NYC Fights Hidden Hotel Fees: Strong New Rules Set to Save Consumers $46 Million

New York City has taken decisive action against hidden fees in the hotel industry, aiming to enhance transparency for consumers and uphold fair practices within businesses. Mayor Zohran Mamdani, accompanied by Commissioner Sam Levine and various stakeholders, announced measures to ban deceiving charges, often labeled as “destination fees,” “resort fees,” or “hospitality service fees,” which have become common pitfalls for travelers.

The Department of Consumer and Worker Protection (DCWP) crafted these regulations following a surge in consumer complaints, with over 300 reports logged in 2025 alone regarding hidden hotel fees. The new rule, effective February 21, 2026, prohibits hotels from charging unexpected credit card holds and mandates that total pricing, including all fees, be clearly disclosed before a booking is finalized. This initiative is expected to save consumers an estimated $46 million in 2026 (Source: https://youtu.be/x0nAaixhVcc).

To enforce these regulations, the DCWP plans a comprehensive approach that combines strict oversight with educational support for both businesses and consumers. The agency is set to receive additional funding to enhance staffing, allowing for more robust inspections and outreach efforts. This funding is vital as the agency currently operates with a significant vacancy rate, which hampers the enforcement of these new rules (Source: https://getlocalpost.com/2025/02/07/nyc-council-discusses-budget-allocations-for-new-workplace-law-enforcement/).

During the announcement, Mandani emphasized that the initiative represents the strongest hotel consumer protections in the nation, asserting that most hotels operating in good faith should have no concerns meeting these new standards. The mayor also highlighted the ongoing actions to ensure that violations do not go unpunished, indicating that those failing to comply would face increased scrutiny (Source: https://youtu.be/x0nAaixhVcc).

The city’s broader commitment to consumer and worker protections includes strengthening worker rights against exploitation and ensuring compliance among businesses. This announcement builds upon past efforts, which faced challenges but are now poised for success under the current administration’s renewed focus on fairness and transparency (Source: https://getlocalpost.com/2025/12/09/new-york-city-secures-historic-38-million-settlement-for-worker-protections-against-starbucks/).