Get All Access for $5/mo

'Resort Fees' and Other 'Junk Fees' May Soon Be a Thing of the Past—Here's Why The U.S. government wants to ban hidden travel charges.

By Madeline Garfinkle

Key Takeaways

  • Resort fees, along with additional charges imposed by airlines and event ticket sellers, are often not included in the initial price during online bookings.
  • The Junk Fee Prevention Act and Hotel Fees Transparency Act is proposed to ensure businesses display the full price upfront, including all fees, and whether or not they are refundable.

Opinions expressed by Entrepreneur contributors are their own.

Nothing in life is free, and hidden charges in the form of "resort fees" and other added costs are irking many travelers.

Now, new legislation aims to ban the use of "junk fees," citing their impact on consumers' expenses.

These fees include mandatory charges applied by places like hotels (to cover amenities such as gym access and internet), event companies (service fees on concert tickets, for example), and airlines (bag fees, etc.).

Resort fees (and additional fees imposed by airlines and event tickets) are typically not included in the initial price when booking online, making it challenging for consumers to compare prices effectively. A 2017 report from the Federal Trade Commission found that since resort fees are presented separately from room prices, it can make the consumer search for the best price more complicated and "difficult to comparison shop."

Only six percent of hotels charge resort fees, according to the American Hotel & Lodging Association, per The New York Times. Still, those fees can add up — a separate 2018 report from Bjorn Hanson found that resort fees generate $3 billion annually for hotels.

Related: 'The New Norm': Viral Document Exposes Hidden Charges on Restaurant Bills, From Service Fees to 'Health and Happiness' Fees

The Biden Administration's Junk Fee Prevention Act and Hotel Fees Transparency Act would require businesses to display the full price upfront, including fees, to prevent the uptick in surprise charges, and face monetary penalties if failing to comply. It would also require businesses to be upfront about whether the fees in question are refundable.

The proposed rule has been approved by the FTC for Federal Register publication and, once posted, consumers can issue comments for 60 days. But not everyone is on board.

Neil Bradley, executive vice president of the U.S. Chamber of Commerce, said in a statement on Wednesday that he believes the legislation would actually hurt consumers.

"Every minute of every day, Americans engage in close to 400,000 transactions, buying and selling goods and services," Bradley said. "It is baffling that the administration believes it is going to help consumers by regulating how businesses price all of those transactions."

Related: How to Avoid Sneaky, Hidden Travel Fees

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.

Business News

Here's What the CPI Report Means for Your Wallet, According to JPMorgan and EY Experts

Most experts agree that there will be another rate cut next week.