With major ramifications for passengers, airlines are increasingly using artificial intelligence to determine ticket prices. Now, simple actions like allowing browser cookies, accepting website agreements, or enrolling into loyalty programs can influence a flight’s price. The move to AI-driven pricing brings up significant challenges of equity, privacy, and the possibility of increased travel costs.
Recently, Delta Air Lines revealed that the Israeli startup Fetcherr’s AI technology is used to determine about 3% of its domestic ticket rates. To generate customised offers, this system analyses a number of variables, such as past purchasing patterns, user lifetime value, and the current context of each booking query. The airline plans to raise AI-based pricing to 20% of tickets by the end of 2025, according to Delta President Glen Hauenstein, who also emphasised the favourable revenue impact.
Regulatory issues
US lawmakers have questioned the use of AI pricing models, fearing that it may result in increased fares and unfair disadvantages for some customers. The public’s respons
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