USA to Regulate Advertised Pricing to Include "junk fees" (e.g. resort fees) for Hotels

[dajop]

It won’t be too hard for some chains to comply (eg. Marriott and IHG) who already have toggles that allow you to see inclusive pricing.

 

[moa999]

It's just that the advertised price must include them

So a $10+$50 hotel is shown the same as a $60 hotel.. fine for me.

 

[Mattg]

Junk fees haven't been banned. It's just that the advertised price must include them and none of this drip-feeding business.

I suspect that if these "junk" fees must now be included in the upfront price, most hotels will not have any incentive to have them. Eventually, hopefully, they'll die.

 

[justinbrett]

The title of this thread is misleading. Junk fees haven't been banned. It's just that the advertised price must include them and none of this drip-feeding business.

While you are correct (and as I said in the OP), the phrase “banning junk fees” was coined by the FTC themselves.

https://www.ftc.gov/news-events/news/press-releases/2024/12/federal-trade-commission-announces-bipartisan-rule-banning-junk-ticket-hotel-fees

Considering the purpose of these fees were to hide some of the price, I think a lot of them will be gone when this is implemented.

 

[serfty]

It won’t be too hard for some chains to comply (eg. Marriott and IHG) who already have toggles that allow you to see inclusive pricing.

It won't be difficult; Califonia already had regulated so from July this year with its "Honest Pricing Law"; which legislation requires businesses across all industries to include all mandatory fees in the advertised price of goods and services.

 

[justinbrett]

It won't be difficult; Califonia already had regulated so from July this year with its "Honest Pricing Law"; which legislation requires businesses across all industries to include all mandatory fees in the advertised price of goods and services.

That and those chains have hotels in countries like Australia where it is already mandatory.

It would take them 5 minutes.

 

[Quickstatus]

As I understand it, it doesn’t require a vote

Though overturning of Chevron opens up the regulations to attack by lawsuits. Agencies making regulations based on the power the underlying legislation is one thing but increasing the Administrative State has taken over a lot of the functions of Congress and intepreting the enabling legislation in ways not forseen by Congress.

 

[Daver6]

While you are correct (and as I said in the OP), the phrase “banning junk fees” was coined by the FTC themselves.

https://www.ftc.gov/news-events/news/press-releases/2024/12/federal-trade-commission-announces-bipartisan-rule-banning-junk-ticket-hotel-fees

Considering the purpose of these fees were to hide some of the price, I think a lot of them will be gone when this is implemented.

Do you think the overall price of a room will drop or just be incorporated into the room rate though?

 

[justinbrett]

Do you think the overall price of a room will drop or just be incorporated into the room rate though?

It depends on the market. At a place like Vegas - no, I think it will be added to the cost and there will be no change.

It's other markets where not every hotel charges a resort fee, or the resort fees vary significantly, these might drop as the whole purpose is to compete with cheaper properties on aggregator sites.