31 July 2024
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NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities. We do not represent consumers making claims against such businesses. When it comes to Junk Fee laws at the State or National level, we help the owners and operators of the hotels, restaurants and hospitality facilities to understand and comply with Junk Fee Laws. When claims are made against them by consumers of competitors, we advise on strategies and defense of such claims.
In a significant legislative move, the U.S. Senate is advancing towards establishing a new national standard for price transparency in the hospitality industry. The bill, known as The Hotel Fees Transparency Act, mandates that hotels, short-term rentals, and online travel platforms display the total price, including all mandatory fees, upfront. This initiative mirrors a similar bill passed by the House of Representatives earlier this year and stands a good chance of becoming law before the November elections.
In a new article, Sean O’Neill, senior hospitality editor at Skift, gives us the scoop on this bill’s journey, the industry’s reactions, and the potential impacts. The goal here is clear: to make booking more transparent for consumers and ensure a level playing field across the lodging industry. Jim Butler, founder and chairman of JMBM’s Global Hospitality Group®, is quoted several times, highlighting the bill’s significance and the broad support it has received. Jim notes, “We are down to the final strokes of what could be significant federal legislation,” and points out the lack of organized opposition.
The bipartisan legislation, introduced by Senators Amy Klobuchar (D-Minn.) and Jerry Moran (R-Kan.), has passed the Senate Committee on Commerce, Science, & Transportation and now awaits a full Senate vote. The bill’s language has been adjusted to align more closely with the House’s No Hidden FEES Act, particularly regarding protections for online travel intermediaries in disputes about accuracy.
The American Hotels & Lodging Association (AHLA) has expressed strong support for the bill, marking a shift from their previous stance against legislation targeting so-called junk fees. Kevin Carey, AHLA interim president and CEO, stated, “It’s a step toward a more transparent booking process for guests and a level playing field across the lodging industry.” The Travel Technology Association also backs the bill, appreciating the added protections for online travel agencies.
If this law goes into effect, it could have a big impact on the hospitality industry. Smaller independent properties might need to update their pricing systems, while major hotel groups, who have already started adjusting to similar state regulations like those in California, would likely be ready to comply with the new national standard. This law could also affect profit margins for properties that have relied heavily on hidden fees.
For a comprehensive understanding of this crucial development in the hospitality industry, read the full article by Sean O’Neill on Skift.
Read the article here.
This is Jim Butler, author of www.HotelLawBlog.com and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators, and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.
JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or jbutler@jmbm.com to discuss how we can help.