From July 1, hotels in the U.S. will have to adhere to a California state law that mandates the upfront disclosure of the total cost, including all mandatory fees, of hotel rooms and other travel services like short-term rentals and cruises. This law, known as California Senate Bill 478, was created to reveal hidden “junk fees” and promotes transparency about non-optional charges such as resort, destination, and parking or facility charges.
The new laws present a challenge for hotel operators who sell directly and through third parties like Google and online travel agencies. A.J. Rossitto, the advocacy director of the California Hotel and Lodging Association, stated that hotels are experiencing varying levels of comfort with the looming implementation deadline.
Maulik Pandya, whose management company operates hotels in California, shared that his properties are now compliant after a week-and-a-half of work. However, updating rates on smaller online travel agencies has been a significant hurdle for some owners.
Despite last-minute hiccups, most hotel owners do not anticipate a problem on July 1, according to Laura Lee Blake, president and CEO of the Asian American Hotel Owners Association. However, smaller operators may face more challenges due to constrained budgets and lack of awareness about the new law.
California’s move could lead to a nationwide shift toward pricing transparency, with Minnesota already passing similar legislation. The American Hotels & Lodging Association is advocating for federal standardization to avoid a patchwork of state regulations.
The U.S. House of Representatives recently passed a bill for a national version of California’s law. However, a counterpart piece of legislation in the Senate has stalled. The Hotel Fees Transparency Act (2498) would require anyone advertising a hotel room or a short-term rental to clearly show the final price a customer would pay to book lodging.
Major hotel chains, including Choice Hotels, Hilton, InterContinental Hotels, Marriott, MGM Resorts, Sonesta, and Wyndham have adjusted their pricing systems to comply with the new law. They all expressed commitment to providing clear and transparent pricing and have made necessary adjustments to ensure compliance with the new law.
Source: skift.com