Hotels rush to comply with California’s junk fee laws

California’s action is forcing all U.S. hotels to be transparent about their pricing, setting a new benchmark for price comparisons that may soon be adopted nationwide

Jun 24, 2024

Beginning July 1, U.S. hotels must comply with a California law requiring upfront disclosure of the total cost, including all mandatory fees, for hotel rooms and other travel services, such as short-term rentals and cruises.

Key takeaways

• California Senate Bill 478 aims to expose hidden « junk fees » and promote transparency for non-optional charges such as resort, destination, and parking or facility fees;
• This law presents a compliance challenge for hotel operators, whether they sell directly or through third parties such as Google and online travel agencies;
• California’s initiative could spark a nationwide shift toward price transparency. The American Hotels & Lodging Association, concerned about varying state regulations, is lobbying for federal standardization.

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