New York City is banning hidden hotel fees to lower costs.
New York City is banning hidden hotel fees to lower costs.The upcoming rule means hotels will include mandatory resort and destination fees. This also applies to service fees included in the advertised room price and to disclosing credit card holds and deposits upfront.
The rule applies to any hotel or booking site that advertises a room price to New York City consumers, even if the hotel is located elsewhere. This gives the city authority to penalize hotels and booking platforms that use drip pricing.
New York City is banning hidden hotel fees.
According to Yahoo News, this is the strongest hotel consumer protection anywhere in the country. New York City Mayor Zohran Mamdami noted that “there was a lot of concern that there would be lobbying efforts or efforts to water this down.” It never happened.
The new rule, adopted by the Department of Consumer and Worker Protection, states that, “When you book a room, the price you see is often not the price you pay.” No more revealing additional mandatory charges that make it harder for consumers to understand the overall cost. Many hotels also issue unexpected credit card holds or deposits with misleading terms. In 2025, DCWP received over 300 consumer complaints about hidden hotel fees or unexpected holds.
Worker Protection bars hotels from charging mandatory resort and destination fees.
It also says service fees not included in the advertised room price will face fines. Also, it requires hotels to disclose credit card holds and deposits upfront. This provision, city officials said, protects travelers whose available credit can be sharply reduced during a stay.
“Under this rule, if you check out and suddenly there’s a fee you didn’t see before, that’s illegal,” said Department of Consumer and Worker Protection Commissioner Samuel A.A. Levine, speaking at a press conference last Wednesday.
The tourism caused by the boom of the World Cup is expected to lift hotel prices in the host cities by an average of 300 percent around opening matches, according to the New York Times.
“This final rule delivers on affordability — for New Yorkers traveling across the country to see the World Cup and visitors who want to experience our incredible city,” said Levine. “DCWP will use its full enforcement authority to ensure hotels comply with the laws and rules of our city. We will be vigilant to ensure consumers have transparent transactions and that workers’ rights are respected.” This is according to Bloomberg reporting.
The FIFA World Cup is expected to bring more than 1.2 million visitors to the New York-New Jersey region, according to a report analyzing the tournament’s economic impact. This is a way to lower costs for visitors. The city is preparing for an influx of tourists during the World Cup.
Mayor Mamdani focused his campaign on an affordability platform.
The hotel fee policy was first proposed under former Mayor Eric Adams. It was made enforceable this week.
The city has new authority to penalize hotels and booking platforms that use drip pricing. This is where mandatory charges appear only late in the booking process.
The rule’s reach extends well beyond hotels in New York City. Any hotel or booking site that advertises a room price to New York City consumers must include all mandatory fees. This is enforced even when the displayed price is shown anywhere.
For example, a hotel that is advertised on a site that can be accessed from a booking site viewed by New Yorkers would face penalties if it advertises a nightly rate that excludes certain fees.
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Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
