The Travel Technology Association is raising concerns about state legislation that targets algorithmic and AI-driven pricing.
In a statement, the association points out that lawmakers in States across the U.S. are rapidly advancing a new wave of legislation aimed at restricting algorithmic and AI‑driven pricing – including what many are calling “price surveillance” bills.
Since early 2025, the association said that over a dozen states have introduced proposals that would limit or even prohibit the use of consumer search data in pricing systems.
These efforts follow heightened federal scrutiny of “surveillance pricing” and growing political momentum to regulate dynamic pricing across sectors, the statement said.
With travel among the industries most dependent on real‑time pricing tools, the Travel Technology Association is urging policymakers to understand the consequences before these bills reshape how flights, hotels, and other perishable travel services are priced.
Laura Chadwick, President & CEO of the Travel Technology Association, said that these new proposals could undermine dynamic pricing for flights and hotels, raising operating costs and ultimately increasing prices for travellers.
Chadwick made it clear that: “State lawmakers are moving quickly on a new wave of so called ‘price surveillance’ bills, and the travel industry should be paying close attention.”
And she continued: “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,” Chadwick 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. 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. Higher operating costs for the travel industry may likely result in higher prices for travellers.”
Chadwick said that: “What’s equally concerning is the legal uncertainty created by broad, conflicting state level rules. Companies operating across multiple states could face incompatible compliance obligations, making it harder to innovate and serve travelers effectively.”
And she concluded: “Travel Tech is tracking these proposals closely and working to ensure policymakers understand the real-world consequences before lasting damage is done to the travel ecosystem. 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.”
Go to www.TravelTech.org for more.
