Delta Air Lines has begun using artificial intelligence (AI) to set ticket prices, with the goal of expanding its use to 20% of domestic flights by the end of the year. The airline’s president, Glen Hauenstein, revealed during a recent earnings call that Delta is currently testing AI for 3% of domestic pricing.
The technology used by Delta has partnered with Israel-based software startup Fetcherr, which utilizes a large language model (LLM) to analyze market behavior and forecast financial trends. Factors such as seat availability, current news, weather conditions, and significant events are among the variables that influence airline flight pricing.
However, consumer groups have expressed concerns about the use of AI in setting ticket prices, with some lawmakers questioning whether airlines will use personalized pricing based on individual data. Fetcherr has stated that its technology does not allow for individualized or personalized pricing and remains committed to transparency and regulatory compliance.
Delta is not the only airline using AI, as it has partnered with several other carriers including Virgin Atlantic, Viva Aerobus, WestJet, and Royal Air Maroc. The company plans to expand Fetcherr’s technology into other industries such as hospitality, insurance, commerce, and capital markets in the future.
Source: https://www.fastcompany.com/91379728/research-reveals-how-delta-and-other-airlines-use-ai-to-set-ticket-prices