As state lawmakers across the country continue to introduce an influx of “price surveillance” bills designed to stanch and regulate AI-driven and algorithmic pricing, the Travel Technology Association (Travel Tech) is urging policymakers to evaluate how such legislation could raise operating costs for travel industry companies and prices for travelers.
In all, nearly 20 states have introduced proposals that would restrict or ban the use of algorithms and AI pricing when consumer search information is involved, Travel Tech said.
“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,” said Travel Tech President and CEO Laura Chadwick.
“The result would be higher operational costs, less efficient revenue management, and a shift toward blunt, one-size-fits-all pricing that ultimately harms consumers,” she added, noting that "higher operating costs for the travel industry,” which very well could result in price hikes for consumers.
“What’s equally concerning is the legal uncertainty created by broad, conflicting state-level rules,” Chadwick said. “Companies operating across multiple states could face incompatible compliance obligations, making it harder to innovate and serve travelers effectively.”
Travel Tech, which advocates public policy promoting marketplace transparency and competition, said it is closely tracking the proposals and working to ensure policymakers understand their impact on the travel industry and the traveling public.
“We urge lawmakers to engage with industry experts early so that consumer protection goals can be met without sacrificing the tools that keep travel affordable, efficient and competitive,” Chadwick said.
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