- Travel Tech asked FTC for pricing clarity.
- Loyalty programs outside proposed policy.
- It targets personal-data pricing practices.
THE TRAVEL TECH Association asked the U.S. Federal Trade Commission to clarify its personalized pricing policy. It supports limits on personal-data pricing but wants normal travel pricing excluded.
The FTC’s proposed policy targets companies that use personal data to estimate what a consumer may be willing to pay and set a price based on that information. Travel Tech says this should be separate from normal dynamic pricing, which uses factors such as market conditions, inventory and booking timing, the association said in a statement.
“Consumers benefit from a travel marketplace that is transparent, competitive, and innovative,” said Laura Chadwick, Travel Tech president and CEO. “As policymakers examine personalized pricing, it is important to distinguish potentially harmful uses of personal data from tools and practices that help travelers compare options, access discounts and find the best value.”
Dynamic pricing needs clear limits
Travel Tech says pricing based on supply, demand, inventory, seasonality and booking timing should remain outside the policy. Hotel rooms are perishable inventory, so prices can change as hotels manage available rooms and market conditions.
The association also wants loyalty programs, member discounts, negotiated corporate rates and promotional offers excluded. These offers are based on set eligibility rules, rather than an assessment of a consumer’s personal information or willingness to pay.
Travel search details should receive similar treatment. Destination, travel dates, party size, room type and fare or service class describe the product a consumer wants to book, rather than personal details about the traveler.
The filing also addresses travel management companies. TMCs use traveler information to apply company travel policies, negotiated rates and duty-of-care requirements. This is part of the service they provide and not an attempt to determine what a traveler is willing to pay.
Hotels face pricing uncertainty
The issue matters to hotels and online travel agencies because changing rates is a normal part of revenue management. A hotel may charge different rates for the same room based on booking timing, remaining inventory, distribution channel or loyalty status.
Travel Tech says these differences do not necessarily amount to personalized pricing. Different rates can result from market conditions or predefined offers available to certain customers.
The association is concerned that a broad FTC policy could create uncertainty around these common practices. It supports disclosure when personal data is used to set an individual price but does not want disclosure requirements to apply simply because an algorithm is used or consumers receive different offers.
Travel Tech supports disclosure when personal data is used to determine an individual price. It says disclosure should not be required for ordinary pricing based on inventory, supply and demand, or predefined offers.
Separately, Hilton’s 2027 Trends Report examines how changing traveler preferences could shape hotel stays and development.
Source: www.asianhospitality.com
