Hotels Gain Distribution Power While Algorithmic Pricing Stirs Travel Industry Debate

Regulatory changes, advances in hotel technology and a renewed focus on direct bookings are shifting the balance of power in the global hotel sector. Hotels are now able to manage distribution more flexibly, reducing reliance on online travel agencies (OTAs) and strengthening direct customer relationships.

At the same time, travel agents are observing the rise of algorithmic pricing on direct booking channels. Dynamic, personalized fares promoted through the airline industry's New Distribution Capability (NDC) are being questioned as advanced pricing algorithms may inflate fares based on search behavior. Industry voices, including Rachael Penaluna of Sure Maritime Travel and Kirby Gordon of FlySafair, warn that such practices could undermine transparency and competition. Regulators in the United States, United Kingdom and Europe are beginning to scrutinise these developments, while South African airlines have yet to adopt AI‑driven pricing models.