66. Hotel Resort Fees: Will the Junk Fee Ban End Them?

You find a perfect hotel room online for $189 a night. It fits your budget and looks great. However, when you click through to book, the total price suddenly jumps to $240 a night because of a mandatory “resort fee” or “destination charge.” This scenario, known as “drip pricing,” has frustrated travelers for over a decade. Fortunately, new state laws and federal regulations are moving quickly to stop this practice. This article explains what the new bans mean for your wallet and when you can expect real changes.

Understanding the "Junk Fee" Problem

Hotels generate billions of dollars annually through mandatory fees that are excluded from the initial advertised room rate. These charges often appear under various names:

  • Resort Fees: Common in vacation spots like Las Vegas, Orlando, and Hawaii.
  • Destination Fees: Found in urban hotels in New York City or Chicago.
  • Amenity Fees: General charges for WiFi, gym access, or pool usage.

The core issue is not that the fee exists. The issue is that the hotel requires you to pay it, yet they do not include it in the price you see on search results like Expedia, Kayak, or the hotel’s own website. This makes comparison shopping nearly impossible. A hotel listed at $150 might actually be more expensive than one listed at $180 once the $45 daily resort fee is added at the final checkout screen.

California Senate Bill 478: The Game Changer

While the federal government debates legislation, California has already taken action that will likely force a nationwide change. On July 1, 2024, California Senate Bill 478 (SB 478) goes into effect.

This law specifically bans “drip pricing.” It makes it illegal for businesses to advertise a price that is lower than the actual price a consumer must pay.

Why this matters for everyone: California represents a massive portion of the US economy. Major hotel chains like Marriott, Hilton, Hyatt, and IHG generally use a unified booking system for their websites and apps. It is technically difficult and operationally expensive to show “all-in” pricing only to Californians while showing hidden fees to everyone else. Legal experts predict that once SB 478 is enforced, major hotel chains will likely switch to transparent pricing across the United States to ensure compliance.

The Federal Push: FTC Regulations

Beyond state laws, the Federal Trade Commission (FTC) is finalizing a new rule specifically targeting junk fees. Unlike a bill that must pass through a divided Congress, the FTC has the authority to regulate “unfair or deceptive acts.”

In late 2023, the FTC proposed a rule that would require hotels and ticket sellers to display the “total price” clearly. This price must include all mandatory fees. If a hotel charges a $40 resort fee, they would be legally required to include that $40 in the advertised nightly rate from the very first search result.

The Biden Administration’s Stance: President Biden has made eliminating junk fees a central part of his economic platform. He specifically called out hotel resort fees during his State of the Union address. This political pressure encourages the FTC to move faster on finalizing these rules.

Will Fees Disappear or Just Be Visible?

This is the most critical distinction for consumers to understand. The ban on hidden fees does not mean hotels will stop charging you.

Hotels rely on this revenue. The industry argues that these fees cover specific services like high-speed internet, pool towels, and bike rentals. When the legislation takes effect, the following will likely happen:

  1. The Fees Remain: You will still pay the extra $30 or $50.
  2. The Display Changes: Instead of seeing a room for $200 + $50 fee, you will simply see the room listed as $250.
  3. Competition Improves: Because the full price is visible upfront, hotels can no longer trick you with an artificially low base rate. This forces them to compete on the actual price, which could theoretically lower rates slightly over time.

Major Brands and Legal Battles

Several hotel giants have already faced legal pressure regarding these fees before the new laws were written.

  • Marriott: In 2021, Marriott reached a settlement with the Pennsylvania Attorney General. They agreed to list the total price of the room, including resort fees, on the first page of their booking website. They began rolling this out recently, but only for certain search views.
  • MGM and Caesars: These two giants dominate the Las Vegas Strip, where resort fees are arguably the most aggressive. Fees at properties like the Bellagio or Caesars Palace often exceed $50 per night. These companies will be heavily impacted by the new transparency rules, as their low advertised weekday rates (sometimes as low as $39) will suddenly look much higher on search engines.
  • Hilton: The Attorney General of Texas sued Hilton in 2023 for violation of consumer protection laws regarding hidden fees. This creates further pressure for the brand to adopt transparent pricing nationwide.

How to Avoid Resort Fees Right Now

Until the regulations are fully enforced in late 2024, you are still liable for these fees. However, there are proven ways to avoid them:

  • Book Award Stays: Two major chains, Hilton Honors and World of Hyatt, waive resort fees on rooms booked entirely with points. If you book a standard reward night, you pay $0 in fees. Marriott Bonvoy and IHG One Rewards typically do not waive resort fees on reward stays.
  • Earn Elite Status: Some loyalty programs waive these fees for their top-tier members. For example, Hyatt Globalist members do not pay resort fees on eligible rates.
  • Ask the Front Desk: While rarely successful at big chains, independent hotels may waive the fee if you decline the amenities. You can politely state, “I will not be using the pool, the gym, or the WiFi. Can you please remove the amenity fee?”
  • Look for “No Resort Fee” Filters: Booking sites like Booking.com occasionally allow you to filter results. Alternatively, search for specific lists of “hotels without resort fees in [City Name]” before you book.

Frequently Asked Questions

When does the ban on hidden hotel fees start? The California law (SB 478) takes effect on July 1, 2024. This will likely trigger changes nationwide around that time. The federal FTC rule does not have a confirmed start date yet but is expected to be finalized in 2024.

Do I have to pay resort fees if I don’t use the amenities? Generally, yes. Hotels classify these as “mandatory fees.” Unless you are a top-tier elite member or booking with specific reward points, the hotel insists payment is required regardless of usage.

Are resort fees legal? Currently, yes. They are legal as long as they are disclosed somewhere during the booking process before you pay. The new laws make them illegal only if they are not included in the initial advertised price.

Do taxes apply to resort fees? Yes. You pay hotel occupancy tax on the room rate and the resort fee. In cities like New York or San Francisco, this can add an additional 14% to 16% on top of the fee itself.

Does the new law apply to Airbnb and VRBO? Yes. The California law and the proposed FTC rule apply to all short-term lodging. This means vacation rental platforms will also have to display the cleaning fees and service fees in the initial search price, rather than adding them at the end.