Skift Take
The travel industry is a huge part of Biden's junk fee crackdown, and it is only a matter of time before travel companies get called out specifically in public
President Biden has publicly called out travel companies as part of a crackdown on so-called junk fees, a campaign that takes aim at companies across the sector, looking at their fee structures and how they are displayed.
The White House first raised concerns over these fees in October 2022 and has kept the conversation going, specifically targeting airline and hotel resort fees. It has now taken additional steps: The Federal Trade Commission proposed new rules that would ban businesses – including hotel and lodging companies, short-term rental providers, and car rentals – from charging misleading fees.
In March this year, two democratic senators introduced the Junk Fee Prevention Act, which would require full prices to be shown upfront and targets "surprise" and "exorbitant" fees. In July, Democratic Senator Amy Klobuchar and Jerry Moran, a Republican, introduced a bipartisan bill known as the Hotel Fees Transparency Act, which would address the issue of hidden resort fees for hotel stays. “It requires that the cost of the rooms are there up front. Transparency, full disclosure. So you know exactly what you're getting into,” said Senator Amy Klobuchar.
The push for transparent hotel rates continued in August. The State of Texas has taken legal action against Booking Holdings, claiming that the company breaches state regulations by promoting hotel rates in a misleading fashion, as it fails to incorporate a range of charge