Airbnb implements total price display to combat hidden fees

On April 21, 2025, in the United States, Airbnb initiated a significant change to its pricing display method, aligning with its goals for greater transparency and consumer protection. The platform now defaults to showing the total price of a stay, which includes all fees and taxes, rather than just the base nightly rate. This shift aims to address one of the major complaints from users regarding unexpected costs that inflate the price of an Airbnb rental compared to traditional hotels. This decision comes in light of new federal regulations on junk fees scheduled to take effect on May 12, 2025. The Federal Trade Commission (FTC) announced last year that new regulations would prohibit businesses, including short-term rental platforms like Airbnb, from concealing additional fees within their pricing structures. The rule mandates that total pricing must be clearly presented upfront before consumers finalize their agreements. While this regulation doesn’t limit how much companies can charge, it emphasizes the need for transparency in pricing, compelling Airbnb to adopt clearer communication methods for its customers. Previously, the company had tested this pricing model in various regions, including Australia, Canada, and parts of Europe, since 2019. In the last few years, the feature has been rolled out as an option for users in Canada and the United States, with approximately 17 million guests utilizing it so far. The motivation behind this change is not solely to comply with legal requirements but also to improve user experience and foster trust in the brand by ensuring that guests are fully aware of the total cost before booking. As Airbnb continues to adapt to evolving consumer preferences and regulatory environments, displaying full prices upfront represents a critical step toward maintaining competitiveness in the marketplace and assuring guests that they won’t be surprised by hidden charges at checkout. The company’s commitment to affordability and transparency aligns with broader trends in the hospitality industry as travelers increasingly prioritize clear and straightforward pricing when choosing accommodations.