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The UK drip pricing ban: what it means for hotels and AI agents

UKUpdated By Akkrev

Since 6 April 2025, UK hotels must include mandatory fees and taxes in the headline price. AI agents compare those totals, so hidden fees cost bookings.

Since 6 April 2025, UK businesses must show the total price, including all mandatory fees, taxes and charges, in the headline price. For hotels, that means no more “£99 a night” that becomes £125 at checkout because of a compulsory cleaning or service fee. AI agents make this rule bite harder, because they compare totals across sites instantly.

What the rule requires

Under the Digital Markets, Competition and Consumers Act (DMCC Act):

  • Every price shown to consumers must include mandatory fees, taxes and charges.
  • Optional extras can be shown separately.
  • If a charge can’t be calculated in advance, the business must explain how it will be calculated, as prominently as the headline price.
  • There’s no exception for limited space.

Cleaning charges on short-term rentals are a commonly cited example of a mandatory fee that must be included. The Competition and Markets Authority (CMA) can enforce directly and fine up to the higher of £300,000 or 10% of global turnover, though it has said its first focus is helping businesses comply.

Where AI agents come in

When a guest asks an agent to “book a hotel in York for two nights under £250 total”, the agent has to know the total. If your headline price excludes a mandatory fee, two things can go wrong:

  1. The agent includes you on a price that isn’t real, and the guest discovers the difference at payment. Some abandon.
  2. A careful agent finds the fee, recalculates, and books a competitor whose headline was honest.

Either way, the hotel with hidden fees loses. And because agents keep records of what they saw, a mismatch between the advertised and final price is easy to document.

What counts as mandatory for hotels

  • Compulsory resort, amenity or service charges.
  • Cleaning fees on apartments and holiday lets when every guest pays them.
  • Local levies such as Edinburgh’s visitor levy, for stays from 24 July 2026.

Optional breakfast, parking or late checkout can still be shown as extras, as long as they really are optional.

Questions hoteliers ask about the rules

Do we have to show the price for the guest’s exact dates? The rules are about what’s included in a price when you show one. Showing a “from” price is still possible, as long as it includes mandatory charges.

What about a deposit? A deposit isn’t a fee; it’s part of the price paid early. What matters is that the total the guest will pay is clear.

Where hotels most often get caught out

  • Apartments and holiday lets with a cleaning fee added at checkout.
  • Resort-style charges for spa or leisure access that every guest pays.
  • City hotels adding a compulsory service charge or local levy at the end.
  • Package pages that show a per-person price next to per-room prices.

Why agents make enforcement easier

An agent records what it saw at each step: the advertised price, the total at checkout, and the difference. Guests who feel misled can show that record. Hotels that already show honest totals have nothing to worry about, and get the bonus that agents trust and book them.

What this means for AI recommendations

When every price must include mandatory fees, AI comparisons get fairer. Hotels that show full prices clearly give AI an accurate total to compare.

How to check your site

Book your own hotel as a guest would and note the first price you see and the final price before payment. If they differ for any reason other than an extra you chose, an agent will see the same gap. Our free agent check records it step by step. This article explains the rules in general terms and isn’t legal advice.

Questions

When did the UK drip pricing ban start?

The DMCC Act's price transparency rules took effect on 6 April 2025.

What can the CMA do if a hotel breaks the rules?

The CMA can direct a business to comply or compensate customers, and fine up to the higher of £300,000 or 10% of global turnover.

Are optional extras covered?

No. Genuinely optional extras, such as breakfast on a room-only rate or a late checkout, can be added later. Mandatory charges must be in the headline price.

Sources

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