Delta, Detroit and Flight 3612
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Delta’s personalized AI pricing tech is provided by travel firm Fetcherr, which also partners with Virgin Atlantic, Azul, WestJet, and VivaAerobus. In Delta’s case, the AI will act as a “super analyst” that operates 24/7 to determine custom ticket prices that should be offered to individual customers in real-time, per specific flights and times.
A Delta Air Lines flight from Omaha heading to Detroit made an unexpected stop after a male passenger from Nebraska attempted to open an exit row door.
Delta and United have benefitted from an emphasis on premium travel and international trip demand. For United Airlines CEO Scott Kirby, there's his airline, his carrier's main rival, Delta Air Lines, and then everyone else.
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Last year, Delta Air Lines announced it was testing out dynamic pricing on some flights using tools built by the tech company Fetcherr. And while the test was initially limited, executives from the company announced that 3% of flights now use AI pricing, and they hope to sell 20% of all tickets using a dynamic price by the end of the year.
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Delta Air Lines has begun to use AI to price tickets, charging people based on a calculation of what they should pay rather than a standard fare for all passengers. Delta said it is using AI to determine 3% of current fares charged and considers this method of pricing by personal stats to be "amazingly favorable.
Although Delta's AI pricing could increase competition in the airline industry, Slover expects that companies using such pricing schemes are "all too likely" to be incentivized "to skew in the direction of higher prices" because of the AI pricing's lack of transparency.
About 3 percent of Delta’s domestic ticket prices are now determined by artificial intelligence (AI), with plans to raise that to 20 percent by year’s end, President Glen Hauenstein said on an earnings call last week.
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A basic business class fare means some customers might pay additional fees after dropping thousands on their tickets.