A U.S. SENATE committee recently passed a bipartisan bill aimed at achieving pricing transparency for hotels, short-term rentals, and online travel platforms. However, the Senate failed to advance the Tax Relief for American Families and Workers Act, drawing criticism from the American Hotel & Lodging Association.
The Committee on Commerce, Science & Transportation’s approval of the Hotel Fees Transparency Act 2023 comes amid criticism of several hotel chains for lacking transparency in displaying room charges. AHLA called it an important step toward a more transparent booking process and a level playing field across the lodging industry.
The bill, introduced by Sens. Amy Klobuchar, D-Minnesota, and Jerry Moran, R-Kansas, on July 31, now awaits a full Senate vote.
“We thank Sens. Klobuchar and Moran for their leadership on this issue, and we urge the Senate to quickly bring this bill to the floor for a vote,” said Kevin Carey, AHLA’s interim president and CEO. “The House has already passed similar common sense legislation and we look forward to working with both chambers to advance this bill to the president’s desk.”
The Hotel Fees Transparency Act seeks to prohibit hotels, short-term rentals, metasearch platforms and online travel agencies from excluding mandatory fees, other than taxes and government charges, from the advertised room price.
AHLA supports a single standard for mandatory fee display across the lodging industry, the association said in a statement. AHLA’s latest data shows that only 6 percent of U.S. hotels charge a mandatory resort, destination, or amenity fee, averaging $26 per night.
Tax relief bill stalls
H.R. 7024, the tax relief bill, would extend the 100 percent bonus depreciation for leasehold and other qualifying interior improvements through the end of 2025. In 2026, bonus depreciation would fall to 20 percent and expire after 2026.
The bill also would include a retroactive, four-year extension of the taxpayer-favorable EBITDA standard for measuring the amount of business interest deductible under section 163(j). It also would enhance the Child Tax Credit.
“We’re disappointed the Senate failed to advance this bipartisan bill, which would provide critical tax relief for hoteliers who are still struggling to deal with a nationwide workforce shortage, multiple harmful new federal regulations, and the lingering effects of inflation,” Carey said.
In June, AAHOA and AHLA welcomed the passage of the No Hidden FEES Act, which aims to establish a uniform standard for transparent mandatory fee displays across the lodging industry.
