Is it Legal for Airlines or Hotels to Use Dynamic Pricing?

Yes, changing prices based on demand is legal, but manipulating algorithms to exploit consumers is not.

While India’s Consumer Protection Act (CPA) 2019 does not prohibit algorithmic "surge pricing," Section 2(47) strictly bars unfair trade practices that exploit market disruptions or information asymmetry.

Airlines and hotels have the contractual autonomy to adjust fares in real time based on seasonal load factors and supply. However, using automated tools to artificially inflate prices during emergency cancellations, natural disasters, or grid failures can draw regulatory action.

The Central Consumer Protection Authority (CCPA) maintains oversight to ensure these automated systems do not cross the line into predatory pricing or coercive market manipulation.