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Euronews
4 days ago
- Business
- Euronews
Is personalised pricing making your holiday more expensive?
It is common knowledge that air fares fluctuate. But why might it be that after booking your tickets to Disneyland, the flight you were looking at the day before has suddenly shot up in price? The company you were booking could have been using personalised pricing, also known as surveillance pricing. This is where businesses tailor prices to individual customers instead of offering a standard fixed price. They do this by harvesting personal information from data analytics and your online behaviour to learn about your purchase history, location, and demographics. With this profile, they can use artificial intelligence to analyse your search habits, determine what it thinks you might be willing to pay and set the price accordingly. In this case, since you booked your Disneyland tickets first, the airline would know you now need to book flights on specific dates and can slap on a premium. Are airlines using personalised pricing for air fares? There is a difference between dynamic pricing and surveillance pricing. Dynamic pricing adjusts fares based on external factors like demand, timing or competition and is well established in the travel industry. A flight around Christmas, for example, costs more because it is a high-demand period. Surveillance pricing uses your personal data, such as internet browsing habits or location, to set a price just for you. It is not currently clear whether airlines are actually using this kind of pricing or not. All kinds of industries, from finance to online gaming, do employ personalised pricing. So far, the travel sector has not been transparent about adopting the strategy, but experts say the hallmarks are there. Last year, the US consumer watchdog asked eight companies to provide information on how dynamic pricing and surveillance pricing were being used to set airfares in an attempt to find out how widespread this practice is. Recent controversy came after Delta Air Lines announced plans to increase its use of AI to set prices, meaning it can charge customers based on the specific flight they want to take on a particular date. It said that 20 per cent of domestic flights would have their prices set by AI by the end of 2025. The statement was met with accusations of personalised pricing and a backlash from consumers and industry professionals. Delta, in turn, pushed back against the claims, saying the price fluctuations will be based on market factors - a system known as dynamic pricing - rather than consumers' personal data. 'There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualised prices based on personal data,' the company said in a letter to US lawmakers. The AI technology Delta will use has been developed by the start-up Fetcherr, who say it functions by 'streamlining processes already in place at companies and does not allow for individualised or personalised pricing'. Whether or not airlines are actually using surveillance pricing, these recent questions have raised serious concerns about transparency, fairness and the privacy of travellers' personal data. Where is personalised pricing used in the travel industry? Experts suggest the use of personalised pricing also goes beyond individual airlines and airfares. According to marketing company TechTarget, 'Online travel agencies offer different prices for the same flight based on a user's search history or device type.' Sales platform BuzzBoard claims that booking website also uses this strategy to generate personalised offers, destination suggestions, and special deals to customers. 'By analysing a customer's travel preferences, booking history, and search behaviour, hotels can offer targeted promotions and recommendations that are highly relevant to their needs and interests,' it says. How can consumers avoid personalised pricing? While it's not clear whether companies like airlines are employing personalised pricing, it's worth being prepared should it become commonplace in the future. When booking a trip online, start by clearing your cache, Professor Jay L. Zagorsky, who teaches business school students how to set prices, wrote in a recent article for The Conversation. This deletes your search history and cookies, which would otherwise provide algorithms with a wealth of personal information. Many computer pricing algorithms also leverage your location, since it is a good indicator of income. Try disabling location services in your operating system settings. Aktarer Zaman, founder and CEO of online travel agency Skiplagged, suggests using a third-party search engine - one that doesn't use personal data to set prices. 'When doing this, the underlying supplier does not have as much information about consumers as they would if you were searching directly on their site and they're essentially booking in 'incognito mode',' he says. '[For example] Skiplagged allows travellers the best chance of not being profiled by the airlines or other booking sites.'
