Delta Air Lines is employing AI to adjust airfare prices based on predicted willingness to pay. The current model covers 3pc of fares with aspirations to extend to 20pc by year-end in partnership with Fetcherr.
Ailrines have been using a version of artificial intelligence for some time now. Ryanair can price their seats higher when they are put into the system sleven months in advance than they are with six weeks to go. This works on the basis that once the wedding guests have bouthg the seats, the job of the computer bots is to fil the aircraft.
Critics are concerned about fairness and ethics, labelling the approach as “surveillance pricing”. Consumer groups are calling for increased transparency and potential regulations in response to this pricing model.
Competitors may adopt similar strategies if Delta’s model proves profitable without facing regulatory challenges.
