Travel

How Delta’s AI ticketing tool affects the fees you pay

Is it really behind artificial intelligence that you pay for your flight? Last month, Delta Air Lines sparked a controversy danger when it revealed it was using AI to help some of its flights.

The radiation includes a stern letter from Congress (Delta says it contains “misinformation”)…not to mention the public condemnation of the CEO of American Airlines.

Meanwhile, those of us who fly frequently want to know what the price of using AI is. Our best guess: higher fares Some Flights, more price fluctuations and some discounts.

Oh, how does your personal information get involved in this?

“I still have questions,” a prominent senator told me this week.

That’s what we know.

What exactly happened to Delta, AI and air tickets?

Last month, a senior executive announced that Delta’s AI pricing strategy was indeed at the forefront when Atlanta-based airlines began using AI to assist with domestic networks priced at about 3%.

So what exactly is needed?

According to Delta’s explanation, the operator is using AI to essentially automate part of its complex process of setting fares.

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Looking at the windows of the airline plane of the Delta. Clint Henderson / Score guy

For decades, airlines have used “dynamic pricing” to tailor fares to meet demand.

This is a high price strategy for Sunday after Thanksgiving, or you may find discounts if you book your trip during a quieter fall fall.

Historically, fares were set by a combination of human analysts and algorithms that evaluated a bunch of factors, from supply and demand to airlines’ competition on one route and how popular travel is on a particular day.

Now Delta has this AI tool – launched through a partnership with Israeli tech company Fetcherr, which the airline describes as a “super analyst” working around the clock to evaluate data and make pricing recommendations.

Reality check

Currently, Delta only has AI tools working on a small percentage of its flights.

However, the company said on its latest earnings call that by the end of 2025, AI could make fares recommendations for nearly 20% of the Delta network.

Delta Airbus A350-900
Delta Airbus A350-900 aircraft at Los Angeles International Airport (LAX). Zach Griff/The Points Guy

Will AI lead to higher air tickets?

Let’s talk about price – a big lingering problem for many consumers.

Higher fares on certain flights

I hope you’ll suddenly see dramatic spikes in the fare? No.

However, the air ticket experts I talk to believe that over time, AI-affected prices could lead to a large number of flights rising prices.

After all, Delta ostensibly leverages this technology to further achieve each airline’s goal: fill as many seats as possible and earn as much revenue for each seat in each seat.

“Passengers can pay higher prices on average,” predicted Kerry Tan, an aviation revenue management expert at Loyola University in Maryland. “Ultimately, this is Delta’s attempt to better estimate customers’ willingness to pay for their flights.”

Price fluctuates more – but there are discounts

I think it’s a safe bet and you’ll see more price volatility, as AI will help airlines make more precise pricing adjustments based on IT trends.

After all, if AI should do its best, it should be able to predict when the Delta will get $15 in its seats — or when it should drop $10 to sell out the last few seats, a flight that isn’t completely sold out.

You know the $200 flight from Atlanta to New York, and then back a day later, and find the price is up $50?

Looking forward to something more.

It’s also possible: You booked more cases of $170 flights from Los Angeles to Phoenix, but only later learned that the price was down 15%. Delta acknowledges that its AI tools sometimes suggest reduce Flight price.

What about your personal data?

Some MPs have other concerns.

Last month, three Democratic senators accused Delta of using “personalized” and “surveillance” pricing, essentially, the situation where two passengers search for flights simultaneously may set different prices based on the personal data at hand of the airline.

The Delta firmly calls it “incorrect” and says its AI tools only make pricing recommendations based on broad (rather than personal) data such as booking trends and fuel prices.

US Capitol building dome
US Capitol Penny Rogers Photography/Torque/Get Timages

Lingering privacy issues

Still, some industry insiders fear that airlines may eventually far outpace the growth in AI usage.

After all, operators can access troves of customer data through their loyalty programs: which flights they book, if they have elite status, and whether they tend to book stylish Lie-flat seats or the cheapest coaching tickets.

Industry analyst Henry Harteveldt said it is “reasonable business practice” to use AI to fine-tune fares to meet a wide range of demands (which is actually what Delta says).

“But the concern is — very real — if Delta does use the data they have, like the zip code,” added Harteveldt, president of the Atmospheric Research Group. “They are not entitled to charge you more because if you live in Greenwich, Connecticut, on Greenwich, Harlem, they live on the upper west side of Manhattan, and they charge you more than they can. They can’t.”

Delta: No “personalized” fares

Again, the Delta is firm: Yes no Customized prices for individual customers, that won’t.

“In addition, we have zero tolerance for discriminatory or predatory pricing,” Peter Carter, the airline’s chief external affairs officer, wrote last week.

Legislator weight

Currently, the top U.S. aviation regulator says he is satisfied with the explanation.

“I will use face value as value,” Transport Secretary Sean Duffy said in a press conference Tuesday.

Transport Secretary Sean Duffy spoke at a press conference on August 5.

But on Capitol Hill, some lawmakers still have questions, citing a large amount of data available to Delta’s AI partner Fetcherr (this did not respond to a request for comment).

“If the AI tool does know that you bought a Taylor Swift ticket, or find out that your grandmother has passed away, how do you stop this from entering the pricing model?” Sen. Mark Warner, a Democrat from Virginia, told TPG. “My feeling is that the Delta is caught in a cookie jar.”

Tips for finding the cheapest flights in the AI world

Whether cookie jar or not, this is our best advice for finding flights in a world where AI helps set flight prices.

Set price alerts and monitor prices closely

A website like Google Flights will let you set price tracking alerts so you can watch when fares jump or fall. Booking early is still your best choice. If you see a good price, I’ll lock it up.

Book your ticket price, you can change it later

Even after booking, pay close attention to the price of the flight. Most airlines will let you change your tickets after the fact happens, and then you will keep the travel difference for the next flight.

Just know: This advice does not apply to the basic economy, which usually comes with a lot of cancellations and is not allowed to change.

Flexibility is the king

If you are related to a strict in-person work or school schedule, it is easier said than done, but the more open rates you have, you can be related to different travel dates, eras, airlines and airports, then you have a better chance to get to the best price.

If your only option is to depart at 5pm on Friday, you will be at the mercy of any flight costs.

Pay attention to transactions

As mentioned earlier, Delta said its AI tools often recommend lowering fares to make prices more competitive.

I will be watching out for these discounts, which are sure to be more common on human dates like Tuesday and Wednesday (Tuesday and Wednesday)…not to mention the “shoulder” season of autumn, one of the best times of the year to get a flight protocol.

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