Starting this month, the Federal Trade Commission (FTC) is driving a fundamental shift in how hotel prices appear online through a sweeping new regulation.
NB: This is an article from Koddi
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The FTC’s new “All-In Pricing” rule, which goes into effect May 2025, is designed to eliminate the widespread use of drip pricing—the practice of advertising low base rates only to tack on mandatory fees at checkout. This regulatory shift directly targets a common frustration in travel booking, where hidden costs have long misled customers and skewed competition.
What the FTC rule requires
Under the new rule, any advertised price must include all mandatory charges the consumer is required to pay, excluding government taxes. For hotels, this means incorporating resort fees, service fees, and any non-optional surcharges into the initial price display with no exceptions.
This isn’t just a shift in presentation; it’s a matter of legal compliance.
Why this matters for metasearch
Metasearch platforms like Google, Tripadvisor, Trivago, Kayak, and Bing are built on transparency and competition. Travelers compare options based on price, and suppliers compete in highly sensitive auction environments where even a few dollars can impact click-through and conversion rates.
Historically, some listings appeared lower in price simply because they excluded mandatory fees, causing these listings to gain an artificial advantage. With this new regulation, that’s no longer possible. The result: a more level playing field where all suppliers and distribution channels are held to the same standard, and consumers can make better-informed choices.
Practical tips to consider for the new FTC and platform pricing rules
To comply with the FTC’s all-in pricing regulation – as well as platform-specific policies from Google, Tripadvisor, and Trivago – all mandatory taxes and fees must be included in the price a user sees up front.
This requirement applies to all lodging types, including hotels, vacation rentals, and resorts. The total price must reflect everything a guest is required to pay to complete their stay, regardless of when the fee is collected (at booking or check-in).
Here’s what that means in practice:
- Include all mandatory charges, such as:
- Occupancy taxes
- City, county, or state taxes
- Value-added or tourism taxes
- Resort fees
- Registration or cleaning fees
- Transfer fees (e.g., a mandatory boat ride to a hotel)
- Service fees required for the stay
- Exclude optional add-ons by default (e.g., parking, spa access, room upgrades)
- Fees must reflect what most users will encounter—if it’s generally unavoidable, it must be included in the total price shown in search results
