A bipartisan Senate coalition is advocating for legislation to eliminate concealed resort charges added to hotel invoices, mirroring President Biden’s plea for upfront cost clarity in the sector. The legislation, titled the Hotel Fees Transparency Act, seeks to establish a national benchmark for revealing the complete cost of a hotel accommodation upfront, which Biden labeled “unnecessary charges” in his State of the Union speech. Presently, recommendations on resort fee disclosure are mostly optional, resulting in bewilderment and annoyance among vacationers. According to the proposed law, any organization engaged in promoting hotel accommodations or short-term rentals would be obligated to plainly reveal the total room cost during the reservation procedure. The Federal Trade Commission would be tasked with enforcing the statute, and state attorneys general would be authorized to initiate legal proceedings for infringements. “Frequently, Americans arrive at the hotel checkout only to discover a multitude of unexpected charges that make it unfeasible to contrast prices and comprehend the actual expense,” stated Senator Amy Klobuchar, a Minnesota Democrat, who presented the legislation alongside Senator Jerry Moran, a Kansas Republican. This bipartisan measure would aid travelers in making educated choices by encouraging openness and impartiality in hotel pricing.
This recently enacted legislation won’t solely impact traditional lodging establishments. Digital travel behemoths and internet search providers are apprehensive, and justifiably so: the legislation encompasses any online platform that facilitates booking accommodations for a single night, a limited duration, or even an extended period. In essence, if a platform displays lodging options alongside corresponding rates, it likely falls within the scope of this law.
The gaming sector has expressed concerns, conveying to government officials that this legislation could have unintended consequences due to the evolving and multifaceted interpretations of the term “hotels” in contemporary times.
However, this issue is not unprecedented. Consumer grievances regarding concealed resort charges have persisted for years – dating back to at least 2016.
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