a 2023 research.
In order to ensure transparency in the booking process, the new law requires firms to publicly publish the actual pricing.
There are also concerns about how hotels will make up for lost revenue while the hospitality sector adapts to these developments. Higher base rates or fees for more guests are anticipated by some analysts.
The American Hotel & Lodging Association, which commended the regulation for establishing a uniform national norm, and consumer groups have endorsed the measure in spite of these obstacles.
Travelers may anticipate a more open booking process and fewer surprises at checkout—as the rule is subject to public debate and possible judicial examination.
