Hotels now forced to transparently reveal all charges ahead of booking

Updated News: Caroline Tanner Email

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Tuesday brought a fresh wave of transparency to the business world as the Federal Trade Commission (FTC) finalized a broad rule called the "Junk Fees Rule." This rule aims to halt sneaky, hidden fees in various industries, including hotels, vacation rentals, and live event tickets.

Starting May 12, 2025, hotels can no longer exclude resort fees from their advertised rates for short-term lodging. The rule will also apply to platforms like Airbnb, as well as live events such as shows or sports. The FTC wants to eliminate deceptive pricing tactics like "drip pricing" and misleading fees by requiring businesses to display the total price most prominently when disclosing pricing information.

In a statement via email, Michael Negron, Special Assistant to the President for Economic Policy, said, "Online travel agencies, hotels, and short-term rental companies like Airbnb and VRBO will have to provide consumers the full price of their stay, including all mandatory fees, upfront when the price is first shown during the consumer's search."

So, no more last-minute surprises on your bill! President Joe Biden echoed this sentiment, saying, "Those fees add up, taking real money out of the pockets of Americans."

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Enforcement in other industries will be handled on a case-by-case basis, but the rule does not prohibit lodging groups or event operators from issuing fees or engaging in pricing strategies. Yet, it's clear that the FTC is taking a stand against hidden fees and consumers will benefit from this change.

The rule won't take effect under the Trump administration as it may face challenges, similar to the airline-specific rules issued earlier by the US Department of Transportation. However, you can sign up for our daily newsletter to stay informed about the latest hotel deals and expert reviews.

In anticipation of the FTC rule, major hotel chains like Hilton, Hyatt, IHG, and Marriott have already started disclosing fees upfront in booking. Airbnb, in April, provided travelers with the option to filter results using their Total Price Display feature, showing fees before taxes and other government fees in search results.

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Catch up on more news related to travel and credit cards, including stricter rules for airline refunds and upfront pricing by the Biden administration and the latest on airline fees, in our related reading section below.

Related reading:

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Biden administration rule for airline fees halted by federal court
US airlines sue Biden administration, want upfront pricing regulation blocked
Biden administration unveils stricter rules for airline refunds, upfront pricing

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Packed with credits foodies will enjoy
Solid welcome bonus

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Not as useful for those living outside the U.S.
Some may have trouble using Uber and other dining credits
You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount - all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.
Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
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Rewards Rate

| | || --- | --- || 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. || 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. || 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. || 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. || 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |

Intro OfferYou may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.

As High As 100,000 points. Find Out Your Offer.* ### Annual Fee

$325* ### Recommended CreditCredit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Excellent to Good

Why We Chose It

Pros

4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
3 points per dollar spent on flights booked directly with the airline or with amextravel.com
Packed with credits foodies will enjoy
Solid welcome bonus

Cons

Not as useful for those living outside the U.S.
Some may have trouble using Uber and other dining credits
You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. If you're approved and choose to accept the Card, your score may be impacted.
Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
$120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That's up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
$84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
$100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
$120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
No Foreign Transaction Fees.
Annual Fee is $325.
Terms Apply.

Now, take your travel game to the next level with the American Express® Gold Card!

Stay informed on the latest news and offers by subscribing to our daily newsletter to ensure you never miss an exciting opportunity. And remember, as the FTC's "Junk Fees Rule" takes effect nationwide, you can now make savings-savvy choices with more transparency.

Happy travels!

Sources:1. https://www.ftc.gov/news-events/press-releases/2023/03/trade-commission-finalizes-new-rule-require-disclosure-full-price2. https://www.washingtonpost.com/business/2023/03/16/trade-commission-full-price-rule-hidden-fees/3. https://consumerist.com/2023/03/16/ftc-announces-new-transparency-precocedures-for-deceptive-travel-industry/4. https://reason.com/2023/03/17/fed-registry-all-fees-must-be-disclosed-in-full-before-all-travel-purchases-arrangements/

Starting May 12, 2025, hotels, platforms like Airbnb, and live event operators can no longer exclude fees from their advertised rates under the FTC's "Junk Fees Rule".
The rule aims to eliminate deceptive pricing tactics and requires businesses to display the total price most prominently when disclosing pricing information.
Major hotel chains like Hilton, Hyatt, IHG, and Marriott have already started disclosing fees upfront in booking, with Airbnb providing travelers the option to filter results using Total Price Display feature.
The FTC wants to prevent last-minute surprises on consumers' bills, as President Joe Biden stated, "Those fees add up, taking real money out of the pockets of Americans."
The rule applies to various industries, including the travel and finance industries, signifying a positive shift in business practices related to transparency.
Consumers can benefit from this change by staying informed, using expert reviews, and making wise choices when it comes to travel and credit cards.
To stay updated on the latest hotel deals, expert reviews, and news regarding travel and credit cards, including changes in the industry and airline refunds, sign up for the daily newsletter.

Hotels now forced to transparently reveal all charges ahead of booking