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Airbnb Enhances Pricing Transparency Ahead of FTC Regulation

The Federal Trade Commission (FTC) recently enacted a significant ruling concerning “junk fees,” which is set to take effect on May 12, 2025. This measure mandates that companies involved in ticket sales and short-term accommodations must prominently disclose all associated fees, such as service and cleaning charges, at the point of purchase. This initiative aims to foster transparency and combat deceptive pricing practices.

In a proactive move, Airbnb has made an early announcement to align with these upcoming changes. On Monday, the company revealed that it will now provide all guests around the world with visibility into the total cost of their stay, including all fees—excluding taxes—when they explore search listings.

Airbnb stated, “With the global rollout of total price display, we’re making it easier for guests to better understand the price they’ll pay, and for hosts to succeed in a more transparent marketplace.” The company expressed confidence that these enhancements will lead to improved guest experiences and bolster the growth of its community on a global scale.

Notably, several regions—including parts of Europe, Canada, South Korea, and Australia—have already implemented total pricing transparency since 2019, adhering to their respective local regulations. In the United States, the total price feature has been optional for the past two years, during which around 17 million guests have taken advantage of this option. The introduction of full price disclosure has reportedly contributed to a reduction in cleaning fees imposed by hosts.

According to Airbnb’s financial disclosures for the fourth quarter of 2023 and the full fiscal year, nearly 300,000 listings opted to either lower or eliminate cleaning fees after the feature was enabled. Approximately 40% of active listings have removed cleaning fees altogether. Airbnb emphasized, “Guests everywhere will now see the total cost of their reservation, including all fees before taxes. We know that clear, upfront pricing improves the Airbnb experience for both guests and hosts.”

This move toward transparency follows a broader trend in the hospitality industry as companies seek to enhance their customer relations and build trust through clarity in pricing.

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