New California law abolishes hidden fees for vacation rentals & hotels.

Starting in just over a month, a new piece of legislation from California will significantly impact accommodation businesses in Hawaii. The legislation in question is California Assembly Bill No. 537, which is particularly significant for travelers heading to Hawaii from California and beyond. Passed in October 2023, this bill is set to come into force on July 1, 2024, and aims to ensure greater transparency in the advertised pricing of short-term rentals.

“A place of short-term lodging, an internet website, application, or other similar centralized platform, or any other person shall not advertise, display, or offer a room rate, as defined in Section 17561, that does not include all fees or charges required to stay at the short-term lodging except taxes and fees imposed by a government on the stay.” - California Assembly Bill 537.

Californians represent the majority of Hawaii's tourist population. The proposed legislation will affect not only this group but all visitors. Establishing distinct regulations for various visitor categories booking online presents a challenge. Consequently, a broader effect on the websites of Hawaii's hotels and vacation rentals is anticipated. Below is a concise summary of several potential consequences of the bill.

Price transparency is beneficial. It allows all travelers to plan their budgets more effectively, avoiding unforeseen expenses and facilitating a more dependable and streamlined travel planning experience. Furthermore, it entices better competition among lodging operators.

1. Inclusive Rate Disclosure Mandate: The proposed legislation requires that all displayed pricing for temporary accommodations, such as hotels, motels, and holiday rentals, comprehensively include all charges and fees, with the exception of taxes and fees imposed by the government.

This legislation affects all California residents booking accommodations, whether in Hawaii or any other location. It aims to guarantee that the total expense of their stay in Hawaii is transparent from the outset. The goal is to eliminate deceptive promotional practices that hide extra costs until later stages of the reservation process.

The transparency mandate comes into effect when Californian visitors (and potentially those from other regions) set their travel dates during an accommodation search.

2. Enforcement and Penalties: The law's reach extends to any entity marketing to Californians, with legal infractions incurring fines up to $10,000 for each offense. Enforcement is anticipated from multiple legal fronts, including municipal lawyers, district attorneys, county legal advisors, and the Attorney General of California.

For hoteliers and proprietors of short-term rentals in Hawaii, it has become essential to understand the new regulations. Travelers from California, accustomed to clear pricing, will soon anticipate similar transparency in Hawaiian accommodation prices. Within the next six weeks, this expectation will take effect, necessitating Hawaiian businesses in the hospitality sector to implement suitable measures that comply with these regulations and improve their market position.

The impending adjustments are part of a larger movement towards consumer protection, focusing on the eradication of hidden charges and the encouragement of truthful marketing within the travel sector.