U.S. state lawmakers are rapidly advancing a new wave of legislation aimed at restricting algorithmic and AI‑driven pricing – including what many are calling “price surveillance” bills – which threaten dynamic pricing for flights and hotels.
And while many in the travel industry would welcome such restraints, critics claim price surveillance would raise operating costs and ultimately increase prices for travellers.
More than a dozen states have introduced proposals that would limit or even prohibit the use of consumer search data in pricing systems – and with travel among the industries most dependent on real‑time pricing tools, the Travel Technology Association (Travel Tech) is urging policymakers to understand the consequences before these bills reshape how flights, hotels, and other perishable travel services are priced.
“State lawmakers are moving quickly on a new wave of so called ‘price surveillance’ bills, and the travel industry should be paying close attention,” says Travel Tech President & CEO Laura Chadwick. “Nearly 20 states have already introduced proposals that would restrict or even ban the use of algorithms and AI in pricing when consumer search information is involved.
“These measures may be well intentioned, but their impact would be severe. Dynamic pricing is essential for managing perishable travel services – from flights to hotel rooms – and these bills would undermine the industry’s ability to align prices with real time market conditions.
“The result,” she maintains, “would be higher operational costs, less efficient revenue management, and a shift toward blunt, one-size-fits-all pricing that ultimately harms consumers. Higher operating costs for the travel industry may likely result in higher prices for travellers.”
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