Delta Air Lines is using artificial intelligence to determine domestic flight prices, with the goal of increasing its usage from 3% of its network to 20% by the end of the year. The airline is currently testing a generative AI model provided by Fetcherr, an Israel-based AI tech solutions company.
According to Delta President Glen Hauenstein, the more data the AI has, the better it becomes at predicting prices. However, the technology is still in its early stages and requires careful testing to ensure it meets regulatory requirements.
Some lawmakers have expressed concerns about the potential impact of AI-powered ticket pricing on consumers, citing data privacy concerns and the possibility of bias against certain groups. Delta has responded by stating that it complies with regulations around pricing and disclosures and that its ticket pricing model is based solely on market forces.
Industry experts say that while AI-powered pricing may be a concern for some, it’s also an opportunity for airlines to adapt to changing market conditions and offer personalized deals to customers. As one expert noted, if an airline charges significantly higher prices than competitors, consumers will simply take their business elsewhere.
Delta has partnered with several other global airlines to use Fetcherr’s technology, which aims to empower airlines to maximize profitability while delivering a seamless travel experience. However, the impact of AI-powered pricing on Delta customers remains to be seen, and it will be interesting to see how the airline navigates this new landscape in the coming months.
Source: https://abcnews.go.com/GMA/Travel/delta-ai-ticket-pricing-means-air-travel/story?id=124343088