Delta Airlines is reportedly expanding its use of AI-driven dynamic ticket pricing—a move that has faced significant pushback online.
Delta President Glen William Hauenstein told reporters earlier this month that the company is ready to move forward with using AI to set fares—a system that already determines 3-percent of the airline’s domestic ticket prices.
And if you were hoping for more time before AI takes over even larger portions of our lives, the reality is—it’s already happening, and there’s no turning back. For Delta, that means ramping up AI integration in ticket pricing from 3-percent to a whopping 20-percent by the end of 2025.
"So, we're in a heavy testing phase," Hauenstein told reporters. "We like what we see. We like it a lot and we're continuing to roll it out. But we're going to take our time and make sure that the rollout is successful, as opposed to trying to rush it and risk that there are unwanted answers in there."
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According to Hauenstein, the company is working in partnership with Fetcherr, an Israel-based tech firm that claims its AI algorithms can “set the perfect price every time,” — though it’s understandable why some might be skeptical.
In a post on dynamic pricing in aviation, Fetcherr describes a major shift happening: “The convergence of AI, machine learning and real-time data processing completely transforms how airlines approach pricing strategy,” the post reads.
“Gone are the days of rigid pricing rules and manual adjustments. Welcome to the era of true dynamic pricing, where artificial intelligence can process millions of data points instantly to set the perfect price every time. Welcome to the modern age of AI dynamic pricing.”
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Eerie? We kind of agree. And as Delta continues down this path, it’s catching the attention of lawmakers who aim to voice their concerns. On Monday, Senators Ruben Gallego, Richard Blumenthal and Mark Warner each sent a letter to Delta demanding more information about the plan, citing concerns over both privacy and market strategy.
And while concerns about data privacy are understandable, Delta responded to questions about its AI pricing expansion with this statement:
“There is no fare product Delta has ever used, is testing, or plans to use that targets customers with individualized offers based on personal information or otherwise. A variety of market forces drive the dynamic pricing model that’s been used in the global industry for decades, with new tech simply streamlining this process. Delta always complies with regulations around pricing and disclosures.”
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