Yahoo
05-08-2025
- Business
- Yahoo
Delta Air Lines Breaks Silence on Controversial Pricing Change
Earlier this week news broke that Delta Air Lines doubled down on its plans to use an AI system to dynamically set ticket pricing. The airline said it plans to deploy AI-based revenue management technology across 20 percent of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. Delta Air Lines currently uses the platform for 3 percent of its domestic flights. "We like what we see, we like it a lot, and we're continuing to roll it out," Delta's president said during a recent investor call. What Do Experts Say About the Change? Clint Henderson with the travel website claimed integrating artificial intelligence takes the dynamic pricing model up to 11. "Airlines already have a huge team of revenue managers who are looking to see what demand is like in different markets, what days of the week they should raise, when they should lower prices, how fare buckets are selling or not selling, and adjusting prices accordingly," Henderson said. "So instead of having ten humans doing pricing, they'll have a machine doing it for them." Meanwhile, just last week, Democratic Senators Ruben Gallego, Mark Warner and Richard Blumenthal said they believed the Atlanta-based airline would use AI to set individual prices, which would 'likely mean fare price increases up to each individual consumer's personal 'pain point.'' Delta's Response to the Uproar In a response to the senators, Delta Air Lines made it clear the airline isn't taking the personal data from customers in an effort to offer more dynamically priced tickets. 'There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data,' the company said, via Reuters. 'Furthermore, we have zero tolerance for discriminatory or predatory pricing and fully comply with applicable laws in privacy, pricing and advertising. Our Al-powered pricing functionality is designed to enhance our existing fare pricing processes using aggregated data. This technology is a decision-support tool that simply provides informed insights for our analysts, who oversee and fine-tune the recommendations to ensure they are consistent with our business strategy.' Related: Southwest Airlines Announces Change on All Flights Starting August 13 Delta Air Lines Breaks Silence on Controversial Pricing Change first appeared on Men's Journal on Aug 2, 2025 Sign in to access your portfolio
Yahoo
05-08-2025
- Business
- Yahoo
Delta Air Lines Breaks Silence on Controversial Pricing Change
Earlier this week news broke that Delta Air Lines doubled down on its plans to use an AI system to dynamically set ticket pricing. The airline said it plans to deploy AI-based revenue management technology across 20 percent of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. Delta Air Lines currently uses the platform for 3 percent of its domestic flights. "We like what we see, we like it a lot, and we're continuing to roll it out," Delta's president said during a recent investor call. What Do Experts Say About the Change? Clint Henderson with the travel website claimed integrating artificial intelligence takes the dynamic pricing model up to 11. "Airlines already have a huge team of revenue managers who are looking to see what demand is like in different markets, what days of the week they should raise, when they should lower prices, how fare buckets are selling or not selling, and adjusting prices accordingly," Henderson said. "So instead of having ten humans doing pricing, they'll have a machine doing it for them." Meanwhile, just last week, Democratic Senators Ruben Gallego, Mark Warner and Richard Blumenthal said they believed the Atlanta-based airline would use AI to set individual prices, which would 'likely mean fare price increases up to each individual consumer's personal 'pain point.'' Delta's Response to the Uproar In a response to the senators, Delta Air Lines made it clear the airline isn't taking the personal data from customers in an effort to offer more dynamically priced tickets. 'There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data,' the company said, via Reuters. 'Furthermore, we have zero tolerance for discriminatory or predatory pricing and fully comply with applicable laws in privacy, pricing and advertising. Our Al-powered pricing functionality is designed to enhance our existing fare pricing processes using aggregated data. This technology is a decision-support tool that simply provides informed insights for our analysts, who oversee and fine-tune the recommendations to ensure they are consistent with our business strategy.' Related: Southwest Airlines Announces Change on All Flights Starting August 13 Delta Air Lines Breaks Silence on Controversial Pricing Change first appeared on Men's Journal on Aug 2, 2025
Time Out
05-08-2025
- Business
- Time Out
Is Delta using AI to personalize ticket prices? Here's how the airline responded to those worrying rumors
