Dive Brief:
- The U.S. Senate Committee on Commerce, Science and Transportation approved the Hotel Fees Transparency Act of 2023 on Wednesday. The bipartisan bill, which would prohibit unfair and deceptive advertising of prices for hotel rooms, now awaits a full Senate vote.
- The act targets what some critics call “junk fees,” the mandatory and hidden costs tacked on to room rates at hotels. Sen. Amy Klobuchar (D-MN) and Sen. Jerry Moran (R-KS) introduced the bill in July 2023.
- On Wednesday, American Hotel & Lodging Association Interim President and CEO Kevin Carey called the Senate Committee’s approval a “step toward a more transparent booking process” for hotel guests. The movement on the bill follows recent action on similar legislation.
Dive Insight:
The passage of the Hotel Fees Transparency Act of 2023 would not only benefit hotels, but also short-term rentals, online travel agencies and metasearch sites, Carey explained in a statement.
According to AHLA, the bill would establish a comprehensive single standard for transparent and mandatory fee displays across the lodging industry.
“We urge the Senate to quickly bring this bill to the floor for a vote,” Carey said. “The House has already passed similar commonsense legislation and we look forward to working with both chambers to advance this bill to the president’s desk.”
In June, the U.S. House of Representatives passed the No Hidden FEES Act, which has a similar aim to create a single standard for transparent fee displays across the lodging industry.
AHLA, along with the Asian American Hotel Owners Association, applauded the House’s passing of the No Hidden FEES Act, with AAHOA calling it a “significant win.”
AAHOA Chairman Miraj S. Patel told Hotel Dive the organization “welcomes the passage of the Hotel Fees Transparency Act.”
“Similar to the No Hidden FEES Act that passed in the U.S. House earlier this year, this legislation represents a significant victory for our 20,000 members by helping to level the playing field between the hotel and short-term rental industries,” Patel said in a statement. “By requiring full disclosure of all fees, guests can make more informed decisions when choosing accommodations.”
President Joe Biden and his administration have vowed to continue to crackdown on “junk fees” across lodging and other industries. And in California, Gov. Gavin Newsom recently banned “junk fees,” signing into law a bill that forbids offering a price for a good or service that does not include all mandatory fees or charges. That went into effect July 1.
