We’re now deep into the AI era, where its use is expanding into all sorts of aspects of life. It’s not just about talking to ChatGPT or Gemini about your needs or using generative AI tools to create text, images, videos, and audio files. AI is increasingly being used by businesses to boost productivity, and we might not be thrilled about every aspect of that.
I’m not talking about AI stealing jobs, which is the biggest concern right now. Some companies are using AI to track users online and turn a profit. And it’s not just the usual suspects in ad-based businesses like Google and Meta.
Delta Air Lines is a prime example. The company has confirmed that it’s already using AI to sell plane tickets personalized to individual users. Delta aims to expand personalized fares from 3% to 20% this year.
That’s not great news for consumers. If Delta is using AI to create personalized prices and admitting it, others in the industry are probably testing similar systems. It likely won’t be long before other companies in the travel space adopt comparable pricing strategies.
Delta is already using AI to price tickets
Delta wants to boost profits by letting AI determine what price a customer is willing to pay. According to Fortune, Delta said it used AI in a pilot program involving 3% of fares, and the results were “amazingly favorable.”
These comments came from Delta president Glen Hauenstein, who told investors last week that 20% of the company’s ticket prices will be AI-driven by the end of the year. Eventually, static pricing might vanish from all Delta fares.
For consumers, that means the AI will offer a specific price for a specific route at a specific time. Others might see different prices tailored to their profiles. If AI sets all fares, it can guess how much you’re likely to pay based on what it knows about you.
Delta released better-than-expected results for the June quarter. It would be interesting to know if AI pricing played a part in that.
What does Delta know about you?
That’s a big privacy red flag. It’s unclear how or what data Delta collects from users. Personally, I wouldn’t want to fly with Delta or any airline using AI for pricing until I know exactly what kind of data is being gathered about me.
Fortune reports that Delta partnered with Israeli company Fetcherr for its AI pricing. Fetcherr also works with Azul, WestJet, Virgin Atlantic, and VivaAerobus. The company plans to expand into hospitality, car rentals, cruises, and other travel-related areas beyond airlines.
Delta told Fortune that it “has 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.”
Even so, it’s not clear how data collection works or what the AI sees when determining a personalized fare. It’s also unclear how customers consent to that data being collected and used.
Delta hasn’t explained what those “strict safeguards” are or where the AI-generated prices are displayed publicly.
I can imagine a future where airlines like Delta offer points and perks in exchange for consent to some level of online tracking by AI. That could be one way to figure out what people are willing to pay for flights.
As Fortune notes, privacy advocates are already raising concerns about Delta’s openness about using AI for personalized pricing and the fact that it’s effective.
Politicians are speaking out too. Senator Ruben Gallego (D-AZ) compared Delta’s AI pricing to “predatory pricing.”
What you can do
This isn’t the first time airlines have used tech to fine-tune prices. They’ve long used algorithms and loyalty programs to boost profits. AI just takes it further.
But there’s a right way to create personalized pricing that people can actually opt into. The key is getting informed consent from users before collecting their data.
Until then, you should take steps to avoid tracking. Try shopping for Delta seats in a different browser. Use incognito mode, avoid signing in, and consider using a VPN to mask your location. You might dodge some AI tracking and maybe find better deals.
I’d shop for any airline ticket the same way, assuming Delta’s competitors are either experimenting with similar tools or planning to.
Also, don’t forget that tools like Google Flights can quickly compare prices for you. You can even use AI chatbots like ChatGPT and Gemini to find fares and do the searching for you.
