Hotel Junk Fees: The Crackdown Continues

For years, travelers have faced a frustrating reality when booking accommodations. You find a hotel room listed for \$150 a night, only to reach the final checkout screen and see the price balloon to \\$225 due to a vague “resort fee” or “destination charge.” Fortunately, the era of deceptive drip pricing is coming to an end. New state laws and federal regulations are forcing the hospitality industry to display the full price of a stay right from the start.

The End of Drip Pricing

The practice of advertising a low base rate and adding mandatory fees later in the booking process is known as “drip pricing.” This tactic makes it nearly impossible for consumers to comparison shop effectively. However, the legal environment shifted dramatically in 2024.

California Senate Bill 478

The most significant change comes from California. On July 1, 2024, Senate Bill 478 (SB 478) went into effect. This legislation prohibits businesses from advertising a price that is lower than the actual price a consumer will have to pay.

While this law applies to ticket sellers and food delivery apps, the hotel industry is a primary target. Under this law, a hotel in San Francisco or Los Angeles cannot list a room for \$200 if there is a mandatory \\$45 “urban amenity fee.” They must list the room as \$245. If they fail to do so, they face significant fines. Because California is such a massive market, many national chains are updating their pricing displays nationwide to maintain a consistent booking experience.

The Federal Trade Commission (FTC) Proposal

On the national stage, the Federal Trade Commission proposed a rule in late 2023 specifically targeting unfair or deceptive fees. The proposed rule would ban businesses from hiding mandatory fees and require them to disclose the total price upfront. While this is a regulatory rule rather than a congressional act, it signals to the industry that the federal government is watching. The White House has also championed the “Junk Fee Prevention Act,” aimed at eliminating excessive online ticket fees and resort fees that exceed the value of the service provided.

What Exactly Are These Fees?

Hotels often use creative names to justify these mandatory surcharges. You might see them listed on your bill under various labels:

Resort Fees: Originally designed for beach resorts with expansive pools and towel services, these are now common in city center hotels that lack such amenities.
Destination Fees: Common in cities like New York and Chicago.
Amenity Fees: These supposedly cover costs for things like Wi-Fi, gym access, or printing boarding passes.
Housekeeping Surcharges: Some properties have begun separating cleaning costs from the room rate.

The issue is rarely the fee itself, but rather the disclosure. Travelers generally understand they have to pay for services. The anger stems from being told a room costs one price, only to find out it is actually 30% more expensive due to a fee for “complimentary” Wi-Fi that creates a false low price during the search process.

How Major Hotel Chains Are responding

The industry is rapidly adapting to avoid legal penalties and consumer backlash. Several major players have already altered how they present prices.

Marriott International: Following a settlement with the Pennsylvania Attorney General, Marriott updated its website and app to show the total price, including room rates and mandatory fees, as the first price you see. They explicitly state “includes taxes and fees” in many search results.
Hyatt: Similar to Marriott, Hyatt committed to transparency regarding destination fees in their pricing displays to comply with legal pressures.
MGM Resorts: Known for substantial resort fees in Las Vegas, MGM and other casino operators are under pressure to ensure their advertised rates on third-party sites and their own portals reflect the mandatory daily charges.

If you browse these sites today, you will likely see a toggle switch or a default setting that says “Show rates with taxes and fees.” This transparency helps you see that a \$180 room at a Hilton is actually cheaper than a \\$150 room at a boutique hotel that charges a \$50 nightly fee.

What This Means for Your Wallet

It is important to understand that these laws do not necessarily ban the fees. They simply require transparency.

Better Comparison Shopping: You can now compare apples to apples. If Hotel A is \$250 total and Hotel B is \\$260 total, you know exactly which is cheaper without clicking through five pages of checkout screens.
Price Stability: The “sticker shock” at the front desk is eliminated. The credit card hold authorization should match what you expected to pay when you booked.
Potential for Lower Rates: Economic theory suggests that when consumers can clearly see the total price, competition increases. Hotels can no longer lure you in with a fake low rate, which may force them to compete on the actual total value of the stay.

Tips for Navigating the Transition

Even with new laws, travelers should remain vigilant. The implementation of these rules can be messy, and third-party booking sites (OTAs) operate under complex regulations depending on where they are based.

Check the Fine Print on OTAs: Sites like Expedia, Booking.com, and Priceline are generally compliant, but smaller aggregators might not be. Always look for text that says “includes taxes and fees.”
Ask for Waivers: If you arrive at a hotel and the “resort fee” covers amenities that are closed (like a pool under renovation) or services you cannot use (like Wi-Fi that is down), ask the front desk manager to waive the fee. They are not legally obligated to do so in all cases, but many will as a customer service gesture.
Join Loyalty Programs: Some hotel chains waive resort fees for members who book using points. For example, Hilton Honors and Hyatt World of Hyatt typically waive resort fees on award stays booked purely with points.

Frequently Asked Questions

Does the new legislation ban resort fees entirely? No. The legislation, specifically California SB 478, bans hidden fees. Hotels can still charge a resort fee, but they must include it in the advertised price. For example, they cannot advertise a \$100 room and add a \\$30 fee later; they must advertise the room as \$130.

Do these rules apply to Airbnb and VRBO? Yes. Short-term rental platforms are also subject to transparency laws. They must disclose cleaning fees and service fees in the initial search results so that the user sees the total cost of the stay before clicking “reserve.”

What if I booked a hotel before the law took effect? If you booked a non-refundable room before July 1, 2024, specifically in California, the terms at the time of booking usually apply. However, if you are booking now for a future trip, the price displayed must be inclusive of all mandatory charges.

Are taxes included in the “upfront price”? Government-imposed taxes are treated slightly differently than junk fees. While junk fees (imposed by the hotel) must be in the headline price, government taxes are often still added at the final step, though many platforms now offer a “total including taxes” view for clarity.

Does this apply to international hotels? California’s law applies to businesses selling to California consumers or operating in California. However, when booking a hotel in Europe or Asia, local laws apply. Fortunately, the European Union and countries like Australia have had strict “all-inclusive pricing” laws for years, meaning the price you see is almost always the price you pay.