New York City Mayor Zohran Mamdani has taken a step to protect travelers and residents alike by banning so-called “junk fees” on hotel stays, regardless of where the lodging is located, including Long Island and hotels outside the city, if the booking is made by a New York City resident.
The rule, announced by the Department of Consumer and Worker Protection (DCWP), goes into effect February 21 and aims to eliminate hidden charges that have long frustrated consumers.
Under the new regulation, hotels that advertise to New Yorkers, whether they’re in the five boroughs, across Long Island, or even in other states, can no longer tack on surprise fees after a room rate is displayed.
These extra charges, often labeled as “destination,” “resort,” or “hospitality service” fees, have obscured the true cost of hotel stays and driven up travel expenses for residents booking nights both in and out of town.
“This new rule will ensure that New Yorkers and visitors alike are not stuck paying hidden hotel fees, and will instead save millions of dollars each year,” Mamdani said at a press event announcing the final rule.
The rule also requires transparency around credit card holds and unexpected deposits, another tactic that has caught travelers off guard and tied up available credit without clear disclosure at the time of booking.
Hotels must now include all mandatory costs in the total advertised price before a reservation is completed, giving consumers a clear picture of what they’ll pay.
City officials said the crackdown is part of a clampdown on deceptive pricing practices that drain household finances and erode trust in the marketplace. The DCWP received hundreds of complaints last year related to hidden hotel fees and surprise holds, prompting the city to adopt one of the nation’s strongest consumer protection rules against these charges.
Economists estimate that eliminating these junk fees could save travelers, and particularly New York City residents, tens of millions of dollars annually by making prices more transparent and straightforward.
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