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THE FEDERAL TRADE Commission finalized a rule on Tuesday requiring industries, including hotels, to disclose all fees upfront in advertised prices. The rule bans hotels from excluding resort fees, often labeled "junk fees," from advertised rates for short-term lodging. It takes effect 120 days after publication in the Federal Register. The rule mandates businesses to prominently display the total price to prevent "bait-and-switch tactics, such as drip pricing and misleading fees," the FTC said in a statement. Outgoing President Joe Biden said he has always prioritized families and hardworking Americans and urged his administration to focus on lowering costs. "Today, the Federal Trade Commission is doing just that by banning hidden junk fees when you book a hotel or purchase event tickets," Biden said. "We all know the experience of encountering a hidden fee at the very last stage of checkout-these junk fees sneak onto your bill, and companies end up making you pay more because they can. Those fees add up, taking real money out of the pockets of Americans."

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THE U.S. HOUSE of Representatives recently unveiled the 'No Hidden FEES Act of 2023' (H.R 6543), compelling the travel industry to enhance transparency regarding so-called "junk fees." This legislation is designed to improve pricing transparency for customers seeking short-term lodging, including hotels, motels, inns, and privately-owned vacation rentals. Meanwhile, the American Hotel & Lodging Association extended its support for the bill, which was introduced by Reps. Young Kim and Kathy Castor on Friday. "As Americans grapple with persistent high inflation, the last thing families need after budgeting for trips is to be hit with costly last-minute fees," Kim said. "The No Hidden FEES Act would rectify this issue, offering cost transparency for consumers so they know the upfront lodging expenses. I will continue the fight to make life more affordable for families in Southern California and throughout our nation."

DOZENS OF STRIKING hotel workers arrived in Washington on Sept. 23 to meet with Congress members, urging action against hotel resort fees. More than 4,000 workers are striking at Hilton, Hyatt and Marriott hotels in Honolulu, San Diego and San Francisco, vowing to continue until new contracts are secured. Many of the workers traveled from these strike-affected cities, according to UNITE HERE, the union representing hotel, casino and airport workers across the U.S. and Canada. The union is lobbying against legislation backed by hotel corporations that would limit states' ability to regulate resort fees. Hotel workers argue that resort fees, along with COVID-era service and staffing cuts, undermine the hospitality that guests expect. The workers' visit included a briefing for congressional staff, hosted by Sen. Bernie Sanders. "We're here because guests and workers share a common goal - we want hotels to reverse COVID-era cuts, protect guests from resort fees, and refocus on providing the best possible hospitality," said Gwen Mills, UNITE HERE's president.

AAHOA AND THE American Hotel & Lodging Association welcomed the passage of the No Hidden FEES Act on June 11. The legislation aims to establish a uniform standard for transparent and mandatory fee displays across the lodging industry. The bill, introduced by Reps. Young Kim (R-California) and Kathy Castor (D-Florida), had unanimous approval from the House Energy & Commerce Committee in December and passed with bipartisan support on the House floor. AAHOA said that the legislation would empower its hotelier members and guests to make informed decisions and safeguard their financial interests.

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DONALD TRUMP WILL return to the U.S. presidency for a second, non-consecutive term in January, making him the first to do so since Grover Cleveland. Hotel associations such as AAHOA and the American Hotel & Lodging Association were quick to offer congratulations. In September, both groups were in Washington, D.C., to advocate for legislation important to the industry. Some of the proposed legislation that AHLA is supporting include: The Closing the Workforce Gap Act would replace the arbitrary annual cap of 66,000 available H-2B temporary visas with a new, needs-based system. Extending a pass-through tax deduction, 199A, which is set to expire in 2025 and provides tax relief to franchisees and other hotel small businesses. Maintaining the like-kind exchange, section 1031, which allows hoteliers to defer capital gains taxes when they sell one property if they roll the proceeds into the purchase of a larger one. According to AHLA, the exchange helps create new jobs and contributes to economic growth. The Hotel Fees Transparency Act and the No Hidden FEES Act would establish a single and transparent standard for mandatory lodging fee display and an even competitive playing field for hotels, short term rentals, online travel agencies, and metasearch sites.

URBAN PARK HOTELS recently introduced "Welcome Inns of America", a new membership-affiliated hotel and motel brand designed for the economy segment. The conversion-friendly option provides owners with many of the benefits and services of a franchise, Urban Park said, without the long-term commitment, upfront costs, ongoing fees or strict mandates. "Welcome Inns of America" offers simplified standards and a lower membership fee structure, not tied to property revenues like typical hotel franchises, Urban Park said in a statement. "The new brand is for hotel owners who are good operators but cannot afford the initial fees or renovation costs associated with a franchise-a segment that has been virtually ignored in the industry for years," said John Parkin, Welcome Inns of America's president.

THE U.S. HOUSE of Representatives passed the bipartisan Hotel Fees Transparency Act of 2025, mandating that hotels and short-term rentals disclose total booking costs upfront. The bill, introduced by Representatives Young Kim (R-California) and Kathy Castor (D-Florida), received support from industry groups such as AAHOA and the American Hotel & Lodging Association. AAHOA commended the passage, noting that the association "has long advocated for fairness and transparency in pricing and believes this legislation marks a significant step toward ensuring travelers have clear, accurate information when booking accommodations." "Transparency is key to building trust with our guests and to ensuring a level playing field across the hospitality industry," said Kamalesh "KP" Patel, AAHOA's chairman. "AAHOA will always champion policies that promote fairness and empower consumers to make informed decisions. This is an issue that transcends party lines, as today's vote powerfully demonstrates. We are grateful to lawmakers from both sides of the aisle in the House for passing this bill."

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A U.S. SENATE committee recently passed a bipartisan bill aimed at achieving pricing transparency for hotels, short-term rentals, and online travel platforms. However, the Senate failed to advance the Tax Relief for American Families and Workers Act, drawing criticism from the American Hotel & Lodging Association. The Committee on Commerce, Science & Transportation's approval of the Hotel Fees Transparency Act 2023 comes amid criticism of several hotel chains for lacking transparency in displaying room charges. AHLA called it an important step toward a more transparent booking process and a level playing field across the lodging industry. The bill, introduced by Sens. Amy Klobuchar, D-Minnesota, and Jerry Moran, R-Kansas, on July 31, now awaits a full Senate vote.

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Recently, after the Union government gave a nod on agent commission, IndiGo is set allow a transaction fee of two per cent on each ticket. The Gurgaon-based airline communicated that this charge would be applicable on fuel charge and basic flight fare. The commission fee will remitted to agents after completion of a month against the sale of tickets.

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