From fuel costs to holiday rushes, many factors play into the fluctuating cost of air travel. Now, Delta Air Lines is adding AI to the mix—but not without sparking concern. Delta recently faced a wave of criticism from lawmakers who feared the airline might start using AI to tailor prices to individuals based on personal data. Senators Ruben Gallego, Mark Warner and Richard Blumenthal warned of a future where passengers are charged based on their "pain point"—a.k.a. the maximum they're willing to pay—echoing the surge pricing model of Uber and Lyft. Delta responded swiftly. In a letter to the senators, the airline stated plainly: It has never used personal data to set individualized prices, nor does it plan to. "Our ticket pricing never takes into account personal data," the company wrote. Instead, Delta says its AI rollout is about speed—helping adjust to shifting market conditions faster and smarter, not pricing passengers based on who they are. The technology comes from Fetcherr, an Israeli startup specializing in AI-based pricing management. Delta aims to have it running across 20-percent of its domestic network by the end of 2025. Fetcherr promises airlines can "personalize offers" and "maximize profitability," language that raised more than a few red flags in Washington. Lawmakers aren't fully convinced. "Delta is telling their investors one thing, and then turning around and telling the public another," said Senator Gallego in a public statement. He and others want clarity on what kind of data Delta is actually using. Delta insists that the AI helps manage traditional variables like demand, competition and route popularity—nothing new in the airline world. "AI promises to streamline the process," not manipulate it, the company assured. Meanwhile, rivals are also weighing in. Per FOX Business, American Airlines CEO Robert Isom warned that using AI to push personal pricing "could hurt consumer trust." The debate is only heating up. A new bill introduced by Democratic lawmakers Greg Casar and Rashida Tlaib seeks to ban AI-driven pricing based on personal data altogether, citing FTC concerns about increasingly tailored—and potentially exploitative—pricing models.
Straits Times
05-08-2025
- Business
- Straits Times
US to investigate the use of AI to personalise airline ticket prices
Sign up now: Get ST's newsletters delivered to your inbox A plane of US airline Delta approaches for landing at Benito Juarez International Airport in Mexico City on July 22, 2025. WASHINGTON - Transportation Secretary Sean Duffy said on Aug 5 the department has concerns about the use of AI to set personalised airline ticket prices and will investigate if anyone does so. Last week, Delta Air Lines told lawmakers it will not and has not used AI to set prices for individual consumers. 'To try to individualise pricing on seats based on how much you make or don't make or who you are, I can guarantee you that we will investigate if anyone does that,' Mr Duffy said. 'We would engage very strongly if any company tries to use AI to individually price their seating.' Mr Duffy noted Delta clarified that it would not use AI for pricing individual tickets, 'and I'll take them at face value.' Late in July, Democratic Senators Ruben Gallego, Mark Warner and Richard Blumenthal said they believed the Atlanta-based airline would use AI to set individual prices , which would 'likely mean fare price increases up to each individual consumer's personal 'pain point.'' Delta previously said it 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. Fetcherr on its website says its technology is 'trusted by the world's leading airlines,' and lists Delta, Westjet, Virgin Atlantic, Viva and Azul. Top stories Swipe. Select. Stay informed. Singapore More train rides taken in first half-year, but overall public transport use stays below 2019 levels Singapore BlueSG needs time to develop software, refresh fleet, say ex-insiders after winding-down news Asia Cambodia-Thailand border clash a setback for Asean: Vivian Balakrishnan Singapore 'She had a whole life ahead of her': Boyfriend mourns Yishun fatal crash victim Singapore Doctor hounded ex-girlfriend, threatened to share her intimate photos, abducted her off street Asia Trump's transactional foreign policy fuels 'US scepticism' in Taiwan Business Women on corporate boards give firms a competitive advantage, says Australian Governor-General Singapore CEO of sports car distributor accused of offences including multiple counts of false trading American Airlines CEO Robert Isom said last month using AI to set ticket prices could hurt consumer trust. Democratic lawmakers Greg Casar and Rashida Tlaib have introduced legislation to bar companies from using AI to set prices or wages based on Americans' personal data and would specifically ban airlines raising individual prices after seeing a search for a family obituary. Delta said airlines have used dynamic pricing for more than three decades, in which pricing fluctuates based on a variety of factors like overall customer demand, fuel prices and competition, but not a specific consumer's personal information. REUTERS
