Good news for those who hate misleading prices when planning their trips. New York will soon require all hotel properties and booking websites to clearly display their full prices, including those despicable “hidden fees” or “junk fees.”
In one of the first measures of Mayor Zohran Mamdani’s administration, the city’s Department of Consumer and Worker Protection (DCWP) ruled that starting February, the price you see published when looking for a hotel there will be the price you‘ll actually pay because it will include all the mandatory and alternative fees.
What Are Hidden Hotel Fees?
When we talk about hidden fees, we refer to those additional rates that often only appear at the end of your hotel reservation. Customers are frequently informed that these fees will be charged at the property and not at the time of the initial payment.
These additional costs have names such as “destination fee,” “resort fee,” “hospitality fee,” “amenity fee,” “facility fee,” or something just as ambiguous.
A few of these, like the destination fee, could be justified if they contribute to the maintenance or preservation of a tourist region. However, most of these hidden fees are seen by the public as a misleading way for hotels to sell their rooms at “discount prices” and then recover their operating costs in the final sale.
Total Transparency for the Consumer
The ruling of the mayor’s office and the DCWP will ban hidden hotel rates beginning February 21, 2026. In short, the city’s accommodation properties won’t be able to advertise a low initial price and add more fees later. The base or deal price must include all additional charges from the beginning.
Also, if a credit card deposit or hold is required, hotels must explain this visibly before completing the reservation.
Keep in mind, this initiative only seeks to make hidden rates more visible, not to eliminate them completely.
Repercussions of the new regulation
The new regulation promises to revolutionize in a positive way throughout the global travel industry.
To begin with, the measure is based on a regulation established in 2025 by the United States Federal Trade Commission (FTC). New York is one of the first cities to adapt it to the local level.
With its reputation as one of the main tourist destinations on the planet, the decision of its mayor’s office to prevail against hidden tariffs will create a legal precedent that will motivate other cities to follow in its footsteps.
The change promises to be immediate since it also applies to accommodation ads outside New York. The ban seeks to protect consumers in New York, so if a hotel is outside the city but advertises prices aimed at New York residents, it must also comply with these rules.
In that case, it would be more practical for online tourism agencies (OTAs) such as Expedia or Trivago to implement the clarification of hidden rates in all their listings, not only those aimed at New Yorkers and Manhattan tourists.
Tips to Avoid Hidden Hotel Fees
Hotel chains, short-term rental properties and other accommodation providers will still be able to apply junk rates on their official sites and OTAs, only they will not be able to hide them in the small print or shopping cart.
While this measure spreads, you can protect yourself from junk hotel rates by carefully reading the terms and conditions of your reservation, as well as analyzing each expense in the breakdown. (Or ask for help from travel advisors like us and you will get the right price for any type of stay.)
The regulation in New York represents a good first step against hidden hotel rates. Its success and spread will bring more clarity, less “scares” and a better hotel experience for all.
Image: © Freepik.
