U.S. House Passes No Hidden FEES Act to Ensure Transparency in Travel Accommodation Pricing
The U.S. House of Representatives has recently passed the No Hidden FEES Act, marking a significant step toward enhancing transparency in the pricing of travel accommodations. This legislation, a key initiative backed by the American Hotel & Lodging Association (AHLA), aims to eliminate unexpected costs for consumers by mandating the upfront disclosure of all mandatory fees associated with lodging.
Legislative Journey and Industry Impact Introduced in July 2023 by Representatives Young Kim (R-Calif.) and Kathy Castor (D-Fla.), the bill received unanimous approval from the House Energy & Commerce Committee in December and was passed by a bipartisan vote in the House on June 11. The legislation addresses a longstanding issue within the hospitality industry, where hidden fees have often led to consumer dissatisfaction and legal scrutiny. Notably, major hotel chains like Hyatt and Hilton have faced criticism and legal challenges over their practices of concealing resort fees, prompting a reevaluation of fee transparency.
Key Provisions of the Bill The No Hidden FEES Act (H.R. 6543) proposes a uniform standard for the disclosure of mandatory fees across the lodging industry, including hotels, short-term rentals, online travel agencies, and metasearch sites. This standard would ensure that all fees are clearly presented to consumers at the time of booking, fostering a fairer and more competitive market.
Support and Next Steps The AHLA has been a vocal advocate for the bill, emphasizing the necessity for clear and transparent fee communication. “It makes sense for all lodging businesses to tell guests up front about mandatory fees,” stated AHLA Interim President & CEO Kevin Carey. The organization is now focusing its efforts on the Senate, where similar legislation supported by Senators Klobuchar and Moran is under consideration.
If the Senate passes the bill, it will move to President Biden for signing into law, aligning with the administration’s broader agenda to combat hidden fees across various sectors. This includes a proposed junk fee ban by the Federal Trade Commission, which extends beyond the lodging industry to include airlines and other services, making the undisclosed collection of additional fees illegal.
As this legislation progresses, it holds the promise of more transparent pricing practices that could significantly improve consumer trust and satisfaction in the travel and hospitality sectors.