AAHOA Welcomes FTC Ruling Requiring Transparency in Lodging Pricing
ATLANTA, GA – AAHOA (Asian American Hotel Owners Association), the world's largest hotel owners association, applauds the Federal Trade Commission (FTC) for finalizing the Rule on Unfair or Deceptive Fees, also known as the "Junk Fees Rule," on Tuesday, December 17. This landmark rule requires upfront disclosure of total prices, including mandatory fees, to ensure transparency and fairness for consumers booking short-term lodging and live-ticket events.
The Junk Fees Rule mandates that pricing for short-term lodging, such as hotels and vacation rentals, be presented clearly and prominently inclusive of all mandatory fees. This change protects consumers from surprise charges like "resort," "service," or "convenience" fees at checkout, promoting a more honest marketplace and leveling the playing eld for businesses.
Transparency is at the heart of building trust between hoteliers and their guests,
AAHOA Chairman Miraj S. Patel said. By requiring upfront disclosure of total pricing, this rule empowers consumers to make informed decisions and ensures a fair, competitive environment for hoteliers who have always practiced honest pricing. AAHOA commends the FTC for taking this important step.
The FTC estimates that this rule will save American consumers up to 53 million hours annually spent searching for total pricing, translating to more than $11 billion in savings over the next decade. The rule will become effective 120 days after its publication in the Federal Register, anticipated in April 2025.
This is a win for both consumers and businesses,
AAHOA President & CEO Laura Lee Blake said. Uniform and transparent pricing practices ensure clarity and fairness, allowing guests to budget condently while protecting the integrity of our industry. AAHOA is proud to support measures that foster trust and improve the guest experience.
The Junk Fees Rule aligns closely with AAHOA's ongoing advocacy for fairness and transparency in the lodging industry. Earlier this year, AAHOA supported the No Hidden Fees on Extra Expenses for Stays (FEES) Act, legislation with similar goals of upfront disclosure for all mandatory lodging fees.
About AAHOA
AAHOA is the largest hotel owners association in the world, with Member-owned properties representing a significant part of the U.S. economy. AAHOA's 20,000 members own 60% of the hotels in the United States and are responsible for 1.7% of the nation's GDP. More than 1 million employees work at AAHOA Member-owned hotels, earning $47 billion annually, and member-owned hotels support 4.2 million U.S. jobs across all sectors of the hospitality industry. AAHOA's mission is to advance and protect the business interests of hotel owners through advocacy, industry leadership, professional development, member benefits, and community engagement.