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‘No Hidden Charges’ Is Newest Invoice to Goal Lodge Junk Charges



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When a lodge charge seems in Google Search or on a web based platform will it embody the junk charge that makes it dearer than a rival? That is what’s a stake in these payments for the journey business.

A bipartisan launched within the Home of Representatives Friday is the newest effort to use stress on the journey business to be extra clear in the way it shows and markets so-called junk charges.


The No Hidden Charges Act of 2023 would prohibit accommodations, short-term rental, on-line journey company and metasearch platforms from excluding obligatory charges (aside from taxes and different governmental prices) from the value of a reservation when advertising and marketing or displaying it.

The so-called No Hidden Charges Act, which was launched by U.S. Representatives Younger Kim, a Republican from California, and Kathy Castor, a Florida Democrat, doesn’t element when the obligatory charges could be required to be displayed. It doesn’t state whether or not these charges, which could vary from resort charges to scorching tub charges, should be proven up-front in a list or whether or not they would merely be accounted for on the reserving web page.

American Lodge & Lodging Affiliation CEO Chip Rodgers endorsed the laws. “The No Hidden Charges Act creates a single commonplace for obligatory charge show throughout the lodging business – from short-term rental platforms to on-line journey businesses, serps, metasearch websites, and accommodations,” Rodgers mentioned in a press release. “This laws would make sure that wherever customers store for lodging, obligatory charges are included within the worth they see.”


Large lodge chains have been topic to lawsuits in recent times over the allegedly misleading method they’ve charged company with obligatory resort charges. The affiliation mentioned Friday that solely 6% of accommodations within the U.S. cost resort charges.

The lodge affiliation additionally backs the Lodge Charges Transparency Act, which was launched in July by Democratic Senator Amy Klobuchar of Minnesota and Jerry Moran, a Republican from Kansas. It will tackle the difficulty of hidden resort charges for lodge stays. “It requires that the price of the rooms are there up entrance. Transparency, full disclosure. So you recognize precisely what you’re stepping into,” mentioned Senator Klobuchar in a press release.

In March this 12 months, two democratic senators launched the Junk Price Prevention Act, which might require full costs to be proven upfront and targets “shock” and “exorbitant” charges.


President Joe Biden and Federal Commerce Fee Chair Lina Khan have been advocating for proposals that may crack down on junk charges charged by occasions, accommodations, the lodging business and automobile leases, amongst others.

The FTC entered its “Rule on Unfair or Misleading Charges” into the Federal Register on November 9, kicking off a 60-day remark interval by January 8. At that time, employees must evaluate feedback and suggest a ultimate rule for the fee to vote on.

Skift Managing Editor Lex Haris contributed to this story.

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