Mayor Zohran Mamdani’s administration has announced a policy aimed at eliminating hidden fees and unexpected credit card holds in the hotel industry. According to the City of New York, the directive addresses charges often listed as "resort fees" or "hospitality service fees," as well as surprise credit card holds, with an estimated annual savings for consumers of around $46 million.
Effective February 21, the new rule requires that advertised hotel room rates in New York City include full disclosure of all mandatory fees. Announced by Mayor Mamdani alongside representatives from business, consumer, and labor sectors, the initiative aims to ensure that the price shown to customers reflects the total amount they will pay, reducing unexpected charges for both visitors and New Yorkers traveling outside the city.
Last year, the Department of Consumer and Worker Protection (DCWP) received more than 300 complaints related to hidden fees and unexpected credit card holds, prompting the new regulations. Modeled on Federal Trade Commission standards, the DCWP will enforce the rule to ensure compliance among hotels and support fair practices for all businesses.
The new regulation requires hotels in New York City to fully disclose all fees associated with a stay. It is intended to ensure that consumers see the total cost upfront and could result in millions of dollars in annual savings for both residents and visitors.
In addition to the projected consumer savings, the new regulation is part of a broader set of city policies aimed at promoting transparency and fairness in the hotel industry. The Hotel Service Disruption Act requires hotels to inform customers of any service changes during their stay, while the Safe Hotels Act prohibits illegal subcontracting. These measures are intended to support both consumer protection and the enforcement of workers’ rights.
