Traveling to the United Kingdom is about to get more expensive thanks to the country’s plans to implement a new electronic travel authorization (ETA) fee this week.
19.12.2024 - 19:21 / nytimes.com / Sally France / Lina M.Khan
It is a common scenario for anyone booking online: That affordable hotel room or concert ticket suddenly gets pricey at checkout, when service and other fees get tacked on.
The Federal Trade Commission announced a final rule on Tuesday to end that practice. The rule requires hotels, short-term rentals and event ticketing vendors to include service fees, cleaning fees and resort fees — often characterized as “junk fees” — in the total prices that are advertised to consumers.
The rule, which becomes effective 120 days after it’s published in the Federal Register, prohibits companies from hiding the mandatory charges that often get tacked onto travel accommodations and live-event tickets. This means that instead of being able to advertise a $100 hotel room that has an added $50 resort fee, businesses must show the full $150 rate.
“Generally speaking, this is really good news for customers,” said Sally French, a travel expert with the online financial site Nerdwallet. “Often we would see an advertised room rate for $200, and then as you click through and get to the reservation stage, suddenly it’s $250.”
“People deserve to know upfront what they’re being asked to pay — without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” Lina M. Khan, the chair of the Federal Trade Commission, said in a statement announcing the rule.
Here’s what you need to know.
Chuck Bell, a director at Consumer Reports who has opposed junk fees for years, said that the original scope of the rule was broader, so it would have covered things like broadband internet fees and fees for movie tickets, which he called “highly frustrating to consumers.”
Traveling to the United Kingdom is about to get more expensive thanks to the country’s plans to implement a new electronic travel authorization (ETA) fee this week.
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Dec 23, 2024 • 10 min read
It’s finally happening: the end of resort fees as we know them. In a landmark announcement on Tuesday, the Federal Trade Commission (FTC) will now prohibit “junk fees,” an overarching term for hidden and misrepresented prices in the hotel, and short-term rental, and live-event ticketing, industries. For travelers, that includes all hotel booking websites and vacation rental platforms like Airbnb or Vrbo. The rule will require companies to disclose total prices upfront. Search results on an online travel agency, for instance, must include the maximum total of all mandatory fees or charges people will have to pay. With this move, consumers searching for hotels or vacation rentals should no longer be surprised by “resort,” “city,” or “service” fees inflating the advertised price. By requiring up-front disclosure of total price including fees, the FTC says comparison shopping will be easier, “resulting in savings for consumers and leveling the competitive playing field.” “People deserve to know up-front what they’re being asked to pay—without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” FTC Chair Lina M. Khan said in a statement. “The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time. The “junk fee” FTC investigation was first launched in 2022 with two rounds of public input and over 70,000 comments. This feedback was then taken into consideration before the final ruling announced today. Expect this to take effect in 120 days. However, it’s not yet clear exactly how the FTC will enforce these mandates.