Hotel resort fees must be disclosed and unexpected credit card holds on stays are being banned in New York City, Mayor Zohran Mamdani announced Wednesday.
Starting February 21, the city will prohibit hotels from advertising room rates that exclude mandatory charges. This new city rule follows a Federal Trade Commission (FTC) rule that took effect nationwide last year, requiring hotels, short-term rentals, and event ticket sellers to display total prices upfront, excluding only taxes and some other optional charges.
The FTC rule targets a common frustration: a traveler comparing hotels on a booking site selects what appears to be the cheaper option, only to discover mandatory fees at checkout. Few consumers restart their search at that point.
Economists cited by the city estimate the ban will save consumers more than $46 million this year.
“These fees go by many different names: destination fees, resort fees, hospitality service fees,” Mamd