All-In Pricing is here: what the FTC’s new rule means for metasearch

Starting this month, the Federal Trade Commission (FTC) is driving a fundamental shift in how hotel prices appear online through a sweeping new regulation. The FTC’s new “All-In Pricing” rule, which goes into effect May 2025, is designed to eliminate the widespread use of drip pricing—the practice of advertising low base rates only to tack on mandatory fees at checkout. This regulatory shift directly targets a common frustration in travel booking, where hidden costs have long misled customers and skewed competition.

What the FTC rule requires

Under the new rule, any advertised price must include all mandatory charges the consumer is required to pay, excluding government taxes. For hotels, this means incorporating resort fees, service fees, and any non-optional surcharges into the initial price display with no exceptions.

This isn’t just a shift in presentation; it’s a matter of legal compliance.

Why this matters for metasearch

Metasearch platforms like Google, Tripadvisor, Trivago, Kayak, and Bing are built on transparency and competition. Travelers compare options based on price, and suppliers compete in highly sensitive auction environments where even a few dollars can impact click-through and conversion rates.

Historically, some listings appeared lower in price simply because they excluded mandatory fees, causing these listings to gain an artificial advantage. With this new regulation, that’s no longer possible. The result: a more level playing field where all suppliers and distribution channels are held to the same standard, and consumers can make better-informed choices.

Practical tips to consider for the new FTC and platform pricing rules

To comply with the FTC’s all-in pricing regulation—as well as platform-specific policies from Google, Tripadvisor, and Trivago—all mandatory taxes and fees must be included in the price a user sees up front.

This requirement applies to all lodging types, including hotels, vacation rentals, and resorts. The total price must reflect everything a guest is required to pay to complete their stay, regardless of when the fee is collected (at booking or check-in).

Here’s what that means in practice:

• Include all mandatory charges, such as:
  • Occupancy taxes
  • City, county, or state taxes
  • Value-added or tourism taxes
  • Resort fees
  • Registration or cleaning fees
  • Transfer fees (e.g., a mandatory boat ride to a hotel)
  • Service fees required for the stay
• Exclude optional add-ons by default (e.g., parking, spa access, room upgrades)
• Fees must reflect what most users will encounter—if it’s generally unavoidable, it must be included in the total price shown in search results

It’s also best practice to display a clear breakdown of taxes and fees on both the landing page and the final booking screen. This improves transparency and reinforces user trust alongside adapting to metasearch platform policies.

Importantly, platforms will not accept pricing models that bury mandatory fees or list partner-specific charges (like markups or commissions) outside of the base rate. All costs that impact the final booking price must be reflected in the all-in total.

How platforms are responding

To enforce compliance and maintain user trust, key metasearch players are rolling out changes aligned with the FTC’s directive:

Google:

• Now requires that all-in pricing matches the final booking cost shown on the supplier’s website.
• Any mismatch may result in enforcement actions, including suspension from Google Hotel Ads.
• For more details, Google has published an updated policy outlining its policy requirements around price accuracy.

Tripadvisor:

• As of May 9, 2025, Tripadvisor will display hotel prices that include both the nightly base rate and all mandatory fees, averaged across the length of the stay.
• For example, a hotel priced at $100/night with a $60 mandatory fee for a two-night stay will be shown as $130 per night.
• This change applies across desktop, mobile web, and app experiences in the U.S. and Canada.

Trivago

• An All-Inclusive Pricing Model will be implemented in the U.S. market starting May 5, 2025—ahead of the FTC enforcement date.

How to prepare

If you’re a hotelier, OTA, or rate distributor, now is the time to ensure your pricing is accurate, compliant, and consistent across every channel.

Here’s where to start:

1. Audit your pricing: Review all rate plans and ensure that mandatory fees are clearly identified and passed through to all platforms.
2. Coordinate with tech partners: Work with CRS, channel managers, and connectivity providers like Mirai, Cendyn, DerbySoft, and others to ensure your pricing is properly structured and distributed.
3. Validate the booking experience: Make sure that the total price is visible before the user enters personal information—this is a key FTC requirement.

Need help? Koddi can coordinate

This is a pivotal compliance moment—but it doesn’t have to be overwhelming. If you’re unsure where to start, have specific technical questions, or need help navigating conversations with rate providers and publishers, the Koddi team is here to support you. We can assist with:

• Reviewing rate structures
• Coordinating across meta partners and connectivity providers
• Ensuring your campaigns stay competitive

This isn’t just a UX update or a platform policy—it’s a regulatory shift that redefines digital distribution in travel. By adopting all-in pricing, the industry is moving toward a more transparent and equitable marketplace. The changes may be technical, but the outcome is simple: fairer competition and a better booking experience for travelers.

Reach out to the Koddi team today to ensure you’re fully prepared for the FTC’s All-In Pricing rule. Whether you need help auditing your rate setup, aligning with metasearch requirements, or coordinating with tech partners, we’re here to help you stay ahead and stay compliant. Contact us to get started.