6 days ago
Delta Airlines' shocking AI upgrade: It could soon set ticket prices based on what you can afford
What Is Delta's AI Pricing System?
Who Built It?
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What Makes This AI Different From Normal Fare Algorithms?
Is the AI Working For Delta?
What's an 'Offer Management' System?
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If you've ever paid more than your friend for the exact same Delta flight, the reason might be something much smarter and high-tech than just happening by chance because the culprit is artificial intelligence, as per a Air Lines is in the process of using a powerful AI-driven pricing system that could make airfare more personalized than ever before, as per an Investopedia the company's 2024 Investor Day and the second-quarter 2025 earnings call, Delta President Glen Hauenstein revealed that Delta Air Lines is currently using an AI pricing tool on 3% of domestic flights and now plans to expand it to 20% by the end of the year, according to the READ: AeroVironment and Kratos share prices surge over 10% after Pentagon's surprise drone buying spree The AI technology, which is developed by Israeli tech company Fetcherr, is designed to predict exactly how much a customer is willing to pay and set ticket prices accordingly, as reported by described the new AI tool as a 'super analyst' that never stops working, according to the report. It doesn't just look at supply, demand, or travel dates, instead, it analyses data to predict each individual customer's maximum acceptable price, as per the report.'The more cases we give it, the more it learns,' Hauenstein said during Thursday's earnings call, reported Investopedia. While still in a heavy testing phase, the AI is already shaping pricing decisions and will become a central part of Delta's future strategy, as he even said at the company's Investor Day in November that it is ushering in 'a full reengineering of how we price,' as quoted by READ: Want to moonlight and double your income? Head to this Chinese province offering incentives to side hustlers As per a transcript made available by AlphaSense, Hauenstein said in November that 'The initial results show amazingly favorable unit revenues,' reported Investopedia. While Fletcherr had said at a 2022 conference that its product had been shown to boost revenue 9%, Investopedia reported, citing the travel site One Mile at a expects that Fetcherr will set prices and determine how many seats are available at those prices, which eventually will create what Hauenstein called an 'offer management' system, reported said in November that, 'We will have a price that's available on that flight, on that time to you, the individual–not a machine that's doing an accept-reject, and a static price grid,' as quoted in the READ: NIO stock surges over 4% after Morgan Stanley says Buy following new SUV Onvo L90 launch To maximize revenue by offering each customer the highest price they're likely to accept, based on personal data and behavior especially if the AI predicts that one traveler is willing to pay more than the other, as per the report.
