Hotels Hurry to Adhere to California’s Junk Fee Legislation

Starting from July 1, hotels in the U.S. will need to adhere to a new California law, which mandates full disclosure of total costs, inclusive of all obligatory fees for hotel rooms, and other services like short-term rentals and cruises. This move, brought about by California Senate Bill 478, is to expose the hidden “junk fees” and increase transparency regarding non-optional charges such as resort, destination, and parking or facility charges. A similar law, AB 537, has also been enacted for consumers to make easy and accurate cost comparisons upfront. These new laws, however, present a compliance challenge for hotel operators conducting business both directly and via third parties like Google and online travel agencies.

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