Junk fees are over: What it means for OTAs
📈 Aug 20, 2025: Booking Holdings settles for $9.5M with Texas over hidden fees, highlighting increased regulatory focus on travel pricing. The FTC's new "Junk Fees Rule," effective May 2025, mandates upfront disclosure of all fees, impacting online travel agencies (OTAs). Smaller OTAs face higher compliance costs, possibly leading to industry consolidation. Transparent pricing may enhance consumer trust and conversion rates but also pressures profitability. Investors should focus on OTAs that leverage transparency competitively.
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