Senate committee approves hotel fee transparency bill

The bill's committee approval is a key step toward improving transparency and helping consumers make informed decisions while avoiding unexpected costs

The Senate Committee on Commerce, Science, and Transportation has approved the Hotel Fees Transparency Act (HFTA) of 2025, aimed at promoting fair pricing in the hospitality industry by requiring hotels and short-term rentals to disclose all booking costs upfront. The bill, co-sponsored by Senators Amy Klobuchar and Jerry Moran, is designed to address consumer frustration over hidden fees that are often added after a reservation is made. With support from major industry groups, the bill is now set to move to the full Senate for consideration.

Key takeaways

• The Hotel Fees Transparency Act mandates that all hotel and short-term rental fees, including hidden charges, must be disclosed upfront during the booking process.
• Senators Amy Klobuchar (D-Minnesota) and Jerry Moran (R-Kansas) championed the bill, with support from the American Hotel & Lodging Association (AHLA) and the Asian American Hotel Owners Association (AAHOA).
• The bill aims to create a level playing field by increasing price transparency, which would allow consumers to make better-informed decisions and avoid surprise charges at check-in.
• Many states, including California, have already implemented similar laws, but a national law is needed for consistency across the country.
• The Federal Trade Commission also finalized a rule in December 2024 requiring industries, including hotels, to disclose all fees upfront, marking a significant step toward ending hidden resort fees in advertised prices.

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