Delta to Increase AI Use in Determining Airfares

  Rassegna Stampa, Social
image_pdfimage_print

The next time you book a flight on Delta Air Lines, artificial intelligence may play a role in determining the price you pay.

The Atlanta-based carrier indicated that it will increase the use of AI in its ticket pricing model, with the goal of influencing 20% of its domestic flights by the end of 2025.

Delta president Glen Hauenstein said during the company’s second-quarter earnings call July 10 that the airline currently uses AI to price about 3% of its flights.

“We like what we see. We like it a lot, and we’re continuing to roll it out,” he added.

During the company’s investor day last November, Hauenstein indicated that the airline was working toward eliminating static pricing altogether, favoring a dynamic pricing model.

Delta is partnering with Israeli-based AI travel firm Fetcherr in rolling out its AI flight pricing strategy. Fetcherr also counts WestJet, Virgin Atlantic, Azul, and VivaAerobus among its clients.

According to The Points Guy, airlines have deployed AI in recent years for a multitude of operational uses and products, including enhanced bag-tracking features that integrate with Apple AirTags, gate technology to prevent line-cutters, and improved tools to help passengers rebook when flights are delayed or canceled.

Airlines have also upgraded their revenue management systems—a tool crucial in determining flight pricing—and they are now equipped to assess factors such as supply and demand more accurately for a particular flight.

When combined with AI, these revenue management systems could better determine ways to extract even more money from the flying public, leading to better profit margins for the airlines.

https://www.adweek.com/commerce/delta-to-increase-ai-use-in-determining-airfares/