Airbnb Adopts Mandatory Display of Total Price Due to Biden-Era Policy Change
Airbnb is finally displaying the actual price you'll pay for a stay, thanks to their new policy that shows fees and taxes in most locations, starting from May 12, 2025, as a response to the upcoming Biden-era FTC rule aimed at tackling junk fees and misleading pricing[1].
Airbnb users have long grappled with excessive surcharges, such as cleaning fees that often skyrocket the total cost of a stay. In 2022, a NerdWallet analysis revealed the median cleaning fee for a one-night stay was a staggering $75, accounting for 25% or more of the total price[2].
Originally, Airbnb displayed the total price only in certain regions like Europe, Australia, Canada, and Korea, which had stricter regulations mandating pricing transparency[1]. However, guests in the U.S. and other countries had the option to toggle on the full price starting in 2022. The company reported that approximately 300,000 listings removed or lowered their fees after the launch of the price toggle tool, with around 40% of listings scrapping the cleaning fee[1].
While toggling on the full price was an optional feature for most users, it's now the default option, making it clear that the total cost you see in the listings is what you'll ultimately pay[1]. Airbnb claims that 17 million guests have utilized this new feature, which aligns with consumer expectations.
The "Rule on Unfair or Deceptive Fees," introduced under the Biden administration, is designed to prevent businesses from hiding fees and requires them to display the total price, including all fees and taxes, from the start[1]. However, challenges lie ahead, as the Trump administration is trying to undo caps on credit card late fees and bank overdraft fee limits, which could potentially hinder the implementation of this rule[1].
So, gear up, fellow travelers, as it seems the era of hidden fees on Airbnb might finally be drawing to a close!
- The upcoming Biden-era FTC rule, aimed at addressing junk fees and misleading pricing, will likely impact the tech industry and businesses like Airbnb in the future.
- In 2022, the average cleaning fee for a one-night stay on Airbnb was found to be a significant $75, accounting for a substantial portion of the total price.
- Airbnb's new policy, starting May 12, 2025, will display the actual price users will pay for a stay, including fees and taxes, in most locations.
- According to Gizmodo, approximately 300,000 Airbnb listings removed or lowered their fees after the launch of the price toggle tool in 2022.
- The new rule on Unfair or Deceptive Fees, introduced under the Biden administration, requires businesses to display the total price, including all fees and taxes, from the start, promoting transparency in the finance sector.
- Despite the impending rule, challenges lie ahead, as the Trump administration is trying to undo caps on credit card late fees and bank overdraft fee limits, which could potentially hinder the implementation of this technology-driven policy.
