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Delta moves toward eliminating set prices in favor of AI that determines how much you personally will pay for a ticket (fortune.com)

submitted 4 days ago by [email protected] to c/[email protected]

220 comments fedilink hide all child comments

Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

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[–] [email protected] 58 points 3 days ago* (last edited 3 days ago) (3 children)

They left it until the very end of the article:

Early research on personalized pricing isn’t favorable for the consumer. Consumer Watchdog found that the best deals were offered to the wealthiest customers—with the worst deals given to the poorest people, who are least likely to have other options.

[–] [email protected] 14 points 3 days ago

Yeah when I started travelling on a generous business expense account I found that it was increasingly the case that I didn’t even need to charge things to it. Things just start becoming fucking free when you’ve got money.

[–] [email protected] 15 points 3 days ago

Of course.

[–] [email protected] 1 points 3 days ago (1 children)

This is honestly surprising to me. Wouldn't they charge wealthy people more because they could just suck up the higher prices?

[–] [email protected] 1 points 3 days ago

Nono, see. They want to lock in repeat visits and gain them as an investor, then use their influence to suckle cash out of the remaining populace.