NYC Bans Hidden Hotel Fees: What This Means for Hotels, Booking Platforms, and Travelers

New York City is making a clear move toward greater pricing transparency in the hospitality industry. The New York City Department of Consumer and Worker Protection has amended Title 6 of the Rules of the City of New York to prohibit hotels and booking platforms from charging hidden or misleading junk fees in connection with hotel stays.

This new rule changes how hotels, travel companies, and third party booking platforms present pricing to consumers. It also significantly increases the legal and financial risks for businesses that fail to comply.

What Are “Junk Fees” in Hotel Pricing?

“Junk fees,” often called resort fees, destination fees, or hospitality service fees, are mandatory charges that are frequently left out of the advertised room rate. This practice, known as drip pricing, prevents consumers from seeing the true total cost of their stay until the later stages of the booking process.

Consumer advocacy groups, the Federal Trade Commission, and local regulators have found that these pricing tactics can mislead consumers, especially travelers who are booking under time or budget pressure.

How the New NYC Rule Changes Hotel Advertising

Under the new regulation issued by the New York City Department of Consumer and Worker Protection, any business that advertises a hotel stay in New York City or to New York City consumers must comply with strict pricing disclosure requirements.

Hotels and booking platforms are now required to:

Clearly and conspicuously disclose the total price of a hotel stay, including all mandatory fees

• Display the total price more prominently than any other pricing information

• Avoid misleading consumers about the nature, purpose, amount, or refundability of any fee

• Provide full disclosures before a consumer agrees to pay, from reservation through checkout

  
  

Required Disclosures Before Payment

Before a guest completes a booking, advertisers must clearly disclose:

• Any additional fees that are excluded from the advertised total price

• The final amount the consumer must pay

• The hotel’s general policy for deposits or credit or debit card holds, including:

• The standard amount of any deposit or hold

• The reasons the hotel may retain part or all of a deposit

• The approximate timeframe for release or refund

These requirements apply equally to hotels and third party booking platforms, helping ensure transparency no matter where the reservation is made.

Why New York City Adopted Its Own Rule

Although the FTC issued a nationwide rule addressing junk fees in 2025, DCWP reports that New York City consumers continue to face hidden hotel charges, prompting the City to adopt a local regulation with enhanced enforcement authority. The NYC rule complements federal and state laws while allowing local agencies to directly address deceptive pricing practices affecting travelers in the City.

Enforcement and Penalties

Failure to comply with NYC’s hotel fee disclosure rule can result in significant fines:

• First violation: $525

• Second violation: $1,050

• Third and subsequent violations: $3,500

Penalties apply per violation, making pricing transparency a critical compliance issue for hospitality businesses.

One-Year Extension for Deposit and Hold Disclosures

In response to industry feedback, DCWP delayed enforcement of the deposit and hold disclosure requirement for one year following publication in the City Record. This grace period allows hotels and booking platforms time to update policies, systems, and consumer-facing disclosures.

What Hotels and Booking Platforms Should Do Now

Businesses operating in or marketing to New York City should take proactive steps to ensure compliance, including:

• Reviewing pricing and advertising materials

• Auditing online booking flows and confirmation pages

• Ensuring mandatory fees are included in advertised prices

• Clearly publishing deposit and hold policies

Early compliance can help avoid enforcement actions, fines, and reputational damage — while building consumer trust through transparent pricing.

Key Takeaway

New York City’s ban on hidden hotel junk fees signals a broader shift toward honest, upfront pricing in the hospitality industry. Hotels and booking platforms that adapt now will be better positioned to reduce legal risk and remain competitive in a market increasingly focused on consumer protection.

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