Junk fees from hotels and airlines have become a hot topic, but thankfully, they’re getting easier to spot.
During the 2023 State of the Union address, President Biden pledged to eliminate surprise resort fees that hotels tack on at checkout. California has already passed laws to bring more transparency to pricing, and other states are expected to follow suit. On the federal level, efforts are underway to take these reforms nationwide, promising more straightforward pricing for consumers.
In June 2023, the U.S. House of Representatives passed the No Hidden FEES Act, a significant step toward nationwide transparency. A similar bipartisan bill is now making its way through the Senate, aiming to bring clearer pricing to hotels, short-term rentals, online travel agencies, and search websites.
Under the DOT’s Junk Fees Protection Act the final rule for airlines is that ticket agents are required to:
Disclose critical extra fees upfront: The rule requires airlines and ticket agents to display critical extra service fees upfront clearly, conspicuously, and accurately. Each critical extra fee must be individually disclosed the first time that fare and schedule information is provided on the airline’s online platform — and cannot be displayed through a hyperlink. For consumers shopping for flights offline, airlines and ticket agencies must disclose these fees when they provide a fare quote.
Explain critical extra fee policies prior to purchase: To help consumers figure out whether they want to purchase a critical extra service, the rule requires airlines and ticket agents to explain the airline’s baggage, change, and cancellation policies before ticket purchase. For each type of baggage, airlines and ticket agents must spell out the weight and dimension limitations that they impose. Airlines and ticket agents must also describe any prohibitions or restrictions on changing or cancelling a flight, along with policies related to differences in fare when switching to a more or less expensive flight.
Share critical extra fee prices and policies with relevant companies: There are many ways that consumers shop for flights. They may purchase tickets from airlines or travel agencies. To help ensure that critical extra fees are displayed across a variety of platforms, the final rule requires airlines to provide useable, current, and accurate information regarding their baggage, change, and cancellation fees and policies to any company that is required to disclose them to consumers and receives fare, schedule, and availability information from the airline.
Inform consumers that seats are guaranteed: To help consumers avoid unneeded seat selection fees, airlines and ticket agents must tell consumers that seats are guaranteed and that they are not required to pay extra.
Provide both standard and passenger-specific fee information: Consumers may be entitled to discounted or waived critical extra fees based on their participation in the airline’s rewards program, their military status, or the credit card that they use. Airlines and ticket agents must give consumers the option to receive this passenger-specific fee information or remain anonymous and receive the standard fee information. The passenger-specific fees must be based on information affirmatively provided by the consumer.
End discount bait-and-switch tactics: The final rule puts an end to the bait-and-switch tactics some airlines use to disguise the true cost of discounted flights. Prior to the rule, some airlines were offering deceptive discounts that consumers may have believed applied to the full fare that was being advertised but only applied to a small portion of the ticket price. The new rule prohibits airlines from advertising a promotional discount off a low base fare that does not include all mandatory carrier-imposed fees.
In addition to finalizing the rules to require automatic refunds and protect against surprise fees, DOT is also pursuing rulemakings that would:
Propose to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. At this time, four airlines guarantee fee-free family seating, and the Department is working on its family seating junk fee ban proposal.
Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.
Expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity.
If you need assistance in understanding these or any other charges, please feel free to reach out to one of our planners at The Wealth Conservancy. We’re here to help!