The U.S. House of Representatives has passed the No Hidden FEES Act, helping to establish transparency in extra fees for travelers booking any type of accommodation in the U.S.
Introduced by Reps. Young Kim, R-Calif., and Kathy Castor, D-Fla., the bill was approved unanimously by the House Energy & Commerce Committee in December 2023 and passed in a bipartisan vote on the House floor on Tuesday. The bill seeks to prohibit hotels, short-term rentals, metasearch platforms and online travel agencies from excluding mandatory fees, besides taxes and other government charges, from the price of a room reservation when displaying or advertising the charges.
The bill has been a significant legislative priority for the American Hotel & Lodging Association (AHLA) and would establish a “comprehensive single standard” for transparent and mandatory fee displaces in the lodging sector, AHLA said in a statement.
The bill is valid for all types of lodging business – from short-term rentals to online travel agencies metasearch sites and hotels – and informs guests about mandatory fees, said AHLA Interim President and CEO Kevin Carey.
“That’s why AHLA has led efforts supporting federal legislation to establish a single and transparent standard for mandatory lodging fee displays and an even competitive playing field. Thanks to Reps. Kim and Castor, we’re one step closer to making this a reality. We will continue to work with Senators Klobuchar and Moran on passing their related legislation in the Senate, with the goal of establishing a uniform standard across the industry as law,” Carey said.
Hotel chains have come under fire for charging additional, so-called “hidden” fees. In 2023, Hyatt was sued for violating Texas consumer protection laws over its advertisements of hotel room prices, besides two more lawsuits for hidden fees. The State of Texas and Marriott entered into an agreement last year to prominently display “resort fees” and to increase transparency in its booking process and advertisements. Marriott agreed to disclose all resort fees and the final price of rooms as the most prominently displayed price. Hilton also said it was working to ensure all mandatory fees are prominently displayed across all its websites and apps.
According to 2023 research by Consumer Reports, the hotel industry raked a record $2.9 billion in resort fees and other fees and surcharges in 2018. All 10 online travel agencies surveyed in the study only showed initial room rates without the mandatory fees, which appeared only after potential guests clicked through additional pages.
Recent data from AHLA shows that only 6% of hotels across the country charge a mandatory resort/destination/amenity fee, at an average of $26 per night.
AHLA is in support of creating a single standard for mandatory fee display in the lodging sector and said it will continue to advocate for this position to be reflected in the final bill.
