- The Federal Trade Commission's Junk Fees Rule will targets bait-and-switch pricing for live-event tickets and short-term lodging.
- The rule will go into effect in 120 days, that's by mid-April.
- Watch the video below to hear how this will affect our local tourism industry.
BROADCAST TRANSCRIPT:
With 2025 around the corner — maybe you're planning your next trip.
I'm Alberto Camargo, your College Town neighborhood reporter.
I'm breaking down a federal rule that will make spending on vacations a little clearer and how it affects our local tourism industry.
"Junk fees" will soon be a thing of the past thanks to the Federal Trade Commission.
It's Junk Fees Rule will make prices transparent for things like live-ticket events and lodging.
Music to the ears of frequent travelers like Fran Jester.
"You're renting a hotel room, you got to have a bed. Why are you charging me a fee for it?"
Fran says she's traveled all around the Caribbean and plans to book more trips soon.
And when she sees the final price at the first step —
"I think it'll be a better thing because then you'll be prepared by seeing them. You're thinking it's this price and then you get here and it's oh dear God!"
One group against the Junk Fees Rule: The U.S. Chamber of Commerce.
The chamber has said it supports transparency in pricing, but it thinks the rule is "an attempt to micromanage businesses' pricing structures, undermining their ability to offer consumers different price points."
I spoke off-camera with management at the Hotel Indigo in my neighborhood.
They told me the main benefit they see is fewer customers getting upset about fees — a positive change for neighbors and businesses alike.
This all comes as the U.S. Travel Association says the tourism industry has fully recovered, with 2025 expected to be even busier than pre-pandemic levels.
"Booming... every aspect of it is booming."
I spoke with Phil Swartz, a local travel advisor with 30 years of experience.
He says this is ultimately a huge benefit to consumers who may be put off by hidden fees.
"It's to prevent all that kind of stuff. When you're looking at something, lets see all the prices upfront, give all the prices, all the fees right there."
Phil says that transparency was previously a benefit you could only get using travel advisors.
But he doesn't expect booking trips online to negatively affect his business any more than online travel agencies have.
"We're giving advice. That's the biggest thing people come to us for, so that's really not going to change."
The Junk Fees Rule is set to go into effect in 120 days — that would put us in mid-April.
In College Town, Alberto Camargo, ABC27.
