No Hidden Fees on Extra Expenses for Stays Act of 2023
Floor Speech
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Ms. CASTOR of Florida. Mr. Speaker, I thank Ranking Member Pallone for yielding the time.
Mr. Speaker, I rise in strong support of the No Hidden FEES Act, H.R. 6543, and I thank my partner, the gentlewoman of California (Mrs. Kim), for leading the effort here.
Mr. Speaker, the No Hidden FEES Act would outlaw junk fees in hotel lodging. It would outlaw that unfair and misleading price advertising, whether it is motels or short-term rentals, or privately owned vacation rentals. It will require an accurate price listing that has to include all fees.
Mr. Speaker, I think all too often a family goes online when they are planning their vacation to the Gulf beaches of The Sunshine State for a lovely vacation, or anywhere across the country, too often, as they search online and try to do comparison shopping, not all of the fees are displayed. Mr. Speaker, Mr. Bilirakis would probably agree.
That is not fair because oftentimes, at the end their vacation, consumers will go to check out of their hotel or wherever they are staying, and they will tack on these extra fees. It is not fair. It is not right.
That is why we want to tackle this industrywide to make sure that there is a level playing field for all families ready to take their vacation and use their hard-earned dollars to do it.
These hidden fees also stifle competition because one thing consumers want when they are comparison shopping is that level playing field. They want all the information at their fingertips. This would provide those ground rules across everywhere. In many cases, the platforms are hiding these fees. That is why this legislation is so important.
Mr. Speaker, I include in the Record the support letters from the American Hotel and Lodging Association, the Florida Restaurant and Lodging Association, and a statement from Airbnb. American Hotel & Lodging Association, December 4, 2023. Hon. Cathy McMorris Rodgers, Chair, Committee on Energy and Commerce, House of Representatives, Washington, DC. Hon. Frank Pallone Jr., Ranking Member, Committee on Energy and Commerce, House of Representatives, Washington, DC.
Dear Chair McMorris Rodgers and Ranking Member Pallone: On behalf of the American Hotel and Lodging Association (AHLA), and the undersigned organizations, we are writing to express our support for the passage of Congresswoman Young Kim's (CA- 40) and Congresswoman Kathy Castor's (FL-14) legislation, the No Hidden Fees on Extra Expenses for Stays Act (H.R. 6543).
AHLA is the singular voice representing every segment of the hotel industry including major chains, independent hotels, management companies, REITs, bed and breakfasts, industry partners, and more. The industry is made up of more than 62,000 hotels, 33,000 of which are small businesses, comprising 5.6 million rooms across the United States. These hotels generate more than $300 billion in sales every year and support more than 8.3 million jobs. Hotels are integral contributors to communities across the country and annually generate nearly $75 billion in tax revenue at the federal, state, and local levels.
We, along with the undersigned organizations, are extremely grateful to Representatives Kim and Castor for recognizing the need for consistent and broadly applicable mandatory fee disclosure and display requirements across the entire lodging booking and advertising ecosystem. This bill would create a national standard for display of lodging prices and require that any mandatory fees be included in prices wherever they are advertised, distributed, and sold. As written, this bill would also ensure compliance throughout the complex lodging distribution ecosystem.
While hotels disclose mandatory additional fees to consumers in accordance with existing FTC guidance now, it is critical that any updated display requirements apply across the competitive lodging advertising and booking landscape. Recently, many of the largest hotel chains that AHLA represents have implemented, or announced plans to imminently implement, changes to ensure that mandatory fees are displayed upfront in the pricing consumers are offered through their owned channels.
Critically, as consumers shop for and book lodging through a wide variety of channels and providers, this proposed legislation would apply to third-party distributors, such as online travel agencies (e.g., Expedia), metasearch sites and search engines (e.g., Google), as well as short-term rental platforms (e.g., Airbnb). Any regulation mandating fee display and disclosure must be consistently applied to all accommodation providers, advertisers, and broader industry participants to ensure consumers see the same information, in a consistent manner, anywhere they shop. A level competitive playing field for industry participants paired with clear and consistent display for consumers is of paramount importance and we believe this legislation achieves those goals.
We thank Representatives Kim and Castor for introducing this legislation and working together in a bipartisan fashion to craft a strong bill that will ensure compliance across the industry. We ask that the committee report it favorably and as written.
We look forward to working with you and your colleagues to support America's hotel and lodging industry, employees, guests, and local communities. Sincerely,
American Hotel and Lodging Association, California Hotel and Lodging Association, Florida Restaurant and Lodging Association, The Broadmoor, BWH Hotels, Choice Hotels International, Hilton, Host Hotels & Resorts, Hyatt, IHG Hotels & Resorts, Loews Hotels & Co., Marriott International, MGM Resorts, Omni Hotels & Resorts, Park Hotels & Resorts, Pebblebrook Hotel Trust, Sea Island Resort, Wyndham Hotels & Resorts, Inc. ____ Florida Restaurant & Lodging Association, Tallahassee, FL, December 4, 2023. Hon. Kathy Castor, House of Representatives, Washington, DC.
