US EditionAirfare by algorithm: Delta leans into AI pricing — but is it a good thing?
LOS ANGELES INTERNATIONAL AIRPORT (LAX) AND CHICAGO O’HARE INTERNATIONAL AIRPORT (ORD), JUL 17 – Delta plans to increase AI-driven dynamic pricing from 3% to 20% of tickets by 2025 to maximize revenue based on individual passenger willingness to pay, CEO said.
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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…
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 …
Artificial intelligence has proven its usefulness in all kinds of situations both being used as an external tool and implemented within a device or program. As humans we cannot compete against AI in terms of speed and productivity, so in the end more and more people and companies end up falling and using it. So it has happened that it is now used even in airlines like Delta Air Lines, because this has declared that it is very happy to use AI to …
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