Delta Advances Toward AI-Based Personalized Ticket Pricing

Delta Advances Toward AI-Based Personalized Ticket Pricing Delta Advances Toward AI-Based Personalized Ticket Pricing

Delta Air Lines is doubling down on AI to boost profits by personalizing ticket prices. The airline plans for 20% of its fares to be AI-driven by year-end, up from just 3% now. President Glen Hauenstein called it a full overhaul of pricing—each ticket priced specifically for the individual buyer.

Hauenstein described AI as a “super analyst” working nonstop to set the “right” price in real time. Delta is partnering with Israeli startup Fetcherr, whose tech already serves Azul, WestJet, Virgin Atlantic, and others. Fetcherr’s cofounder says they aim to expand personalized pricing beyond flights into hotels, car rentals, and cruises.

The shift has sparked backlash. Privacy advocates warn Delta is “hacking our brains” to find out exact passenger willingness to pay. Sen. Ruben Gallego called the move “predatory pricing” on X (formerly Twitter), promising to fight back.

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Delta denied any discriminatory intent.

“We have zero tolerance for discrimination. Our fares are publicly filed and based solely on trip-related factors like advance purchase and cabin class, and we maintain strict safeguards to ensure compliance with federal law.”

Delta’s spokesperson declined to specify what those safeguards are or how AI prices fit with publicly filed fares.

AI pricing isn’t new—airlines have long tweaked fares based on how and when you book. But AI supercharges this, creating completely personalized prices. Experts warn the “era of ‘fair’ pricing is over.”

Gary Leff, a travel industry expert, says Delta is unusually open about its AI plans, but other airlines like United and American are also making moves with generative AI. Early studies from Consumer Watchdog show AI pricing tends to favor wealthier customers with better deals, while lower-income passengers get hit hardest.

Travelers might still game the system short term by clearing cookies or using VPNs. Long term, buying tickets may require logging in and submitting to personalized pricing to unlock perks.

The AI pricing rollout will take years, but initial results reportedly show “amazingly favorable unit revenues.”

Watch this space. Personalized airfare pricing powered by AI just went mainstream—and it’s stirring serious controversy.

Watch Fetcherr cofounder Robby Nissan talk expansion plans at a travel conference in 2022

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