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Delta plans to use AI in ticket pricing draws fire from US lawmakers
Delta plans to use AI in ticket pricing draws fire from US lawmakers

Time of India

time12 hours ago

  • Business
  • Time of India

Delta plans to use AI in ticket pricing draws fire from US lawmakers

Three Democratic senators have pressed Delta Air Lines CEO Ed Bastian to answer questions about the airline's planned use of artificial intelligence to set ticket prices, raising concerns about the impact on travelers. "Delta's current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer's personal 'pain point' at a time when American families are already struggling with rising costs," Senators Ruben Gallego, Mark Warner and Richard Blumenthal wrote in a letter dated Monday and made public on Tuesday. Explore courses from Top Institutes in Please select course: Select a Course Category MBA Data Analytics healthcare CXO MCA Product Management Management Others Operations Management Degree Digital Marketing Leadership Public Policy Project Management Healthcare Data Science others Data Science Finance Design Thinking Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details The senators cited recent comments from Delta that the airline plans to deploy AI-based revenue management technology across 20% of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. They said a Delta executive had earlier told investors the technology is capable of setting fares based on a prediction of "the amount people are willing to pay for the premium products related to the base fares." The airline said in a statement: "There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal information or otherwise." Live Events Delta added that dynamic pricing has been used for more than three decades, in which pricing fluctuates based on a variety of factors like overall customer demand but not a specific consumer's personal information. Delta said AI technology for dynamic pricing is being tested to eliminate manual processes while accelerating analysis and adjustments and it emphasized all customers see the same exact fares and offers in all retail channels. Delta said it was testing AI for use in forecasting demand for specific routes and flights, adapting to market conditions in real-time, factoring thousands of variables simultaneously and learning from each pricing decision to improve future outcomes. In January, Blumenthal along with Senators Maggie Hassan and Josh Hawley asked Frontier Airlines and Spirit Airlines to disclose whether they were manipulating seat fees by using customers' personal information to charge different fees to passengers on the same flight. The senators said the airlines were apparently "using customers' personal information to charge different seat fees to passengers on the same flight" despite having the same fare. Frontier and Spirit did not immediately respond to requests for comment on their current practices on Tuesday.

Delta plans to use AI in ticket pricing draws fire from U.S. lawmakers
Delta plans to use AI in ticket pricing draws fire from U.S. lawmakers

CNBC

time14 hours ago

  • Business
  • CNBC

Delta plans to use AI in ticket pricing draws fire from U.S. lawmakers

Three Democratic senators have pressed Delta Air Lines Ed Bastian to answer questions about the airline's planned use of artificial intelligence to set ticket prices, raising concerns about the impact on travelers. "Delta's current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer's personal 'pain point' at a time when American families are already struggling with rising costs," Senators Ruben Gallego, Mark Warner and Richard Blumenthal wrote in a letter dated Monday and made public on Tuesday. The senators cited recent comments from Delta that the airline plans to deploy AI-based revenue management technology across 20% of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. They said a Delta executive had earlier told investors the technology is capable of setting fares based on a prediction of "the amount people are willing to pay for the premium products related to the base fares." The airline said in a statement: "There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal information or otherwise." Delta added that dynamic pricing has been used for more than three decades, in which pricing fluctuates based on a variety of factors like overall customer demand but not a specific consumer's personal information. Delta said AI technology for dynamic pricing is being tested to eliminate manual processes while accelerating analysis and adjustments and it emphasized all customers see the same exact fares and offers in all retail channels. Delta said it was testing AI for use in forecasting demand for specific routes and flights, adapting to market conditions in real-time, factoring thousands of variables simultaneously and learning from each pricing decision to improve future outcomes. In January, Blumenthal along with Senators Maggie Hassan and Josh Hawley asked Frontier Airlines ULCC.O and Spirit Airlines to disclose whether they were manipulating seat fees by using customers' personal information to charge different fees to passengers on the same flight. The senators said the airlines were apparently "using customers' personal information to charge different seat fees to passengers on the same flight" despite having the same fare. Frontier and Spirit did not immediately respond to requests for comment on their current practices on Tuesday.

Delta plans to use AI in ticket pricing draws fire from US lawmakers
Delta plans to use AI in ticket pricing draws fire from US lawmakers

