Hi Pete,
if by road trip you mean in your own vehicle (other than pushbike), then you will need a fixed date of arrival and departure (off a Med ferry or at the Tunisian border) so that your escort can meet you there. One or two have managed over the years (pre Arab Spring) to get away, but it seems a matter of luck and maybe nationality.
I imagine your itinerary will also be dependant on where you're allowed to go unescorted (not down south, whatever your nat) and where you'd be advised not to go (a foreign-plated vehicle in parts of the Kabylie in the northeast may not be a good idea).
From your hotel booking questions it sounds like you might be hoping to stay up north and dodge the agency-invite requirements (to get the visa) with the mandatory escort rule (once there). Not sure you will get away with it, otherwise we'd all be trying it to save €50-100/day.
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Is it necessary to book all hotels or ok to start with a couple and leave the rest?
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Where that works, I would say the latter.
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Is it easy enough to make phony hotel bookings purely for the purposes of obtaining the visa?
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I rarely hear of it working these days, despite this seemingly simple requirement being stated on some consulate websites.
I also think it depends on
where yoiu apply for your visa (the consulate in your home country).
If you are a Brit arriving with a vehicle and apply with just a hotel booking or two, I dont think the guys at Hyde Park Gate will go for it. They will say you need an invite from an agency (or some other official body in Alg - usually for business travel). That invite is effectiively a 'Certificate de Hebergement' (CdH) which is the same as a hotel booking. Formerly a fax was sufficient, now some ask for originals sent by DHL from Alg - more expense.
But of course you won't get the agency CdH without their escort - or it's extremely unlikely - as it's said they are responsible for you in Algeria.
Other consulates will have different regs - some will 'slow track' your app until it's just too late, while for example I believe a Portugal app was easy for one guy here who rode his moto unguided (north of the 'escort line' - more or less In Salah parallel).
One way might be to book a few days tour with an agency, and then try and split to do your own thing (while staying up north).
If you
aren't travelling in your own vehicle I get the feeling all the above might be easier to pull off, although the last few times I arrived at Alg airport they ask me where is my guide/who is my agency? I always have one of course; we meet up in Tam or wherever after a domestic flight, but on other occasions I could have slipped out of the airport, especially if you look 'businessman-like'. Getting the visa is the key.
For a cancellable hotel booking you might try online with the Mercure at Algiers airport (from about €80? part of Accor group, very few of those in Alg), but I dont know if their printed email conf will wash as a CdH at the Brit consulate. Nothing to lose I suppose as you can cancel it.
There aren't many countries in the world (3?) which make getting a visa for unescorted independent vehicle travel as difficult as Alg, but once in a while people manage. I think a lot depends on the consulate and the state of relations with them and the host country.
fyi, currently only overland access seems to be Tunisia. Maroc long closed, Libya the same (for foreign tourists), north Niger currently closed for tourists, same with north Mali of course and Mori too.
Ch