If you’ve ever booked a hotel room, vacation rental, or plane ticket online, you’ve likely encountered the frustrating experience of seeing a reasonable price suddenly balloon at checkout due to hidden charges. These surprise costs—like resort fees, cleaning charges, or seat selection fees—are commonly referred to as junk fees. They make it difficult to compare prices accurately and can leave consumers feeling misled.
But there’s good news: a new rule from the Federal Trade Commission (FTC) that took effect this month is changing that—at least for some industries. Hotels, vacation rentals, and ticketing platforms for live events are now required to display the full price upfront, including all fees. This means no more last-minute surprises at checkout for these types of bookings.
The FTC estimates that Americans spend 53 million hours each year trying to compare prices for event tickets and short-term lodging. With this new rule, consumers can now more easily compare total costs across different platforms and make informed decisions based on their budgets.
However, the improvements don’t apply across the board. Hidden fees are still prevalent in other areas like airline bookings, car rentals, and even movie tickets. So while the new rule is a step forward, it’s not a complete solution.
“People really feel nickel-and-dimed to death,” said Chuck Bell, a director at Consumer Reports who has long advocated against junk fees.
Here’s what you need to know:
Booking Hotels and Event Tickets Just Got Easier
Thanks to the FTC’s new regulation, travel and ticketing platforms like Hotels.com, Expedia, Airbnb, Ticketmaster, and StubHub now show the total cost—including taxes and all fees—upfront.
For example, a two-night stay at a Midtown Manhattan hotel listed on Hotels.com was quoted at $825. Clicking through to the checkout page revealed that this price included a $60 resort fee and taxes. Similarly, Airbnb now displays the full cost of a stay, including service and cleaning fees, right from the start.
While these fees haven’t disappeared, their transparency means you can better plan your spending and avoid unpleasant surprises.
Brian Kelly, founder of The Points Guy travel blog, recommends using third-party aggregators like Expedia to compare prices but booking directly with the hotel. If issues arise, hotel staff are often more responsive than third-party customer service teams.
The FTC focused on hotels and live event ticketing because of their history of deceptive pricing. “Consumers were frustrated with shopping for event tickets or hotel stays, only to be hit with expensive and mysterious fees when they go to pay,” the agency said. “Consumers now will have the whole truth.”
But Hidden Fees Still Exist
Unfortunately, the new rules don’t cover everything. Airline tickets, for example, remain a minefield of hidden charges.
A recent search on Alaska Airlines showed a $320 flight from New York to San Francisco. But selecting a seat added $200, bringing the total to $520. Airlines fall under the jurisdiction of the Department of Transportation (DOT), not the FTC. While the DOT has proposed similar transparency rules—like requiring airlines to disclose baggage and seat selection fees upfront—those regulations are currently on hold due to legal challenges from the airline industry.
“This is an industry that lives on sticker shock,” said William McGee, an aviation expert with the American Economic Liberties Project. “The gotchas just never stop.”
To avoid surprises, McGee recommends learning what fees are typical for each type of booking. Budget airlines, for instance, often charge extra for everything from carry-on bags to seat assignments. Tools like Google Flights allow you to filter out budget carriers, helping you find airlines with more straightforward pricing.
Hidden fees also crop up in other areas. Movie ticket websites often add a “convenience fee” that isn’t shown until you’ve selected your seat and showtime. Rental car companies may tack on charges for airport pickups and other services.
In short: stay vigilant.
Looking Ahead: Could Transparency Lower Prices?
While the FTC’s new rules may seem like a small win, they could lead to broader changes. Chuck Bell of Consumer Reports believes that as companies are forced to be more transparent, they may feel pressure to reduce or eliminate some of these fees altogether.
“It’ll be nice to see some of the fees reduced or eliminated,” he said.
For now, consumers should celebrate the progress while continuing to advocate for more transparency across all industries. And when booking online, always read the fine print.
Source: nytimes.com