The U.S. Senate Committee on Commerce, Science & Transportation has approved the Hotel Fees Transparency Act, which seeks to establish transparency in extra fees while booking hotels rooms in the U.S.
The bill now awaits a full Senate vote.
The bill seeks to prohibit hotels, short-term rentals, metasearch platforms and online travel agencies from excluding mandatory fees, besides taxes and other government charges, from the price of a room reservation when displaying or advertising the charges.
The vote in the Senate is a significant step towards a more transparent booking process and a level-playing field in the lodging industry, the American Hotel & Lodging Association (AHLA) said in a statement.
“We thank Sens. Klobuchar and Moran for their leadership on this issue, and we urge the Senate to quickly bring this bill to the floor for a vote. The House has already passed similar common sense legislation and we look forward to working with both chambers to advance this bill to the president’s desk,” said AHLA Interim President & CEO Kevin Carey.
The Senate Committee on Commerce, Science & Transportation on July 31 approved in a bipartisan vote the Hotel Fees Transparency Act, which was introduced by Sens. Amy Klobuchar, D-Minn., and Jerry Moran, R-Kan. In June, the U.S. House of Representatives passed the bill, introduced by Reps. Young Kim, R-Calif., and Kathy Castor, D-Fla.
AHLA has been supporting the creation of a single standard for mandatory fee display across the lodging industry. The association’s latest data showed that only 6% of hotels in the U.S. charge a mandatory resort/destination/amenity fee, at an average of $26 per night.
Several hotel chains being criticized for the lack of transparency when displaying or advertising room charges. In 2023, Hyatt was sued for violating Texas consumer protection laws for its advertisements of hotel room rates. This was in addition to two more lawsuits for hidden fees. Marriott and the State of Texas entered into an agreement in 2023 to prominently display “resort fees” and increase transparency in its booking process and advertisements. Hilton said it was working to ensure all compulsory fees are prominently displayed in all its apps and websites.