California Imposes ‘Honest Pricing Law,’ Impacting Travel Companies in the State

Beginning July 1, businesses from hotels to restaurants to tour operators and cruise lines operating within the state of California are required to display the cost of what a customer is purchasing with no hidden fees due to a new law called the “Honest Pricing Law.” 

The “Honest Pricing Law,” SB 478, is a price transparency bill that requires that Californians see the price they pay when purchasing goods, services and experiences. The bill excludes state taxes, such as sales tax, as well as shipping costs for goods.  

Within the travel industry, this means that prices for things like Airbnbs and other lodgings, cruise fares and even tours in California will display a fair, transparent price to customers without adding on extra hidden fees, a problem that has gained national attention over recent years. 

Companies operating in California were notified of the bill long before its July 1 activity date. Royal Caribbean and Celebrity both stated in mid-May that they were working to change their advertisements and price displays to include all taxes, port charges and fees in their total pricing — for their entire business, not just the part operating in California. 

Other cruise lines, such as Carnival Corporation’s Carnival Cruise Line, Princess Cruises and Holland America Line, are also implementing the ruling throughout their entire business. 

While advertised rates will be higher, overall a traveler will not be paying more for their cruise. They’ll just see the added fees and port charges they were always required to pay, now lumped into the main price.

“Our price transparency law is about clear and honest communication with consumers, so consumers can make the financial choices that are best for them and their families,” said California’s Attorney General Rob Bonta in a statement on the new bill. “This new guidance provides information for businesses across California to ensure that clear answers are available, particularly for small businesses. The law is simple: the price you see is the price you pay.”

Yet it isn’t just cruise lines that are being impacted by this new ruling: all aspects of the travel industry in California are now obliged to comply with the rule. 

The new law comes into effect in California just after the U.S. House of Representatives passed the federal No Hidden FEES Act, which is a similar rule that would require all lodging businesses of any kind to display fair pricing and a disclosure of all fees nationwide. The bill will now be moved into the Senate for approval or rejection. 

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

Topics From This Article to Explore