New California legislation...

[Michael Baum]

Got this note from VRBO today:

Dear Partner,

We are writing to inform you that effective July 1, 2024, California Assembly Bill 537
will prohibit advertising, displaying or offering a rate that does not
include all fees or charges required to stay at a short-term lodging
(except taxes and fees
imposed by a government on the stay).
For example, cleaning fees will now need to be included in the nightly
rate shown to travelers.


Vrbo is working on a solution related to this law.
We will be sending additional details on related actions for you in the coming weeks so that you are prepared before July 1.

This information is based on Vrbo’s current understanding of applicable laws and should not be relied on by partners.
We encourage you to familiarize yourself with this new California law and seek legal counsel for further guidance.


Best regards,
Vrbo Team

We don't have any rentals in CA but I am curious how other with STRs in CA are going to deal with this. Basically just add the cleaning fee to the nightly rate? Spread it out over the entire time? Kind of a hassle.

[Dan H.]

Airbnb already provides the user the ability to see the full price including all fees.  I personally think this should be the default setting and should meet the requirements. 

I dislike hidden fees.  I especially dislike them when their primary purpose is to make a political statement and have stopped patronizing some places that do this. 

Due to high rate of inflation, we are adding 3% to the total.

Due to rising energy prices, we are adding 3% to the total. 
in order to provide our workers health insurance we are adding 5% to the total. 

Latest example was at a hallmark.  Due to high cost of doing business in CA we are adding 3% charge ….  I left the over priced birthday card I was going to buy ($8) directly underneath the sign and went to the grocery store next door and purchased a different over priced card there. 

Virtually always I have gotten the fee removed but do not patronized the place again until the hidden fee was removed.  Add the price to the menu items.  Do not make thinly veiled political statements on the menu.  

However, I do not like the hidden fees even if not political.   You get email offering Vega’s room for $x (the x being a function of how much they believe you will spend,the more they think you will spend the lower the price for the room), but you get there and there is a large resort fee (in addition to the various taxes).  I have been told that they cannot remove it but when I called a competitor while checking in asking if they had rooms, they offered to remove it (Liars).  I went to the competition (competitor matched room rate) anyways and stated that I did not appreciate them lying and/or the hidden fees.  Unfortunately competitor also had resort fee, but at least did not do the bait and switch.

Just add the mandatory costs to the hotel room rate.  Especially if it is charged per night.

So I look forward to less hidden fees.  I also let my pm and OTAs worry about being compliant with the new law.