New York City is banning hidden hotel fees.
According to Yahoo News, it has the strongest hotel consumer protections anywhere in the country. New York City Mayor Zohran Mamadami said that “there was a lot of concern that there would be lobbying or efforts to take it 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.” Additional mandatory charges will no longer be disclosed making it difficult for consumers to understand the overall cost. Many hotels also issue unexpected credit card holds or deposits with confusing terms. In 2025, DCWP received more than 300 consumer complaints about hidden hotel fees or unexpected holds.
Worker Protections Prevent Hotels from Charging Mandatory Resort and Destination Fees Fees.
It also states that a penalty will be imposed if the service charge is not included in the advertised room price. Additionally, hotels are required to disclose credit card holders and deposits in advance. The provision protects travelers whose available credit may dwindle rapidly during a stay, city officials said.
“Under this rule, if you check and suddenly there’s a charge you haven’t seen before, that’s illegal,” Samuel AA Levin, commissioner of the Department of Consumer and Labor Protection, said at a news conference last Wednesday.
According to the New York Times, the increase in tourism caused by the World Cup is expected to increase hotel prices in host cities by an average of 300 percent around the opening matches.
“This final rule provides affordability – both for New Yorkers traveling across the country to watch the World Cup and for visitors who want to experience our incredible city,” Levin said. “DCWP will use its full enforcement authority to ensure that hotels comply with our city’s laws and regulations. We will remain vigilant to ensure that consumers have transparent transactions and that workers’ rights are respected.” This is according to the Bloomberg report.
The FIFA World Cup is expected to draw more than 1.2 million spectators to the New York-New Jersey region, according to a report analyzing the economic impact of the tournament. This is a way to reduce costs for visitors. The city is preparing for an influx of tourists during the World Cup.
Mayor Mamdani focused his campaign on the affordability platform.
The hotel fee policy was first proposed under former Mayor Eric Adams. It was implemented this week.
The city has new powers to penalize hotels and booking platforms that use drip pricing. This is where mandatory charges only appear at the end of the booking process.
The rule’s reach extends far beyond New York City hotels. Any hotel or booking site that advertises a room price to New York City consumers must include all mandatory charges. This also applies if the displayed price is shown anywhere.
For example, a hotel that is advertised on a site that is accessible from a booking site visited by New Yorkers will face penalties if it advertises a nightly rate that does not include certain fees.
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