Airline ticket prices used to be set months in advance after being approved by the Civil Aeronautics Board. After deregulation, airlines began setting their own routes, their own fares, and their own frequency of service.
As soon as it was feasible, airlines introduced dynamic pricing. Early discounts for the most price-sensitive and forward-looking consumers. Late price hikes as a flight fills up or the date of the flight approaches.
Now, Delta Air Lines has laid out a plan for personalized pricing. In its November 20, 2024 Investor Day, Delta said its long term plan was to make prices available “to you, the individual” rather than relying on dynamic pricing based on time and availability.
Delta Air Lines formally denies using personal information to determine airfares. Delta Air Lines formally denies transmitting personal information to Fetcherr, it’s AI pricing technology partner.
What has long been a concern of science fiction writers decades ago and consumer protection advocates in the past years is here. The airlines have the means and the motive to use AI, at a relatively low cost, to tailor prices to the individual.
FlyersRights is preparing detailed reports to present to the DOT and Congressional committees to get at the truth and to establish protections.
