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On Tuesday, the Federal Trade Commission finalized a sweeping rule requiring various industries, including hotels, to disclose all fees in advertised prices.

The final rule would prohibit hotels from excluding resort fees, also known as “junk fees,” in advertised rates for short-term stays.

In addition to hotels, this rule will also apply to vacation rentals, such as those booked through Airbnb, as well as tickets to live events such as shows or sporting events.

Specifically, the rule requires businesses to most clearly state the total cost when disclosing pricing information to prevent “bait-and-switch pricing tactics such as trickle pricing and misleading fees,” the FTC said. Press release announcing the rule.

According to the rule, according to the FTC, the rule requires “consumers to clearly and unambiguously disclose the nature, purpose, identity, and amount of the fee before they agree to pay.” “For example, businesses that exclude shipping or taxes from an advertised price must clearly and prominently disclose those fees before the customer enters their payment information.”

Enforcement in other industries will be conducted on a case-by-case basis as per the agency.

FTC Chairman Lina M. “The FTC’s rule will put an end to junk fees around live event tickets, hotels and vacation rentals,” Khan said in a statement.

This rule does not prohibit lodging groups or event operators from issuing fees or engaging in pricing strategies.

“We all know the experience of encountering hidden fees at the last stage of checkout — these junk fees that sneak up on your bill and companies overpay you because they can,” President Joe Biden said in an emailed statement. “It increases fees, takes real money out of Americans’ pockets.”

This rule will take effect 120 days after publication in the Federal Register.

Implementation, or whether the rule remains in place, will ultimately depend on the Trump administration. That can be challenged, as there are similar rules in the travel space.

In April, the US Department of Transportation issued separate, airline-specific rules requiring airlines to display the full ticket price (aka fare plus certain “essential” incidentals) upfront.

In response, the airlines sued, and a federal appeals court put the rule on hold pending a final judicial outcome. This rule is unlikely to be implemented under the Trump administration.

In anticipation of the FTC rule, Hilton, Hyatt, IHG and Marriott disclose fees in advance in bookings.

“IHG’s channels already display all mandatory fees in the total price advertised to customers, so IHG-branded hotels are prepared for this ruling,” an IHG spokesperson said by email.

A Hilton spokesperson said: “We know that customers value transparency, and in 2023, Hilton has made proactive changes to our technology to advance mandatory fee displays on all Hilton websites and apps. We continue to advocate for the upfront display of fees— All inclusive pricing on all booking platforms selling our inventory.”

Representatives for Hyatt and Marriott did not respond to requests for comment by the time of publication.

Since 2022, Airbnb has provided travelers with the option to filter results using their Total Price Display feature, which shows fees before taxes and other government fees in search results, on maps, filters, listing pages, and in wishlists. This includes a price breakdown including fees charged by hosts, Airbnb service fees, discounts and taxes.

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