Airline Delta is using generative AI to set prices for flights in the US. But how effective is this new tool?
Some airlines are worried that AI-powered price setting could lead to more expensive flights, but others claim it will boost sales and customer satisfaction.
Delta claims its AI system recommends price adjustments based on aggregate purchasing data and demand forecasting, which benefits both customers and businesses.
But not everyone is convinced. Dynamic pricing has long been a part of the travel industry, but some travelers have had frustrating experiences tracking prices that can change rapidly.
Experts warn that AI-powered dynamic pricing could exacerbate issues with transparency and fairness in the market.
Travelers may struggle to track price changes or get the best deals, especially if they’re not tech-savvy.
However, companies like Hertz are using AI to improve customer experience by providing more transparent and accurate car inspections.
Airbnb is also using AI to detect potential party bookings, reducing reported incidents of damage and disruption.
As travelers increasingly rely on AI-powered tools for trip planning, there’s a need for better data sets and understanding the limitations of these systems.
Ultimately, AI has the potential to improve the travel experience by connecting customers with more suitable options. But its impact will depend on how well companies balance efficiency with customer satisfaction.
Source: https://www.businessinsider.com/planning-vacation-nightmare-then-came-ai-plane-pricing-airbnb-2025-10