Displaying Prices of Hotels and Guest Houses

If you offer accommodation as part of a business you must meet legal requirements.

Displaying A Price List
You must display a price list in the reception area or at the entrance to your accommodation, unless :

• you have less than four bedrooms and you have less than eight beds. 
• accommodation is provided ‘ancillary to business’ such as in nursing homes or university halls of residence 
• you normally let rooms to the same person for 21 nights or more such as in old people’s homes or long-term guest houses or 
• all your customers book in advance.   

What The Sign Should Say
The notice you display should include :

• the price of a bedroom for one person e.g. 
• £25 per night if all the rooms are the same price, or £20-30 per night if there is a range of prices
• the price of a bedroom for two people 
• the price of a bed in any other type of room.   

All prices should include VAT and any compulsory service charges.

You must make it clear if meals are included in the price e.g. single bedroom £30 per night including breakfast.

The price list must be in a prominent position and be easy to read.

Overcharging
If you advertise your prices to the public, for example: on a sign outside your hotel or guest-house in a brochure or local-authority tourist guide you should be careful to include VAT and other non-optional extra charges in your advertised prices and stick to them when you present your bills to your customers. If you charge more than your advertised price, you could be guilty of giving a misleading price indication.

This is a criminal offence. It could also be breach of contract.

If there is a chance that your prices could vary during the lifetime of the advertisement, you should make this clear, e.g. different prices for high/low season.

Credit Card Surcharges
It is legal to charge customers a surcharge for using a credit card to settle their bill. If you do this you must make the fact clearly known by:

displaying a notice near each public door and at your reception area telling customers on the phone before they commit themselves and book including the information in your advertisements.

If your normal prices are in cash, the information will be, for example:

Credit Cards: surcharge 2% or Credit Cards: £1 surcharge

If your prices are normally shown as credit card prices, this information should be clear. You would then probably show a discount for cash. e.g.:

Double Room £44.50 per night (credit cards) 4% discount for cash.

Remember
Our officers could call at any time you are trading to check that you are complying. They also monitor advertisements and deal with complaints from the public. You could be prosecuted if you break these laws and cannot show that you have taken reasonable precautions to prevent it happening.

This leaflet has been prepared for the guidance of traders. It is necessarily worded in a general way and cannot cover every circumstance. It is not an authoritative interpretation of the law.

For further advice contact:-

Warrington Borough Council
Community Services Directorate
Trading Standards
Palmyra House
Palmyra Sq Nth
Warrington
WA1 1JN

Tel No: 01925 442678 
or Duty Officer, 01925 442658