New Hotel Fee Transparency Bill Gains Strong Support from Travel Industry

Two members of the United States Senate have introduced a bill designed to force hotels and resorts to be more transparent about fees, dubbed the Hotel Fees Transparency Act.

According to NBCNews.com, the bipartisan bill was introduced by Sen. Amy Klobuchar, D-Minn., and Sen. Jerry Moran, R-Kan, and would require “anyone advertising a hotel room or a short-term rental to clearly show upfront the final price a customer would pay to book lodging.”

As part of the legislation, the Federal Trade Commission (FTC) would be responsible for “pursuing violations,” with each state’s attorney general having the power to bring civil action for violations.

“Too often, Americans making reservations online are being met with hidden fees that make it difficult to compare prices and understand the true cost of an overnight stay,” Sen. Klobuchar said. “This bipartisan legislation would help improve transparency so that travelers can make informed decisions.”

Data from Consumer Reports showed that the hotel industry brought in $2.9 billion in resort fees in 2018. As a result, U.S. President Joe Biden announced in February that his administration would target junk fees in various industries, including hotels and resorts.

The American Hotel & Lodging Association (AHLA) found that only six percent of hotels nationwide charge a mandatory resort/destination/amenity fee, at an average of $26 per night.

AHLA President and CEO Chip Rogers released a statement in support of the new bill:

“The Hotel Fees Transparency Act is an important bill that will create a single standard for mandatory fee display across the entire lodging ecosystem – from hotels to online travel agencies, metasearch sites, and short-term rental platforms.”

“We know consumers shop for travel across multiple sites, and this bill is a pivotal step toward creating a more transparent booking process for guests. We commend Senator Klobuchar and Senator Moran for their work on this issue and for recognizing the need to create a level playing field for all types of lodging providers and distributors.”

“We look forward to working with the senators and their colleagues on Capitol Hill on this crucial topic.”