'Resort fees' in the U.S. must now be disclosed. But some aren't celebrating yet

CNBC

12-05-2025

A new U.S. rule that requires hotel and short-term lodging companies to disclose so-called "junk fees" starts Monday.
Announced by the Federal Trade Commission in December, the rule takes direct aim at the widely loathed charges, which can appear as "resort," "destination" or "hospitality service" fees and purport to grant perks that travelers either don't want or already expect to receive.
These include "premium" internet service and access to a hotel gym.
The rule, which also applies to live event ticketing companies, was designed to curtail a practice that allowed businesses to charge more "without looking like you're raising prices," Cathy Mansfield from the Case Western Reserve Law School told CNBC in December.
The professor, who specializes in consumer and commercial law, had one caveat: "I really hope the Trump administration doesn't cut the enforcement staff at the FTC and the CFPB."
But since the rule was announced, the Trump administration has pushed to eliminate nearly 90% of the Consumer Financial Protection Bureau's staff and fired two FTC commissioners — actions which are being challenged in the U.S. court system.
As a result, Mansfield said she now believes the new rule is less likely to protect consumers.
"With the Consumer Financial Protection Bureau already incapacitated by the Trump administration, there probably won't be new protections for consumers — a rollback of existing protections where possible, and absolutely no enforcement of rules. This means no protection at all for consumers," she said.
In response, Chris Mufarrige, the director of the FTC's Bureau of Consumer Protection, told CNBC that the agency "is working hard to protect consumers and will continue to pursue enforcement actions against companies that violate the law, including through the new deceptive fee rule."
The Trump Administration also targeted fees in the live entertainment industry through an executive order on March 31 that directed the FTC to ensure price transparency "at all stages of the ticket-purchase process."
The CFPB did not reply to CNBC's request for comment.
Laurent Bacinski, a French citizen, was hit by undisclosed junk fees during a trip to New York City.
He pre-paid for his trip through a travel app but was still charged a $500 deposit by his hotel at check-in, from which the hotel deducted taxes and a nightly "destination fee." These fees provided high-speed internet, discounts on sightseeing tours and a credit at the hotel mini-mart.
"The destination fee is forced sale of services I don't need," he told CNBC Travel.
Disclosure of these fees is the crux of the FTC's rule, which does not aim to eliminate them, but rather to ensure travelers know they exist.
"The Junk Fees rule is rooted in a simple but powerful principle: transparency," said Mansfield. "When consumers can see the full price up front — whether they're booking a hotel, buying concert tickets or paying a service fee — they're in a better position to make informed decisions and avoid being misled."
This transparency has already begun, said Lauren Wolfe, counsel for Travelers United, a non-profit organization that has sued Hyatt, Hilton, Sonesta and Accor over the issue of resort fees.
"We have seen a lot more voluntary compliance since the rule was announced in December," she said.
Airbnb announced in April that it began displaying cleaning and service fees upfront for customers worldwide.
Wolfe referenced another bill, the Hotel Fees Transparency Act of 2025, which cleared the U.S. House of Representatives in April, and is now set to go before the Senate.
"The combo of the FTC rule, plus a bill that has bipartisan support — and looks like it will pass — in Congress shows that ending hidden hotel resort fees is one issue today that unites all Americans," she said.
CNBC Travel analyzed 10 booking websites for a two-night stay at Balboa Bay Resort, a hotel in Newport Beach, California that charges a $40 daily resort fee, as stated on the hotel's website.
Of the 10 sites, seven disclosed the fee in various ways — either as a "destination fee," "property fee" or "property service charge" — and three did not.
If travelers encounter a hotel or short-term rental charging undisclosed fees, Mansfield recommends filing a complaint with the FTC. Penalties for violating the new rule can exceed $50,000.
"The FTC has a really easy-to-use online complaint system, and they tally complaints that help them see what's happening the market," she said.
She also suggested using the CFPB's online complaint system, she said. "They actually forward the complaint to the company ... that will sometimes get things resolved because companies don't want to be in the crosshairs of the CFPB," she said.
Mansfield said travelers can also contact the consumer fraud division of their state Attorney General's office. "I would say complain to both federal and state" authorities, she said.
If all else fails, travelers can also consider airing their complaint on social media.
"Sometimes with companies, the squeaky wheel gets the grease."