This study explores the relationships between big data-driven price discrimination, customer loyalty, information literacy, and customer citizenship behavior in China’s online travel sector, focusing on Ctrip OTA users. It begins by explaining the formation of big data-based price discrimination from an algorithmic perspective and proposes seven hypotheses based on literature and theoretical analysis. Data was collected via surveys from Ctrip users, and structural equation modeling was conducted using SPSS and Smart PLS 4.0. The findings reveal that big data-driven price discrimination negatively impacts customer behavior, significantly reducing customer loyalty and citizenship behavior, with loyalty acting as a mediator. Higher information literacy intensifies the negative effects on loyalty and behavior. Thus, companies should be aware of the potential risks of data misuse, protect consumer rights, and focus on cultivating loyalty to foster positive customer behavior, ensuring long-term success and development.