September 22, 2025

Are you a fan of airline points and travel deals? Then get ready for some hot news from the skies! Airlines like Delta are now using AI (artificial intelligence) to set ticket prices. This new method is called "dynamic pricing," and it's causing quite a stir. Many people thought it meant prices would change just for them based on who they are. But Delta says that's not true — at least, not yet. So, what is dynamic pricing? Think of it like prices that change with the time or demand. For example, a burger might cost less outside of lunchtime. It's a way to offer cheaper tickets if you book early or fly at less busy times. This kind of pricing actually existed long ago when people would haggle at markets depending on the time or their skills. You might know dynamic pricing already from apps like Uber, which charge more when many people want rides. Airlines have also done this for years, changing ticket prices based on things like how full a flight is or the day you fly. Now with AI, these changes will become even smarter and faster. Airlines have a tough job. They must fill expensive seats despite last-minute changes or delays. Customers want low prices but different comfort options. The competition is huge, and everyone looks for the best deal — often using technology themselves. AI helps airlines handle all this by adjusting prices all the time. This new AI system might even help travelers who can be flexible get cheaper tickets! Remember, airlines already charge more for upgrades like business class, extra bags, or meals — these are examples of personalized pricing based on what customers want or can pay. While flying has gotten cheaper for most people over time, personalized pricing could get even more precise thanks to AI. This means stores and other services may soon set prices just for YOU, based on your habits and data. Sounds exciting? Maybe, but also a little worrying. There are big questions ahead: Will some shoppers pay more while others save money? How will this affect inflation or fairness? Will laws protect our data and privacy? Imagine if your careful browsing or excitement about a trip made prices go up! Suddenly, sales tactics get trickier to spot. One thing's for sure: AI and dynamic pricing are here to stay — whether we love it or hate it. When buying online, prices might soon be unique to each person. That might make in-person shopping more popular again, but not for travelers who love hunting deals on the web. So buckle up, because the price ride is just beginning!

Read More at Economictimes →

Tags: Airline points, Dynamic pricing, Personalized pricing, Ai pricing, Airline industry, Consumer behavior,