Straits Times

time14 hours ago

  • Business
  • Straits Times

Delta plans to use AI in ticket pricing draws fire from US lawmakers

Delta said AI technology for dynamic pricing is being tested to eliminate manual processes while accelerating analysis and adjustments. WASHINGTON - Three Democratic senators have pressed Delta Air Lines CEO Ed Bastian to answer questions about the airline's planned use of artificial intelligence to set ticket prices, raising concerns about the impact on travelers. 'Delta's current and planned individualised pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer's personal 'pain point' at a time when American families are already struggling with rising costs,' Senators Ruben Gallego, Mark Warner and Richard Blumenthal wrote in a letter dated Monday and made public on July 22. The senators cited recent comments from Delta that the airline plans to deploy AI-based revenue management technology across 20 per cent of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. They said a Delta executive had earlier told investors the technology is capable of setting fares based on a prediction of 'the amount people are willing to pay for the premium products related to the base fares'. The airline said in a statement: 'There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualised offers based on personal information or otherwise.' Delta added that dynamic pricing has been used for more than three decades, in which pricing fluctuates based on a variety of factors like overall customer demand but not a specific consumer's personal information. Delta said AI technology for dynamic pricing is being tested to eliminate manual processes while accelerating analysis and adjustments and it emphasised all customers see the same exact fares and offers in all retail channels. Top stories Swipe. Select. Stay informed. Business Singapore's digital banks finding their niche in areas like SMEs as they narrow losses in 2024 World Trump says US will charge 19% tariff on goods from Philippines, down from 20% Singapore Two found dead after fire in Toa Payoh flat Singapore 2 foreigners arrested for shop theft at Changi Airport Opinion Most companies onboard wrong – here's how to get it right Life Ozzy Osbourne, Black Sabbath's bat-biting frontman turned reality TV star, dies aged 76 Singapore Singaporeans continue to hold world's most powerful passport in latest ranking Singapore Ports and planes: The 2 Singapore firms helping to keep the world moving Delta said it was testing AI for use in forecasting demand for specific routes and flights, adapting to market conditions in real-time, factoring thousands of variables simultaneously and learning from each pricing decision to improve future outcomes. In January, Mr Blumenthal along with Senators Maggie Hassan and Josh Hawley asked Frontier Airlines and Spirit Airlines to disclose whether they were manipulating seat fees by using customers' personal information to charge different fees to passengers on the same flight. The senators said the airlines were apparently 'using customers' personal information to charge different seat fees to passengers on the same flight' despite having the same fare. Frontier and Spirit did not immediately respond to requests for comment on their current practices on July 22. REUTERS

Delta plans to use AI in ticket pricing draws fire from US lawmakers
Delta plans to use AI in ticket pricing draws fire from US lawmakers

Business Times

time15 hours ago

  • Business
  • Business Times

Delta plans to use AI in ticket pricing draws fire from US lawmakers

[WASHINGTON] Three Democratic senators have pressed Delta Air Lines CEO Ed Bastian to answer questions about the airline's planned use of artificial intelligence to set ticket prices, raising concerns about the impact on travelers. 'Delta's current and planned individualised pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer's personal 'pain point' at a time when American families are already struggling with rising costs,' Senators Ruben Gallego, Mark Warner and Richard Blumenthal wrote in a letter dated on Monday and made public on Tuesday. The senators cited recent comments from Delta that the airline plans to deploy AI-based revenue management technology across 20 per cent of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. They said a Delta executive had earlier told investors the technology is capable of setting fares based on a prediction of 'the amount people are willing to pay for the premium products related to the base fares.' The airline said in a statement: 'There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualised offers based on personal information or otherwise.' Delta added that dynamic pricing has been used for more than three decades, in which pricing fluctuates based on a variety of factors like overall customer demand but not a specific consumer's personal information. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Delta said AI technology for dynamic pricing is being tested to eliminate manual processes while accelerating analysis and adjustments and it emphasised all customers see the same exact fares and offers in all retail channels. Delta said it was testing AI for use in forecasting demand for specific routes and flights, adapting to market conditions in real-time, factoring thousands of variables simultaneously and learning from each pricing decision to improve future outcomes. In January, Blumenthal along with Senators Maggie Hassan and Josh Hawley asked Frontier Airlines and Spirit Airlines to disclose whether they were manipulating seat fees by using customers' personal information to charge different fees to passengers on the same flight. The senators said the airlines were apparently 'using customers' personal information to charge different seat fees to passengers on the same flight' despite having the same fare. Frontier and Spirit did not immediately respond to requests for comment on their current practices on Tuesday. REUTERS

Senators demand answers about Delta's new AI-driven pricing plan
Senators demand answers about Delta's new AI-driven pricing plan

Business Insider

time20 hours ago

  • Business
  • Business Insider

Senators demand answers about Delta's new AI-driven pricing plan

Delta Air Lines wants to use AI to set your ticket price — and it isn't flying with some senators. Sen. Ruben Gallego of Arizona sent a letter to the airline on Monday asking for the company to clarify what data it's using to determine prices and the scope of its planned AI rollout. "Delta's current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer's personal 'pain point' at a time when American families are already struggling with rising costs," reads the letter, which was also signed by Sens. Mark Warner of Virginia and Richard Blumenthal of Connecticut. The letter comes after Delta president Glen Hauenstein told investors earlier this month that the company aimed to expand AI pricing to 20% of its network by the end of the year. He said the technology is currently used on about 3% of its domestic network. Delta first announced the AI pricing during an investor event in November, calling it a "full reengineering of how we price and how we will be pricing in the future." "We're in heavy testing phase. We like what we see," Hauenstein said in July. "We like it a lot and we're continuing to roll it out." While airlines have used dynamic pricing for decades — setting fares based on factors like demand, timing, and the website a customer uses — the use of AI for these purposes has drawn concerns about price discrimination. In a statement to Business Insider, a Delta spokesperson said the company would not use personal information for dynamic pricing. "There is no fare product Delta has ever used, is testing, or plans to use that targets customers with individualized offers based on personal information or otherwise," the spokesperson said. The spokesperson said the new tech is "streamlining" the dynamic pricing model "that's been used in the global industry for decades." Delta is working with Fetcherr, an AI firm whose clients include other airlines like Virgin Atlantic and WestJet, to power the pricing changes. Still, Gallego has expressed concerns that the AI strategy could allow Delta to "squeeze you for every penny," he wrote on X in July. "This isn't fair pricing or competitive pricing. It's predatory pricing. I won't let them get away with this," he wrote. This isn't the first time Delta has been in hot water over pricing recently. Earlier this year, the company was one of several major airlines to introduce new fares that hit solo travelers with higher prices. Delta and United withdrew those fares after public blowback.

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