Drip Pricing

Drip pricing is the practice of advertising a low headline price and revealing mandatory extra charges only later in the booking flow, so the final total is higher than the price that attracted the guest. In hospitality it commonly involves resort fees, cleaning fees, service charges and facility fees that are not included in the initial rate.

Example

A hotel is listed at €120 per night. At checkout, a €25 resort fee and a €8 service charge are added, making the real price €153, 27.5% above the advertised rate. A competitor showing a clear €145 all-in price looked more expensive at first but was cheaper.

Regulatory context

Regulators have targeted drip pricing as misleading. In the EU, consumer-protection rules and the Digital Services Act framework require total prices, including unavoidable fees, to be shown up front. In the US, the Federal Trade Commission's rule on unfair or deceptive fees requires all-in pricing for short-term lodging. Fines and enforcement actions have followed for hotels and platforms.

Why it matters

Drip pricing distorts price comparison on OTAs and metasearch, damages guest trust and increases funnel drop-off late in checkout. Properties that show total prices upfront gain transparency, fewer complaints and better reviews, though they must monitor competitors that still hide fees. Revenue teams should bake mandatory fees into the base rate or present them clearly, and verify that channel-manager feeds pass total prices correctly to avoid parity disputes.

Related

See DSA, Tourist Tax (City Tax), Ancillary Revenue, Conversion Rate and Metasearch.