For decades, hotel contracts have been padded with opaque fees—resort charges, internet access, administrative service fees, and more. What starts as a competitive room rate can quickly become a bloated final bill. But now, change is coming—and meeting planners in pharma, incentive, and corporate travel need to be ready.
The Legal Landscape Is Shifting
The Federal Trade Commission (FTC) is finalizing a new federal rule that will require full, upfront disclosure of all mandatory hotel fees—from resort charges to Wi-Fi, gym access, and banquet service surcharges.
States like California, Pennsylvania, and Nebraska are already cracking down. The FTC’s national regulation is expected to roll out in 2025.
This will make it illegal to:
Hide fees in fine print
Add charges post-contract
Exclude taxes, gratuities, and fees from advertised pricing
Why This Matters for You
Pharma Meetings
HCP programs face strict transparency and auditing. Surprise fees can create compliance headaches and audit risk. Every dollar must be accounted for and justifiable. This rule strengthens your ability to demand honest pricing.
Incentive Programs
Perks shouldn't come with hidden strings. Resort fees that mask higher rates or force on-site spending will be harder to justify. Expect tighter scrutiny on bundled pricing.
Corporate Travel
Tired of reconciling inflated invoices? Hidden surcharges will need to be disclosed upfront. This creates cleaner contracts, better forecasting, and tighter travel policy enforcement.
What About Loyalty Programs?
Hotel loyalty programs—like Marriott Bonvoy and Hilton Honors—typically exclude resort and admin fees from points accrual. That may change. With full fee transparency, programs may be pressured to calculate points on total spend, not just base room rate.
Elite travelers might notice a shift in how benefits like waived internet or gym fees are marketed—since those perks will no longer offset what hotels can’t legally charge anyway.
Vegas, Resorts & “Creative” Charges
High-fee destinations like Las Vegas, Orlando, and Miami will feel the heat. Some properties may roll resort fees into room rates; others may rename charges to sidestep regulation. Meeting planners should be on alert for relabeled costs such as “amenity fees,” “experience bundles,” or “urban destination charges.”
What You Can Do
Require total cost proposals in your RFPs
Demand line-item breakdowns in all contracts
Challenge vague language like “plus applicable service charges”
Get concessions in writing and not tied to conditional spend
Work With a Planner Who Knows the Rules
At Summit Management Services, we specialize in navigating hotel contracts with these changes in mind. We advocate for clear pricing, honest negotiations, and your bottom line.
If you’re booking your next hotel or meeting, don’t go it alone.
claudette@summitmgt.com
joe@summitmgt.com
rob@summitmgt.com
Let’s review your next hotel contract—before the hidden charges find their way back in.
#AskClaudette #JoeKnows #AskMrLipman #AskRob