Trying to settle the hotel vs vacation rental question? Compare the all-in price, not the nightly rate, because both can add mandatory fees that surprise you at checkout. Then pick the stay that fits your group.
For more planning help, browse our hotel travel tips.
| Item | Value |
|---|---|
| US hotels charging a mandatory resort, destination or amenity fee (AHLA data) | 6 percent |
| Average mandatory resort fee at those hotels | $26 per night |
| Fees and surcharges hotels collect on top of nightly rates (2018 analyst report) | Nearly $3 billion a year |
| FTC final rule on junk fees announced | December 17, 2024 |
| FTC commission vote on the rule | 4-1 |
| Public comments the rulemaking drew | More than 72,000 |
These figures come from Afar and Skift, both reporting in December 2024. Figures and rules can change, so check the sources before you rely on them.
Where extra charges hide in hotels and rentals
Both kinds of stay can add mandatory charges on top of the nightly rate. At hotels, the best-known one is the resort fee, which Afar describes as covering on-site amenities like the gym and pool, whether or not guests use them. Our explainer on what is a resort fee goes deeper on the charge itself.
Resort fees are not universal. The American Hotel and Lodging Association (AHLA) said its most recent data showed only 6 percent of hotels nationwide charge a mandatory resort, destination or amenity fee, averaging $26 per night, as Afar reported in December 2024.
The same report notes a 2018 analysis by hotel industry analyst Bjorn Hanson, which found hotels collect nearly $3 billion a year in fees and surcharges on top of nightly rates. It also says consumers have complained that short-term lodging companies such as Airbnb and Vrbo fail to clearly show cleaning and other fees added to nightly rates.
Bisnow’s coverage of the rule describes junk fees as unexpected but mandatory surcharges. Bisnow lists examples such as:
- WiFi
- Phone calls
- Fax machines
- Fitness centers
- Parking
What the FTC’s December 2024 rule changed
The Federal Trade Commission (FTC) unveiled its final junk fees rule on December 17, 2024. Skift reported that it is heavily targeted toward travel companies, specifically hotels, short-term rental companies and online travel agencies.
Afar reported a 4-1 commission vote, after a rulemaking that drew more than 72,000 comments. Under that rule, the first price you see when searching should include the total cost, excluding taxes or local government fees.
As of Skift’s December 2024 report, the rule prohibits two practices:
- Misrepresenting the total cost by omitting mandatory fees.
- Misrepresenting the nature and purpose of a fee.
The rule is not a ban on fees. The FTC said it does not prohibit any type or amount of fee or any specific pricing strategy, as quoted by Skift. It requires businesses that advertise prices to tell consumers the whole truth up front.
Skift also noted at the time that the rule faced potential invalidation by Congress. Check its current status before assuming how a listing must display its price.
How booking sites displayed prices in late 2024
Practice varied by platform. Afar reported that most hotel companies and booking sites had already begun showing prices that include all fees and taxes, in response to a California state law and lawsuits by state attorneys general and others.
For rentals, Afar’s December 2024 check found a split:
- Airbnb still listed initial search prices exclusive of mandatory cleaning fees, although those fees appeared before final booking.
- Vrbo showed prices with all fees, but not taxes, on initial searches.
The lesson for your hotel vs vacation rental comparison is practical. A rental that looks cheaper in search results may not be once cleaning fees are added, and a hotel may show a lower rate before a resort fee. Compare final totals, not first impressions.
Where you reserve matters too. Our look at how to book hotel direct or online travel agency covers that side of the decision.
Does the rule cover longer rentals?
No, not in the way many renters feared. Bisnow reported on December 18, 2024 that the rule does not mandate the same disclosures in other industries, although apartment and single-family rental owners had feared they would be included.
The National Apartment Association argued that a rental housing deal differs from a hotel stay because it involves an ongoing contract, typically at least a year long. If you are comparing a multi-month stay, do not assume the same price display protections apply.
A checklist for comparing total cost
Use the same steps for any hotel or rental you are considering. The aim is a fair, all-in comparison.
- Find the total price with every mandatory fee included, not just the nightly rate.
- Ask what each fee is for. The FTC’s rule requires businesses to clearly and conspicuously disclose the nature, purpose, identity and amount of fees before you agree to pay, per The Points Guy.
- Check taxes and local government fees separately, since the first price shown may exclude them.
- Compare the finished totals for your actual dates and group size.
- Re-check the rules and the listing before you pay, because policies can change.
Frequently asked questions
Is a hotel or a vacation rental cheaper?
Show answer
The sources here do not rank one above the other. Both can add mandatory fees, so compare the final total for your dates instead of the nightly rate.
Does the FTC rule ban resort fees?
Show answer
No. As of the FTC’s December 2024 announcement, quoted by Skift, the rule does not prohibit any type or amount of fee. It requires that mandatory fees be included in the advertised total.
Do vacation rentals have to show cleaning fees up front?
Show answer
The rule applies to vacation rentals such as those booked through Airbnb, The Points Guy reported. As of Afar’s report dated December 19, 2024, Airbnb still excluded mandatory cleaning fees from initial search prices but listed them before final booking.
Are taxes included in the first price I see?
Show answer
Not necessarily. Afar described the first price as including the total cost, excluding taxes or local government fees, and Vrbo showed all fees but not taxes on initial searches.
