PolicyBrief
H.R. 1479
119th CongressApr 28th 2025
Hotel Fees Transparency Act of 2025
HOUSE PASSED

This Act mandates that hotels and short-term rentals must clearly display the total, all-inclusive price upfront in all advertisements to prevent hidden fees.

Young Kim
R

Young Kim

Representative

CA-40

LEGISLATION

No More Hidden Fees: New Federal Rule Mandates Upfront Total Price for Hotels and Airbnbs Starting in 2026

If you’ve ever been ready to book a hotel or a short-term rental online, only to have the price jump by $50 or $100 right before you hit 'Confirm,' you know the frustration of hidden fees. That practice—known as 'drip pricing'—is exactly what the Hotel Fees Transparency Act of 2025 aims to stop.

This bill sets a new federal standard for advertising lodging prices across state lines. Simply put, if a hotel, Airbnb host, or booking site (like Expedia or VRBO) shows you a price, that price must be the Total Services Price—meaning the base room rate plus all mandatory service fees. The only things that can be added later are government taxes and charges for optional extras you choose, like parking or room service. This total price must be clear and visible the very first time you see the listing price, and it has to stay that way through the entire booking process.

The End of the Hidden 'Resort Fee'

This is a huge deal for travelers. Right now, hotels often advertise a low base rate, then surprise you with mandatory 'resort fees,' 'amenity fees,' or 'cleaning fees' only at the final checkout screen. Under this new rule (which takes effect 450 days after the bill becomes law, roughly 2026), those mandatory charges must be baked into the advertised price.

Think about it: If you’re a busy professional trying to compare three different hotels for a business trip, this bill means you can trust the first number you see. You won't have to click through four pages, enter your credit card information, and wait for the final screen to find out the real cost. For a family budgeting a vacation, this makes comparing options honest and immediate, saving both time and money.

Who’s Keeping Score?

To make sure hotels and booking sites play by the rules, the bill gives enforcement power to two heavy hitters. First, the Federal Trade Commission (FTC) will treat violations as deceptive advertising. Second, State Attorneys General (AGs) are empowered to sue on behalf of residents in their state who are harmed by non-transparent pricing. This dual enforcement structure means there are multiple watchdogs looking out for consumers, which is a strong deterrent against hiding fees.

There’s a specific provision for major booking sites—the middlemen like Priceline or Booking.com. If they rely on a hotel to provide the price and that hotel gives them the wrong number (leaving out a mandatory fee, for example), the booking site has a defense. They won't be penalized if they can show they had procedures to get the right price, honestly relied on the bad info, and quickly fixed the error once they found out. This is a practical recognition that these sites are often just passing along data, but that “quickly fixed the error” part is a bit subjective and could be an area where disputes arise.

What About Existing State Laws?

This federal rule essentially sets the floor for transparency. It preempts (overrides) any state or local law that has a weaker standard for price advertising. However, if a state already has a law that requires stricter fee disclosure than this federal act, that state law can remain in place. The goal is to ensure a nationwide minimum standard of transparency, while still allowing states to go further if they choose. This means that if you live in a state that already has strong consumer protection laws against hidden fees, those protections won't be watered down by the new federal standard.