Be cautious of those hidden fees.
New York City has recently prohibited deceptive hotel rates, shedding light on the often surprising additional costs for guests.
With the FIFA World Cup set for this summer, city officials announced on January 21 that concealing hotel charges and unexpected holds on credit cards will soon be illegal under new regulations. These rules come from the Department of Consumer and Worker Protection.
Designed to tackle mysterious “service” fees, the regulations mandate that booking platforms clearly itemize all charges in their advertised hotel prices.
For the first time in the U.S., hotels will have to reveal credit card holds and prepayments, detailing the amount held, the reason for it, and the refund timeline.
“With this rule, if you encounter an unexpected fee during checkout, it’s illegal,” DCWP Commissioner Sam Levin remarked during the announcement.
This law affects not only hotels in New York City but also any hotels and booking platforms advertising in the city. The regulations take effect on February 21.
Even if you’re not in NYC, it’s worth knowing about various hidden hotel fees out there.
Resort Fees
Resort fees and destination fees are among the most frequently encountered hidden charges by guests.
These daily fees, usually between $15 and $50, are added to the base rate and taxes to cover “amenities” like Wi-Fi, pool access, and gym use, according to Nerd Wallet.
In some cases, the resort fee can even surpass the cost of the room itself.
Essentially, these fees are for services you might not even use, such as paying for pool towels or local calls that no one answers, says Tracy Lumley, founder of Lumley Media, who shared her thoughts with Newsweek.
Early Check-in and Late Check-out
Lumley pointed out that charges for early check-in and late check-out are becoming increasingly common and often feel punitive.
“Hotels recognize that flight schedules don’t match standard check-in and check-out times,” she explained, “so instead of leveraging these services as incentives for frequent travelers, they monetize them.”
Wi-Fi
While free Wi-Fi isn’t standard yet, many guests are still surprised. Lumley mentioned that internet fees have increased and are being bundled differently.
“Now, instead of one fee per room, you might face charges for each device,” she added.
“Every phone and laptop incurs a charge for Wi-Fi. When multiple people with multiple devices are involved, those costs can rack up pretty quickly.”
Parking
While it may not be top of mind for those going to Manhattan, parking fees can still accumulate rapidly.
Lumley observed that dynamic parking rates are becoming more common, much like fluctuating hotel rates based on weekends or events.
“This is something travelers often overlook, but it can significantly impact your budget.”
Credit Card Holds
Hotels generally require a credit card at check-in, placing a hold to cover potential incidentals. According to Sophie, these holds can range from $20 to $200 beyond the room rate.
Levine highlighted that this crackdown on credit card practices means New York now offers “the most robust hotel consumer protections in the nation,” making it the first of its kind in the country.
