The most significant transformation in U.S. travel since airline deregulation is hanging by a political thread.
In its final weeks, the Biden administration unveiled sweeping consumer protections that could transform how you travel — from banning hidden hotel fees to compensating you for flight delays.
But a catch could derail it all: a new administration openly hostile to government regulation.
Some rules are here to stay, and others probably are not. It depends on what travellers decide to do next.
These consumer protections could stick.
One consumer protection likely to stick is the Federal Trade Commission’s (FTC) new junk fee rule, which eliminates mandatory hotel resort fees. Hotels must clearly and conspicuously disclose the total price, including all mandatory extras, whenever they display or advertise a price for short-term lodging.
What’s so significant about that? Before this rule, hotels could show any mandatory fees at the end of the transaction, by which time many consumers had already made up their minds about the purchase.
Imagine booking a Las Vegas hotel room advertised at $99, only to discover at checkout that mandatory resort fees for the pool, gym, and wifi push your nightly rate to $150. Under the new FTC rule, the $150 total must be shown upfront, and no more surprise fees will be buried in the fine print at the end.
It’s likely to survive because it’s a bipartisan rule. (Even the new FTC commissioner hinted that he would support the new junk fee ban.)
Another keeper: The Department of Transportation’s expanded protections for airline passengers with disabilities. Key provisions include requirements for safe and dignified assistance, enhanced training for airline staff who assist passengers with disabilities and handle wheelchairs, and prompt assistance with boarding and airport connections. This rule faced no significant opposition from airlines and is scheduled to go into effect in mid-January.
However, not all consumer protections will be available.
These new rules may not make it.
The Consumer Financial Protection Bureau (CFPB) issued a policy statement that’s good news for loyalty program members. It declares that travel rewards programs reducing the overall value of points already earned or purchased by consumers may be illegal.
In other words, if you earn miles through your credit card, and the credit card devalues those miles by requiring more points for an award ticket, that could violate the law.
Picture this: You’ve spent two years charging everything to your airline credit card, carefully accumulating 100,000 miles for that dream trip to Paris. Then suddenly, without warning, the airline doubles the miles needed for that route from 100,000 to 200,000. Under the CFPB’s new stance, such bait-and-switch tactics could be banned.
Unfortunately, the CFPB itself may not make it through the next presidential administration, at least in its current form. Plans are reportedly underway to curb the bureau’s regulatory reach. And even though loyalty program members are endlessly frustrated by the devaluation of their awards, no one is likely to stop moving the goalposts anytime soon.
Another one that’s on the endangered list is a compensation rule proposed by the Department of Transportation. It would require airlines to offer passengers cash compensation and rebook them on the next available flight. In addition, they would cover meals, overnight lodging, and related transportation expenses when a disruption is caused by the airline. For example, passengers would get at least $200 in compensation for an airline-caused flight delay of a minimum of three hours. The rule would follow similar laws in Canada, Brazil, the European Union, and the United Kingdom.
However, this proposed rule relies on the next administration to see it through. And that might not happen. The incoming DOT secretary is a former TV host and professional lumberjack who reportedly takes a dim view of regulation. As a congressman, he had a strong record of voting against consumer protections. The rule will probably have to wait another four years.
So now what?
As a consumer advocate with a special focus on travel, I’ve learned that the wheels of government turn slowly and sometimes not at all.
But while Washington’s political winds may shift, travellers like you aren’t powerless. Your engagement matters — whether through public comments on proposed rules, communications with elected officials, or support for consumer advocacy organizations.
The future of travel consumer protections isn’t just being written in government offices. It’s being influenced and shaped by every traveller who speaks up for their rights.
Written by: Christopher Elliott
BIO:
Christopher Elliott is an author, consumer advocate, and journalist. He founded Elliott Advocacy, a nonprofit organization that helps solve consumer problems. He publishes Elliott Confidential, a travel newsletter, and the Elliott Report, a news site about customer service. If you need help with a consumer problem, you can reach him here or email him at chris@elliott.org.
