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Airfare by algorithm: Delta leans into AI pricing — but is it a good thing?
UNITED STATES, JUL 17 – Delta plans to use AI pricing on 20% of flights by year-end after pilot tests raised revenue per seat by nearly 9%, aiming to maximize profits through personalized fares.
- Delta plans to price 20% of its flights individually using AI by the year's end, an increase from 3%.
- Senator Ruben Gallego criticized Delta's AI pricing approach as 'predatory pricing', suggesting it exploits customers.
- Experts warn that the dynamic pricing may create trust issues among passengers, who could feel unfairly treated if charged differently for the same services.
- Industry leaders emphasize the importance of transparency in AI pricing to maintain customer trust and improve experiences.
18 Articles
18 Articles
According to Fortune magazine reports, the airline Delta Air Lines initiated a profound transformation in its tariff model.The goal is to abandon fixed prices and replace them with a system that uses artificial intelligence (AI) to determine how much each passenger is willing to pay.This change seeks to maximize profits by customizing prices based on the profile of each user. Glen Hauenstein, president of the company, explained to investors that…
Delta Announces New System Where AI Makes Up the Price for Your Ticket on the Spot
In the latest sign frivolous and irritating use of AI, US airline Delta is looking to harness the tech to set prices for each individual customer, instead of just listing what they actually cost. As Fortune reports, the airline is looking to push the boundaries of how much passengers are willing to shell out for a plane ticket. By the end of this year, Delta hopes to price 20 percent of its tickets individually, using AI. The practice has alread…
Delta Turns to AI to Tailor Ticket Prices—But Critics Say It’s Going Too Far
MIAMI – Delta Air Lines is rolling out a new pricing model that uses artificial intelligence to set fares based on what it thinks each traveler is most likely to pay. After experimenting with the system on a small scale, the airline now plans to make it a much larger part of its pricing strategy […]
Airfare by algorithm: Delta leans into AI pricing — but is it a good thing?
(NewsNation) — What you pay for a Delta Air Lines ticket may soon depend less on timing and more on what an algorithm thinks you're willing to spend. About 3% of Delta's domestic ticket prices are now determined by artificial intelligence, with plans to raise that to 20% by year's end, President Glen Hauenstein said on an earnings call last week. During an Investor Day presentation in November, Hauenstein described the new AI pricing technology …
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