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AI Company Claims to Personalize Delta Flight Prices

Delta Air Lines Advances AI-Driven Pricing Amid Privacy Concerns
Delta Air Lines is expanding its use of artificial intelligence (AI) to determine flight prices, asserting that it does not employ personal data to charge customers different fares. The airline has partnered with Israeli startup Fetcherr to implement an AI-driven pricing system, which it expects will set 20% of its fares by the end of the year. However, Fetcherr’s earlier promotional materials highlighted the potential for AI to enable “hyper-personalization that drives revenue growth,” a phrase that was quietly removed from its website earlier this month.
Fetcherr’s Shift Away from Hyper-Personalization
An archived version of a Fetcherr blog post titled “Dynamic Pricing in Aviation: How AI is Revolutionizing Airline Revenue Management” included a dedicated section on “Hyper-Personalization at Scale.” The company described leveraging factors such as customer lifetime value, past purchase behaviors, and the real-time context of booking inquiries to craft “a truly personalized offer.” The post emphasized understanding each customer as an individual and optimizing every interaction to maximize value. This section has since been deleted from the blog.
Thrifty Traveler confirmed that the original post was taken offline over a weekend and subsequently republished on July 22 with minor edits, including an updated publish date, a corrected spelling error, an added parenthesis, and notably, the removal of the personalized airfare section. The exact timing of the deletion remains unclear, with the last online record of the original post dated July 1.
Industry and Regulatory Reactions
Delta’s AI-driven pricing strategy attracted attention after President Glen Hauenstein disclosed to investors that the airline was using AI to set 3% of its domestic fares. This announcement sparked concerns about the potential use of personal data to impose higher prices on certain customers. In response, Delta issued a statement firmly denying any use of personal information in fare-setting, now or in the future.
A Delta spokesperson stated, “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 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.”
Despite these reassurances, Delta faces increasing scrutiny from lawmakers and consumer advocacy groups concerned that AI-driven, individualized pricing could result in higher fares for some travelers. The prospect of “personalized” pricing has raised alarms in Washington and among passengers worried about potential unfair targeting.
The Broader Implications for the Airline Industry
The airline industry and market observers are closely monitoring Delta’s AI pricing initiatives. Competitors may adopt similar AI-based strategies to remain competitive or may criticize Delta’s approach to defend their own pricing models. As AI continues to transform airline revenue management, debates over transparency, fairness, and regulatory oversight in airfare pricing are expected to intensify.

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