What is drip pricing?
Updated By Akkrev
Drip pricing means showing a low headline price and adding mandatory fees later. The UK banned it in April 2025; the US FTC rule covers hotels since May 2025.
Drip pricing is showing a headline price that leaves out charges the customer must pay, then adding them later in the booking. Typical examples in hospitality are compulsory service, resort, destination or cleaning fees.
The rules
- UK: since 6 April 2025, under the Digital Markets, Competition and Consumers Act, headline prices must include all mandatory fees, taxes and charges. See the UK drip pricing ban and AI agents.
- US: since 12 May 2025, the FTC’s fees rule requires hotels and short-term rentals to show the total price, including mandatory fees, up front. Taxes can be shown separately if disclosed before payment. See the FTC junk fee rule and AI agents.
Why agents care
Agents compare totals. A low headline price that grows at checkout either makes the agent quote the wrong total or, once it spots the extra fee, choose a competitor with a clearer one.
Why it matters for AI visibility
Prices that grow at checkout make AI comparisons unfair. Full prices up front help AI quote you accurately.