How to display room prices legally

To comply with UK consumer law, the first price a guest sees for a room must be the final price they will pay. This total price must include VAT and any other non-optional fees, preventing any surprise costs later in the booking process. Getting this right is a legal requirement that also builds crucial trust with your customers.

What does the 'total price' include?

The principle is simple: no surprises. The price you advertise must be the price a customer can actually pay to secure the room. This means it must incorporate:

• The basic room rate
• Value Added Tax (VAT) at the current rate for hospitality.
• Any mandatory service charges or 'resort fees'.
• Any other non-optional costs, such as a compulsory cleaning fee that every guest has to pay.

Where you must display the total price

This rule applies everywhere a potential guest might see your prices. You need to be consistent across all channels, including:

• Your own website: From the first search results page to the final booking screen.
• Online Travel Agents (OTAs): Ensure your listings on platforms like Booking.com, Expedia, or Airbnb are configured to show the total price.
• Physical price lists: Any tariff boards displayed in your reception or brochures must also show the final, inclusive price.

Handling optional extras

You can, of course, still sell optional add-ons. The key is that they are genuinely optional, and the customer can complete their booking without selecting them. These should be displayed separately and clearly marked as extras.

For example, a charge for car parking, breakfast, or a pet-friendly room can be listed as an optional add-on. However, a mandatory 'city tax' or a non-optional 'service fee' must be included in the headline room price.

Why this matters

Beyond the legal requirement, transparent pricing is good for business. Customers are more likely to abandon a booking if they see unexpected fees added at the checkout. Showing the full price upfront builds trust, improves the customer experience, and can lead to higher conversion rates and better reviews.