Dear Representative Castor: On behalf of the Florida Restaurant and Lodging Association (FRLA), I am writing to express our support for your legislation, the No Hidden Fees on Extra Expenses for Stays Act (H.R. 6543), and our gratitude for your leadership on this issue.
The Florida Restaurant and Lodging Association (FRLA) is Florida's premier non-profit hospitality industry trade association. Founded in 1946 as the Florida Restaurant Association, FRLA merged with the Florida Hotel and Motel Association in 2006. FRLA's more than 10,000 members include independent hoteliers and restaurateurs, household name franchises, theme parks and suppliers. The association's mission is to protect, educate and promote Florida's nearly $112 billion hospitality industry, which represents 1.3 million employees. Dedicated to safeguarding the needs of the membership, FRLA provides legislative advocacy to ensure the voices of its members are heard and their interests are protected.
FRLA is extremely grateful for your work in recognizing the need for consistent and broadly applicable mandatory fee disclosure and display requirements across the entire lodging booking and advertising ecosystem. This bill would create a national standard for the display of lodging prices, and it would require that any mandatory fees be included in prices wherever lodging is advertised, distributed, and sold. As written, this bill would also ensure compliance throughout the complex and fragmented lodging distribution ecosystem.
While hotels currently disclose mandatory additional fees to consumers in accordance with existing FTC guidance, it is critical that any updated display requirements apply across the competitive lodging advertising and booking landscape. Recently, many of the largest hotel chains that include FRLA members--including Marriott International, Hilton, Choice Hotels International, Omni Hotels & Resorts, and Hyatt--have implemented, or announced plans to soon implement, changes to ensure that mandatory fees are clearly displayed at the outset in the pricing consumers are offered through their owned channels.
Critically, as consumers shop for and book lodging through a wide variety of channels and providers, this proposed legislation would apply to third-party distributors, such as online travel agencies (e.g., Expedia), metasearch sites and search engines (e.g., Google), as well as short-term rental platforms (e.g., Airbnb). Any regulation mandating fee display and disclosure must be consistently applied to all accommodation providers, advertisers, and broader industry participants to ensure consumers see the same information, in a consistent manner, everywhere they shop. A level competitive playing field for industry participants paired with clear and consistent display for consumers is critical, and we believe this drafted legislation achieves those goals.
We thank you for introducing this legislation and working together with Representative Kim in a bipartisan fashion to craft a strong bill that will ensure compliance across the industry.
We look forward to working with you and your colleagues to support Florida's hotel and lodging industry, employees, guests, and local communities. Sincerely, Carol B. Dover, FMP, President & CEO, Florida Restaurant and Lodging Association. ____ Support for Federal Price Transparency Legislation
Airbnb today announced support for the No Hidden Fees on Extra Expenses for Stays (No Hidden FEES) Act of 2023 (H.R 6543) introduced by U.S. Representatives Young Kim (CA-40) and Kathy Castor (FL-14). The bill would create a national standard for price transparency across the accommodation industry, including short-term rentals and hotels.
``Last year, Airbnb launched total price display to make it easier for guests to find stays that fit their budget, and help our Hosts set competitive prices. We believe giving guests the ability to see a fee-inclusive price when they search makes for a better experience, and that's why we are proud to support the No Hidden Fees Act to create a national industry-wide standard for price transparency at a time when affordability is top of mind for consumers. We applaud Representatives Kim and Castor for their work on this legislation and we look forward to helping raise support for its passage,'' said Theo Yedinsky, Airbnb's Global Policy Director.
Last December, Airbnb launched the option to display total pricing in the US and other countries without existing price display requirements. US guests can now view total pricing with fees, before taxes, across the entire app. Since we launched the tool, over 8 million guests have booked travel on Airbnb using total price display.
In June, Airbnb's Chief Financial Officer Dave Stephenson joined President Joe Biden for a meeting at the White House to highlight private sector companies that have launched price display improvements for consumers.
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Ms. CASTOR of Florida. Mr. Speaker, let me read what they say.
American Hotel and Lodging Association says: ``While hotels disclose mandatory additional fees to consumers in accordance with existing FTC guidance now, it is critical that any updated display requirements apply across the competitive lodging advertising and booking landscape. Recently, many of the largest hotel chains . . . have implemented, or announced plans to imminently implement, changes to ensure that mandatory fees are displayed upfront in the pricing consumers are offered through their owned channels.
``Critically, as consumers shop for and book lodging through a wide variety of channels and providers, this proposed legislation would apply to third-party distributors, such as online travel agencies . . . metasearch sites and search engines . . . as well as short-term rental platforms. . . . Any regulation mandating fee display and disclosure must be consistently applied to all accommodation providers, advertisers, and broader industry participants to ensure consumers see the same information, in a consistent manner, anywhere they shop.''
Airbnb weighs in and says that they agree: ``We believe giving guests the ability to see a fee-inclusive price when they search makes for a better experience, and that's why we are proud to support the No Hidden FEES Act to create a national industrywide standard for price transparency at a time when affordability is top of mind for consumers.''
I also thank my Energy and Commerce colleagues for passing this bipartisan bill out of the committee in a unanimous fashion and urge the House to also pass this unanimously. Let's get this relief to consumers so that, when they shop for their vacation, they understand exactly what they are getting.
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