Airbnb Guests, We Feel You, that $100 listing shouldn’t become $157 at checkout.

If you've ever planned a vacation and felt personally attacked by a cleaning fee, you're not alone. The classic Airbnb bait-and-switch, a low nightly rate that explodes at checkout  is finally getting a reality check.

The Federal Trade Commission (FTC) rule starting May 12, 2025 is a new Price Transparency Rule forcing Airbnb, Vrbo, and all short-term rental platforms to show guests the full price upfront. No more hidden fees. No more checkout sticker shock. No more rage-quitting your vacation dreams over a $75 admin fee.

For guests? This is a major win.

For hosts? This is the time to get your pricing game together.

We’re breaking down what the FTC’s new rule means for guests, how it affects the booking experience, and what Airbnb hosts and property managers need to do to stay compliant. Whether you’re a traveler fed up with hidden fees or a host wondering how this will impact your bookings — we’ll walk you through it all.

Why This Matters for Guests

Booking an Airbnb can sometimes feel like playing financial Jenga for guests, as a $90/night deal suddenly becomes $145/night after cleaning and "host service" fees.

Want to book for 3 nights? Surprise, you’re now funding your host’s patio upgrade.

With the new FTC rule:

• You’ll know exactly what you’re paying before clicking “Book”
• You can compare listings fairly
• You’ll avoid that sinking “oh no” feeling at checkout

It’s transparency. It’s clarity. And honestly… it’s about time.

According to the FTC, the goal is to eliminate “junk fees”, those extra charges that aren’t clearly disclosed until the final step of checkout. This applies not only to short-term rentals.

In the world of vacation rentals, that means:

• Cleaning fees
• Service fees
• Resort or admin charges

must all be baked into the initial price guests see. No more bait-and-switch. What you see is what you pay.

What This Means for Hosts (Yes, You)

Now, if you’re a host, this rule might sting a little at first, but don’t panic. You’re not being told what to charge, just how to display it.

Here’s what you’ll need to do:

• Update your pricing strategy: Roll your cleaning/service fees into your nightly rate
• Stay within platform rules: Airbnb will automatically apply these changes platform-wide, but double-check your listing anyway
• Get strategic: Higher upfront prices might feel riskier, but transparency builds trust, and that means better reviews and more bookings in the long run

Pro Tip: Hosts who already advertise all-in pricing are ahead of the curve, and more likely to show up in filtered guest searches.

How to Stay Compliant as a Host

If you're a host or investor, here’s your to-do list before May 12:

✔️ Rework your pricing to include all fees upfront

✔️ Avoid off-platform payments (they’re a no-no under this rule)

✔️ Only collect guest data if it’s legally required

✔️ Monitor platform updates, Airbnb, Vrbo, and others will likely auto-adjust listings, but check your setup to be sure

The best part is that this rule is part of a wider crackdown on deceptive pricing across multiple industries. Think of those sneaky concert ticket fees, hotel “resort” charges, or surprise delivery markups, they’re all under fire.

President Biden even made junk fees a talking point in his economic agenda, calling them “just plain wrong.” So yes, this is more than a vacation rental issue, it’s part of a national movement toward consumer fairness.

In a world where price transparency is finally becoming law, guests are getting the honesty they’ve been craving, and hosts are being nudged into a better business model.

Yes, it’s an adjustment. But done right, it means fewer disputes, clearer expectations, and more trust in the booking process.

Need help bundling your pricing or updating your tax setup?

Let Lodge Compliance handle the back end, so you can stay focused on creating unforgettable guest experiences.

Sources:

• FTC Final Rule: Price Transparency and Junk Fees – Dec 2024
• AP News: FTC to Require Upfront Price Disclosure on Rentals, Hotels, Tickets
• The Verge: FTC Moves to Ban Hidden Fees on Booking Platforms

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