FTC Bans Hidden Hotel Fees, Mandates Upfront Pricing for Travelers

The Federal Trade Commission (FTC) has dropped a game-changer for travelers, cracking down on those sneaky add-on fees that hotels and vacation rentals love to slip in. The new rule, dubbed the Unfair or Deceptive Fees crackdown, targets the notorious 'resort' or 'destination' charges tacked on for using amenities like pools or gyms.

From hotels to Airbnbs, short-term lodging businesses must now show the total price upfront in their ads, including all mandatory fees they can calculate. No more bait-and-switch pricing to lure you in with a low rate only to hit you with extras at checkout. Taxes and government fees, however, get a pass from this rule.

Only about 6% of hotels charge these resort fees, per the American Hotel and Lodging Association, but they’ve been a sore spot for travelers. Marriott, for one, claims they’ve been ahead of the curve, rolling out transparent pricing since May 2023. Their spokesperson told WTFNewsRoom, 'Guests won’t notice a difference because we’ve been upfront for two years.'

The rule also applies to live-event ticketing, ensuring businesses can’t hide fees there either. For travelers, there are workarounds: booking with hotel points or leveraging elite status can sometimes dodge these fees, though some resorts still demand cash on top of points, according to Nerdwallet.

Rosanna Maietta, CEO of the American Hotel & Lodging Association, praised the move, saying it brings 'much-needed clarity' to the booking process. With this rule, travelers can book with confidence, knowing the price they see is the price they’ll pay.