No products in the cart.
Travel Guide
Travel Alert: U.S. Officially Bans Hidden Fees For Hotels And Vacation Rentals
19
Dec
Dec
Hot diggity dog! Our tax dollars have finally been put to good use by the very people we pay to represent us.
It’s been a contentious year in the world of politics, but no matter if you’re Team Donkey, Team Elephant, or toeing the line in the middle, surely we can all agree it’s long overdue for an overhaul of travel-related fees, especially sneaky ones!
I mean, wasn’t it popcorn-worthy to watch the CCOs of Frontier and Spirit squirm being grilled by the Senate for incentivizing gate agents to scope out oversized baggage?
Well, now it’s hotels’ and vacation rentals’ turn to make things right, so there’s no more sudden surprises.
The Federal Trade Commission (FTC) just announced a bipartisan rule officially banning so-called ‘junk fees’ just months after other traveler-friendly protections were implemented for flight delays and cancellations.
What Are ‘Junk Fees’?
Travel long enough, and you’ve probably encountered the ol’ bait-and-switch tactic at some point.
In fact, my girlfriend, who is a hotel manager, says add-on fees are guests’ most common complaint.
Fortunately, in this case, they’re bozos who didn’t read the clearly marked parking fee, but she also says there are many guests asking if her property charges a ‘resort fee‘ – Exhibit A for junk fees.
There have been many bad apples who hide charges at first glance only to tack them on your final bill, and you know exactly who the main culprit has been.
Is it a sin to tack on resort fees?
Ehh, maybe not. But ‘Sin City’ is the Mecca for sneaking in charges, where oftentimes tourists are caught by surprise with exorbitant fees higher than their room rate.
It’s similar to budget airlines selling $25 flights, only to tell you your bag is too large for a ‘carry-on’ as you board and charging you double (if not more) than what you spent on airfare before allowing you to take your seat.
In other words, a cheap trip can stack up really quickly! The FTC has taken notice and is putting a stop to it.
The bottom line is to check your bottom line. There will be so much more transparency moving forward.
Hotels and vacation rentals will still be able to charge extra fees, but you’ll know about them upfront.
“The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time”.
– FTC Chair, Lina M. Khan
How Hotels And Vacation Rentals Will Look Going Forward
Truth be told, after visiting nearly 40 countries, the research that goes into a trip can be more exhausting than the travel itself.
Confirming prices, scouring reviews, and navigating complicated policies can be such a drag to the point you might ask yourself if it’s worth taking a trip at all.
The good news is those days will now be few and few between – at least for domestic trips.
The U.S. obviously has no bearing on what Cancun, Punta Cana, or Timbuktu charge.
Let’s use Airbnb as an example. When I plan out a trip and want more space or an amenity that hotels don’t typically have, like in-unit washers and dryers, I opt for Airbnb.
When searching apartments, you’ll see nightly rates all over the map, quite literally and figuratively, but what you won’t see right away are the big question marks that reveal themselves on the final checkout page.
These can range from pet fees, extra guest charges, and the company’s much-maligned cleaning fees, which can often be outrageous.
I’ve even had a host try to charge me extra for their electricity bill, which was never discussed until after checking out.
Needless to say that Venmo request was denied, but you can see why the FTC has needed to step in.
The primary issue with hotels is the aforementioned resort fees, so rather than think you just scored the deal of a lifetime on a $99 beachfront villa; it will now be listed as, say, a $500 beachfront villa with an itemized breakdown of resort fees, etc.
The FTC’s press release states, ‘the most prominent price in an ad needs to be the all-in total price—truthful itemization and breakdowns are fine but should not overshadow what consumers want to know: the real total’.
Live Events Are Affected Too
In a day and age where travelers follow their favorite musical acts and sports teams, the FTC is tackling the same issues for live events.
For example, when I buy tickets for my beloved Padres, I never pay anything close to the price listed for tickets.
If I think I’m buying $30 outfield seats, that likely means $55 outfield seats with all the extra fees tacked on.
Now those tickets should be listed as $55 (or close) to avoid any headaches and surprises.
The FTC estimates that consumers across the board will save over 53 million hours of time and over $11 billion over the next decade.
The new rules have already passed in a 4 to 1 vote and will become effective 120 days after it’s published in the Federal Register.
↓ Elevate Your Travel↓
Sign Up Now For Travel Off Path Premium! No ads, VIP Content, Personal Travel Concierge, Huge Savings, Daily Deals, Members Forum & More!
✈️Join Our Travel Off Path Community Forum: Where travelers unite, ask questions, share experiences and even find like-minded travel buddies!
SUBSCRIBE TO OUR LATEST POSTS
Enter your email address to subscribe to Travel Off Path’s latest breaking travel news, straight to your inbox.
This article originally appeared on TravelOffPath.com
Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
