US EditionHow Delta Is Using AI for Ticket Pricing and What It Means for Air Travel
UNITED STATES, AUG 4 – Delta uses AI to analyze aggregated market data for pricing on 3% of domestic routes, denying personalized fares based on individual customer information, amid ongoing lawmaker scrutiny.
- On Tuesday, Delta Air Lines said it will not use AI to set personalised ticket prices after facing criticism from lawmakers and public scrutiny.
- Last week, Senators Ruben Gallego, Mark Warner and Richard Blumenthal warned AI-driven pricing could 'likely mean fare price increases up to each individual consumer's personal 'pain point',' lawmakers said.
- Delta says its AI tools with Fetcherr support human fare analysts by aggregating market data and forecasting demand, not targeting individuals.
- Last week, Democratic Representatives Greg Casar and Rashida Tlaib introduced legislation to ban AI-based personalized pricing, including airline fare adjustments based on personal data.
- Looking ahead, Delta plans to expand AI-assisted pricing to 20% of routes by year-end, as Delta President Glen Hauenstein said the rollout remains in a 'heavy testing phase' with about 3% currently covered.
14 Articles
14 Articles
Airline Price-Gouging Could Become the New Normal
Led by Delta, many airlines are now working with AI firms to expand the industry’s use of big data for price setting. Using new surveillance techniques, these firms exploit consumer privacy to set “personalized” prices to jack up fares. A Delta Air Lines plane taxis toward a gate between other Delta planes at John F. Kennedy International Airport in New York on July 20, 2009. (Daniel Acker / Bloomberg via Getty Images) After Delta Air Lines face…
Big Data Is Already Jacking Up Your Airline Fares
After Delta Air Lines faced public backlash for expanding its use of artificial intelligence (AI) to set fares for passengers, the airline sent a letter to federal lawmakers on Friday denying that it uses “personalized pricing” to price-gouge consumers.But many airlines, led by Delta, the nation’s largest, are working with AI consulting companies that boast of their “hyper-personalized” price setting. This new airfare apparatus is part of the ai…
Delta denies using AI to set personalized ticket prices
The controversy erupted after Senators Ruben Gallego, Mark Warner, and Richard Blumenthal sent a letter questioning Delta's intentions regarding AI-driven pricing. They argued that such technology could expose travelers to higher fares based on their individual "pain points," especially as household expenses continue to rise nationwide.Read Entire Article
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