On July 1st, California will introduce Senate Bill 478, also known as the California Junk Fee Law. This aims to end the practice of “drip pricing”, where hotels or other hospitality businesses advertise low rates but add mandatory extras, like resort fees, later on in the process.
Under this new law, businesses will have to include all non-governmental fees in their advertised room rates, so customers know the true costs of their stay upfront and won’t have any surprises at checkout. Keep reading to learn more about its implications for hotels, and steps Triptease would recommend taking ahead of the 1st of July.
Change is never easy, but this one definitely comes with a silver lining.
We appreciate that every hotel has unique systems and processes in place, so this approach will be be different for everyone. But here are a few key things all hoteliers should aim to do before July 1st:
While currently this law is specific to California, other states are considering enacting similar legislation. So even if you’re not operating in California, it could be a good idea to think about how you can comply with these kinds of laws in the future. Plus, whether you need to comply ASAP or not, it’s a good time to think about your current pricing and whether it feels transparent and fair to guests on your site.
Triptease has been working for over a decade to help hoteliers adapt to changes in the hotel booking landscape, so we’re here to make sure that you feel prepared for anything that comes your way. Join us on the Tuesday 2nd July for our webinar on the EU Digital Markets Act, and its impact on hoteliers. Bring your questions and concerns around SB 478, the DMA, or all things direct booking. Our experts will do their best to help!