Saturday, May 17, 2025
US travelers can now enjoy greater transparency and protection when booking hotels, vacation rentals, and event tickets, thanks to a groundbreaking regulation by the Federal Trade Commission. Effective May 12, two thousand twenty-five, the new rule makes it illegal for companies to advertise deceptively low prices that exclude mandatory fees such as resort charges, cleaning fees, or service surcharges. This long-awaited measure puts an end to hidden costs that have frustrated consumers for years, ensuring that all compulsory fees are clearly included in the initial advertised price. By enforcing honest pricing, the Federal Trade Commission aims to create a fairer and more competitive marketplace across the US travel and hospitality sectors.
US Travelers Gain New Protections as FTC Cracks Down on Hidden Hotel and Travel Fees
Travelers across the United States are finally seeing long-awaited relief from misleading pricing tactics used by hotels and vacation rental platforms. As of May twelfth, two thousand twenty-five, the Federal Trade Commission (FTC) has officially implemented a landmark regulation aimed at eliminating so-called “junk fees” — hidden charges that are tacked onto bookings after the initial advertised price.
These surprise fees, often labeled as “resort fees,” “destination charges,” or “amenity fees,” have long drawn criticism from consumers. Many have experienced the frustration of seeing a room advertised for two hundred dollars, only to discover at checkout that the total bill has ballooned to two hundred fifty dollars or more due to undisclosed charges for services like Wi-Fi, gym access, or pool use.
Ending Bait-and-Switch Pricing in Hospitality and Entertainment
Under the FTC’s new rule, such pricing tactics are now illegal. Businesses in the hospitality and event industries must include all mandatory fees in their advertised prices from the outset. This rule seeks to end the common bait-and-switch model where consumers are enticed by artificially low prices only to be hit with unexpected fees later in the transaction process.
For example, if a hotel charges a fifty-dollar resort fee, it must now advertise the total nightly cost as four hundred dollars — not three hundred fifty — and clearly indicate that the price includes the mandatory fee. This shift gives travelers a more honest and transparent look at what they will actually pay, empowering them to make informed comparisons between different booking options.
Broader Impact Beyond Hotels
While the rule has made headlines for its impact on hotel pricing, it also extends to other sectors where hidden fees have become standard practice. Vacation rental platforms, such as those offering homes or condos for short stays, must now include cleaning fees and other non-optional charges in the initial price listings.
In the live entertainment industry, companies like Ticketmaster must also follow suit. Ticket sellers are now required to include all service charges and administrative fees in the first price consumers see, ensuring that fans are not caught off guard at checkout with a total far above what was originally advertised.
Penalties for Noncompliance and How Consumers Can Act
The regulation grants the FTC the authority to enforce compliance with strict financial consequences. Companies found violating the rule can be fined more than fifty thousand dollars per offense. This creates a strong deterrent for businesses that might otherwise attempt to skirt the new transparency requirements.
Consumers who still encounter deceptive pricing or hidden fees can report these violations directly through the FTC’s website or by contacting the Consumer Financial Protection Bureau. These agencies have established channels to handle such complaints and are expected to monitor compliance closely as the rule takes effect.
A Victory for Travelers and Advocates
This new rule follows years of public outcry, legal pressure, and consumer advocacy calling for clearer, more honest pricing in the travel and event industries. Advocacy groups have argued that hidden fees distort competition and prevent consumers from making truly informed decisions.
By mandating full price transparency, the FTC aims to create a level playing field where travelers are not misled by unrealistic initial prices. The regulation marks a significant shift in how hotels, ticket vendors, and rental platforms present pricing — making it easier for individuals to plan their trips and purchases without unwelcome financial surprises.
US travelers will now see the true cost of hotels and rentals upfront as the Federal Trade Commission bans hidden fees, ending years of deceptive pricing. The new rule ensures all mandatory charges are included in advertised prices to protect consumers and promote transparent competition in the travel industry.
With these changes now in place, consumers can expect greater clarity when booking accommodations, buying event tickets, or reserving vacation properties. The move represents a meaningful step toward a more honest and competitive travel marketplace in the United States.
