Watch CBS News

Delta plans to use AI in ticket pricing. Here's how it could impact the cost to fly.

Artificial intelligence could set the price of your next flight.

One of the nation's biggest airlines, Delta, is making headlines after its president revealed plans to double down on using AI to dynamically set ticket pricing. The airline plans to use AI to set prices for up to 20% of its domestic flights by the end of the year, up from its current 3%.

"We like what we see, we like it a lot, and we're continuing to roll it out," Delta's president said during a recent investor call.

Clint Henderson with the travel website ThePointsGuy.com says integrating artificial intelligence takes the dynamic pricing model airlines already use and puts it on steroids.

"Airlines already have a huge team of revenue managers who are looking to see what demand is like in different markets, what days of the week they should raise, when they should lower prices, how fare buckets are selling or not selling, and adjusting prices accordingly," Henderson said. "So instead of having ten humans doing pricing, they'll have a machine doing it for them."

But Delta's plan is hitting turbulence. Three U.S. senators sent a letter to the airline raising privacy concerns, accusing Delta of using personal data to set individualized prices.

CBS Philadelphia asked Delta for comment, and a spokesperson said the airline isn't using personal data to charge customers different fares.

"There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal information or otherwise," a Delta spokesperson said in an emailed statement. "A variety of market forces drive the dynamic pricing model that's been used in the global industry for decades, with new tech simply streamlining this process. Delta always complies with regulations around pricing and disclosures."

However, Delta executives previously said to investors that the technology is capable of setting fares based on what it predicts someone would be willing to pay for that ticket. Fetcherr, the company providing the technology to Delta, previously bragged about "hyper-personalization" of prices before scrubbing it from its site, travel site Thrifty Traveler first reported.

Frequent flyer Rebecca Perschon says she worries the high-tech approach could make it harder to know whether you're getting a good deal.

"I think we'd be at a disadvantage," Perschon said, noting she and her fiancé are usually limited to traveling at peak times on weekends and during holidays due to their work schedules. "We just kind of have to build that into our travel budget every year, sadly."

Henderson said as more airlines use more data to set prices, inevitably, what you pay will become more personal and less predictable.

"Machines are better than humans at setting prices, so prices overall could trend higher," he said. "That's why airlines are investing in this."

View CBS News In
CBS News App Open
Chrome Safari Continue