Fee Transparency Could Save U.S. Hotel and Short-Term Rental Customers $1 Billion Per Year

Key Points

• The FTC published a proposed rule document emphasizing fee transparency in sectors like the hotel and short-term rental industries.
• Consumers could save between $663 million to $980 million annually over ten years due to more efficient shopping from greater price transparency.
• The rule suggests a minimum benefit of $6.65 per consumer per year, highlighting significant time savings and compliance costs.

Summary

The U.S. Federal Trade Commission has proposed rules to enhance fee transparency in sectors such as hotels and short-term rentals, aiming to save consumers substantial time and money. The expected benefits from these rules could lead to annual consumer savings ranging from $663 million to $980 million, totaling up to $8 billion over a decade. These savings stem from more efficient shopping processes and are balanced against the costs of compliance for firms, with a minimum benefit of $6.65 per consumer annually.