March 2025
We wanted to give you a heads-up about a new Federal law on drip pricing that goes into effect May 12, 2025. This means that any traveler viewing rates on your booking engine from the U.S. must see the full price upfront—including the room rate and any mandatory fees (excluding government taxes and fees).
What This Means for You
Under the new Federal Trade Commission (FTC) rule, hotels can no longer display base room rates separately from required fees like resort or service charges. The goal? More transparency for travelers and no more surprise costs at checkout.
How Cendyn is Helping You Stay Compliant
We’ve already made enhancements to the Booking Engine to ensure compliance, including:
- The ability to configure and display taxes and fees clearly
- Clear distinction between mandatory vs. optional fees
- An option to show inclusive tax pricing upfront
We initially rolled out these features in preparation for California’s pricing laws in July 2024, and now we’re extending them nationwide to keep you ahead of the curve.
No action is needed on your part right now, but we’ll share more details soon on what this means for your setup. If you have any questions, we’re here to help!
This information reflects Cendyn's current interpretation of applicable laws and should not be solely relied upon by customers or partners. We recommend that you acquaint yourself with this new law and consult legal counsel for further guidance.
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