Senate Committee Approves Hotel Fees Transparancy Act

In a July 31 bipartisan vote, the Senate Committee on Commerce, Science, & Transportation approved the Hotel Fees Transparency Act (S. 2498), which was introduced by Senators Amy Klobuchar, D-Minn. and Jerry Moran, R-Kan.

Dubbed the junk fee legislation, the measure now working its way through the approvals process would create a unified standard for hotels when it comes to displaying mandatory fees.

A similar measure, titled the No Hidden Fees Act, was approved in June by the U.S. House of Representatives. Both the No Hidden Fees Act and the Hotel Fees Transparency would establish a single standard for revealing mandatory fees across the entire lodging ecosystem.

The version of the bill voted on today, which is supported by hospitality industry organizations such as AHLA, must now be approved by the full Senate.

AHLA’s Interim President and CEO Kevin Carey issued a statement today not long after the Senate committee vote, reinforcing the organization’s support for the bill.

“Today’s committee vote in the Senate is an important step toward a more transparent booking process for guests and a level playing field across the lodging industry – including short-term rentals, online travel agencies, metasearch sites, and hotels,” Carey said. “We thank Sens. Klobuchar and Moran for their leadership on this issue, and we urge the Senate to quickly bring this bill to the floor for a vote.”

Carey added that AHLA looks forward to working with both chambers to advance the bill to the president’s desk.

AHLA has long supported the creation of a single standard for mandatory fee display across the lodging industry – from short-term rental platforms, to online travel agencies, metasearch sites, and hotels.

The most recent data from AHLA shows only 6 percent of hotels nationwide charge a mandatory resort/destination/amenity fee, at an average of $26 per night.

The Biden Administration’s effort to provide similar transparency for fees in the airline industry meanwhile, was blocked this week by an Appeals Court.