A Welcome Legislation: AHLA Champions New Federal Law for Fee Transparency

AHLA members are used to telling us—and hearing from us—about federal laws that would make it harder for them to do business: harder to hire and retain employees, harder to invest in growth, harder to welcome guests and offer them the best possible experience. But AHLA is equally active in seeking out, proposing, and advocating for legislation that will help the industry and its customers, and we’re gratified to see Congress act on a bill that does just that. 

The House of Representatives approved H.R. 1479, the Hotel Fees Transparency Act, on April 28, and we hope that the Senate will pass its companion, S. 314. The Hotel Fees Transparency Act is the product of years of work by its primary sponsors, Representatives Young Kim (R-CA) and Kathy Castor (D-FL), and Senators Amy Klobuchar (D-MN) and Jerry Moran (R-KS). It is that rare piece of legislation that would deliver both consumer protection and regulatory burden relief; AHLA championed its introduction last Congress and its progress thus far. 

The legislation is straightforward: it sets a single national standard for anyone advertising the price of a short-term lodging reservation and requires that this advertised price include every mandatory fee. Violations will be subject to enforcement by the Federal Trade Commission (FTC) as unfair or deceptive practices.

Why a Federal Law Is Necessary

Most hotels don’t charge mandatory additional fees. In fact, a 2022 analysis found that only 6 percent of the nation’s more than 62,000 hotels were charging these fees—and where they did, the fees averaged $26 per night. These fees—variously called resort fees, amenity fees, beach fees, etc.—cover the costs of specific and often unique amenities and services such as pools, beach access, parking and shuttle services, food and beverage credits, and more—and generally at lower rates than if the guests were buying these amenities individually. A large majority of hotel guests surveyed in November 2022—83 percent—said they were happy with current levels of fee transparency, and 80 percent said they were willing to pay these fees if the amenities were worthwhile. Nevertheless, many of the largest hotel chains AHLA represents have implemented or announced plans to implement changes to ensure that mandatory fees are displayed upfront in pricing offered to consumers through their own channels. 

But hotel fees are not the only fees travelers might encounter. While hotels already comply with FTC guidance on disclosure of fees before booking, it has not been clear that other providers have been doing so. Guests often book hotel rooms through third-party providers such as Expedia, Google, or Booking.com, which may assess fees of their own. And mandatory additional fees for cleaning and other services are common among short-term rental listings; at year-end 2022, more than half of Airbnb listings were charging mandatory cleaning fees. 

Failure to disclose these fees at the time of booking makes it impossible for travelers to compare prices accurately. At hearings in both the House and the Senate, lawmakers heard stories from consumers who learned about these fees only when it was too late for them to change their reservations. 

This was—is—clearly unacceptable. But efforts to address it at state and local levels have been fragmented, inconsistent, and without clear enforcement channels. FTC guidance already governs hotel fee disclosures. The obvious solution was the one proposed by Representatives Kim and Castor and Senators Klobuchar and Moran: clarify that price disclosure applies to all mandatory fees and to all providers of short-term lodging. 

The Hotel Fees Transparency Act will ensure that any regulation mandating fee display and disclosure will apply consistently to all accommodation providers, advertisers, and broader industry participants so that consumers see the same information in the same way, regardless of how they plan their travel. It will level the competitive playing field, provide a single national standard for hoteliers, and allow consumers to compare costs accurately. It will be a law that benefits everyone, and AHLA is proud to have played a role in its eventual enactment.