The lodging sector is encountering pressure from both political parties for a nationwide clampdown on concealed charges. This proposed legislation, a direct reaction to President Biden’s plea for enhanced cost clarity, seeks to level the field for reserving accommodations.
Presented by Senator Amy Klobuchar (D-MN) and Senator Jerry Moran (R-KS), the Hotel Fees Transparency Act would require lodging establishments to reveal all charges upfront during the reservation procedure. This encompasses those irritating resort charges that always appear to materialize at the final hour.
Advocates for the legislation contend that the existing framework makes it challenging for customers to contrast costs and reach well-informed choices. They hold the belief that this absence of openness harms consumers’ finances and permits hotels to engage in what essentially amounts to bait-and-switch strategies.
According to the proposed law, any organization promoting hotel accommodations, whether digitally or via alternative channels, would be obligated to incorporate all obligatory charges in their advertised rate. The Federal Trade Commission would be entrusted with upholding the law, while state attorneys general would also possess the power to initiate legal proceedings against offenders.
“U.S. citizens deserve to understand their expenditures when securing a hotel room,” stated Senator Klobuchar. “This bipartisan legislation will assist in improving openness so travelers can make knowledgeable choices.”
President Biden himself emphasized the necessity of tackling hidden charges during his State of the Union address in February, pledging that his administration would take action against these practices across various sectors.
This recently enacted legislation extends beyond traditional hotels. It targets those discreet online travel platforms, the ones that appear when you’re evaluating costs, and even those applications used for securing last-minute accommodations. If a website offers room rentals, regardless of duration—a single night, a few hours, or an entire week—they will be subject to these updated regulations.
However, the gaming sector has expressed concerns. They suggest this new law might inadvertently encompass them in its broad sweep. Consider this: casinos offer lodging, but their operations extend far beyond that.
The issue of concealed charges has been a long-standing grievance. Complaints regarding unexpected additions to hotel invoices have been voiced since at least 2016.
