Delta is expanding its AI pilot program to boost ticket prices for individual customers, sparking fresh concerns over “bespoke pricing.”
The issue started last month when Delta President Glen Hauenstein told investors they would widen the use of AI to maximize what customers pay. The move got attention for potentially ending fixed ticket prices and shifting to AI-driven personalized pricing.
Soon after, Delta denied it’s setting individual airfares with AI. The airline said AI is only refining dynamic pricing based on supply and demand. But critics question how AI could improve traditional pricing enough to justify the hype. 
Concerns persist that AI-powered pricing models will squeeze consumers by exploiting personal data to charge higher prices. Sellers can track a consumer’s purchases, finances, social activity, and more to tailor prices, reducing what economists call “consumer surplus” — the benefit when buyers pay less than their max price.
Airlines have long used tiered pricing (e.g., early bird fares, business class) but kept those prices public and transparent. Bespoke pricing would hide offers, letting companies capture all surplus by charging what each buyer can pay.
Most flights are near full capacity, so it’s unlikely bespoke pricing can profitably push discounts early on. The tech will likely target wealthier consumers willing to pay more.
The Federal Trade Commission looked into surveillance pricing last year. Now, Congress and states are reviewing data privacy laws to fight bespoke pricing.
Delta has subsequently insisted that it is not using AI to determine individual airfares, but merely to enhance the ways it has traditionally used dynamic pricing to adjust airfares to meet supply and demand generally.
Without regulation, consumers might fight back by masking identities through VPNs or other privacy tools.
Bespoke pricing flips the traditional market on its head — and which side AI takes could shape the future of online shopping.
Read more on FTC’s surveillance pricing study.
