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BumRushDaShow

(156,921 posts)
Tue Jul 22, 2025, 05:45 PM 19 hrs ago

Outrage Grows as Delta to Price Tickets Based on What AI Thinks You'll Pay

Source: Newsweek

Published Jul 22, 2025 at 10:24 AM EDT


Three U.S. senators are demanding answers over Delta Air Lines' planned expansion to use artificial intelligence to set individualized fares — insisting the strategy is fraught with privacy concerns.

Sens. Ruben Gallego, Richard Blumenthal and Mark Warner, all Democrats, sent a letter Monday to the Atlanta-based airline seeking additional details of plans to deploy AI-based revenue management technology across 20 percent of its domestic network in a matter of months.

"Individualized pricing, or surveillance-based price setting, eliminates a fixed or static price in favor of prices that are tailored to an individual consumer's willingness to pay," the senators wrote to Delta in a letter obtained by Newsweek.

"Delta's current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer's personal 'pain point' at a time when American families are already struggling with rising costs."

Read more: https://www.newsweek.com/senators-want-answers-delta-ai-powered-pricing-plan-2102358



Link to Senator Gallego PRESS RELEASE - Gallego, Colleagues Demand Answers from Delta CEO as Company Moves Toward AI Pricing Model to Set Airfares

Link to LETTER (PDF) - https://www.gallego.senate.gov/wp-content/uploads/2025/07/Delta-AI-Letter.pdf
31 replies = new reply since forum marked as read
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Outrage Grows as Delta to Price Tickets Based on What AI Thinks You'll Pay (Original Post) BumRushDaShow 19 hrs ago OP
I guess the first thing it will look for is... S/V Loner 19 hrs ago #1
AI is GIGO creon 19 hrs ago #2
What is in the AI program? Bernardo de La Paz 14 hrs ago #16
Good Bye Delta. Do they think we're made out of Money Bread and Circuses 19 hrs ago #3
I'll fly for $50 an hour and free drinks. hunter 19 hrs ago #4
This is supposed to be illegal iemanja 19 hrs ago #5
exactly...you can't charge different people different prices for the same thing. Native 14 hrs ago #15
Of course you can charge people different prices for the same product. Medicare does precisely that. When your Modified 24601 4 hrs ago #21
i'm talking about retailers. the government has its own set of rules. Native 3 hrs ago #25
Are you sure? intrepidity 4 hrs ago #22
There are a lot of components to this... Native 2 hrs ago #29
Zero Marthe48 19 hrs ago #6
This is end-stage capitalism. There is nothing left beyond it. It is greed in its purest, most inhuman form and needs to Karasu 18 hrs ago #7
Robert Reich profiled this fucking shitty MAGA bot fuck shit with AI based pricing models SoFlaBro 18 hrs ago #8
So if a loved one who was rushed to a neuro ICU... EarthFirst 18 hrs ago #9
1) AI would not know of ICU situation, 2) Same day flights at higher pricing is as old as airlines. . . . nt Bernardo de La Paz 14 hrs ago #17
How do you know??? Hornedfrog2000 5 hrs ago #18
The example given was an emergency, immediately. They would not know. No data Bernardo de La Paz 5 hrs ago #19
I think the point was not what AI knows intrepidity 4 hrs ago #24
on demand pricing. price of beans from cart to checkout goes from 99 cents to 1.29 msongs 18 hrs ago #10
My November flight to JAX is already paid for. ProudMNDemocrat 18 hrs ago #11
What a bizarre concept dlk 17 hrs ago #12
No wonder the politicians are alarmed. What if the corporate world dobleremolque 14 hrs ago #13
It's the "convenience fee" for shopping online and paying by credit card FakeNoose 14 hrs ago #14
I think this kind of model will become increasingly common Torchlight 5 hrs ago #20
So I can get cheaper stuff too, right? intrepidity 4 hrs ago #23
This country is getting so dark BeyondGeography 3 hrs ago #26
We cheat all the others and pass the savings on to you! Turbineguy 2 hrs ago #27
Haven't flown in years and am not going to start Ritabert 2 hrs ago #28
Next: How much are you willing to pay for a banana? Midnight Writer 1 hr ago #30
The Irony Blackjackdavey 53 min ago #31

S/V Loner

(9,410 posts)
1. I guess the first thing it will look for is...
Tue Jul 22, 2025, 06:05 PM
19 hrs ago

your credit score. High score…high ticket price. Assumption will be that you can afford it.

Bernardo de La Paz

(57,199 posts)
16. What is in the AI program?
Tue Jul 22, 2025, 11:19 PM
14 hrs ago

A whole bunch (often millions) of artificial neurons, their weights as an array, input and output arrays, perhaps some gating and some convolution filters, a training regimen.

I don't think you knew that.

As much as we can say AI is GIGO we can say child-rearing is GIGO, education is GIGO, and confirmation bias in DU posts is GIGO.

Native

(7,194 posts)
15. exactly...you can't charge different people different prices for the same thing.
Tue Jul 22, 2025, 11:00 PM
14 hrs ago

for example, if a company offers a senior discount, nonseniors who ask for those discounts have to legally be be given them. Business Law 101. This is called pricing discrimination, and it is illegal.

24601

(4,093 posts)
21. Of course you can charge people different prices for the same product. Medicare does precisely that. When your Modified
Wed Jul 23, 2025, 08:57 AM
4 hrs ago

Adjusted Gross Income (MAGI) increases beyond set amounts, you are charged an Income-Related Monthly Adjustment Amount (IRMAA). There is no increased benefit, just an increased cost. And it's backdated two years.

https://www.edwardjones.com/us-en/market-news-insights/guidance-perspective/act-now-save-medicare-later

intrepidity

(8,367 posts)
22. Are you sure?
Wed Jul 23, 2025, 09:06 AM
4 hrs ago

How do I ask for such a discount, and what do I say when they decline? (eg, around here they offer discounts to military, which I am not, and say you need to show ID)

Native

(7,194 posts)
29. There are a lot of components to this...
Wed Jul 23, 2025, 11:15 AM
2 hrs ago

state laws, federal laws, civil rights laws...it's very complicated. Price discrimination is regulated in many ways...
but no one is going to take Dunkin Donuts to court because they are giving seniors and the military 10% off a donut and coffee, simply because it's not harming their competitors.

That said, years ago, one of our chain stores was offering a very significant discount for seniors on a certain day at a certain time, and I contacted corporate and complained (I wasn't eligible), and they sent me a letter that I could produce at the local store to qualify for that discount. Shortly thereafter they discontinued it, and changed it to a standard senior discount that was nominal.

If DELTA pulls this off, I'll be very surprised. Dynamic pricing is bad enough, but this is definitely over the line.

While military and senior discounts are price discrimination, they've been acceptable for a long time because they are generally so small they aren't causing any harm. Price discrimination based on sex (ladies' nights) or race are more problematic because of civil rights laws.

Karasu

(1,654 posts)
7. This is end-stage capitalism. There is nothing left beyond it. It is greed in its purest, most inhuman form and needs to
Tue Jul 22, 2025, 06:47 PM
18 hrs ago

Last edited Tue Jul 22, 2025, 09:54 PM - Edit history (1)

be nipped in the bud NOW.

Or very soon, this model is going to be applied to fucking everything. The tiny shred of "humanity" still left in capitalism will be completely fucking gone.

EarthFirst

(3,742 posts)
9. So if a loved one who was rushed to a neuro ICU...
Tue Jul 22, 2025, 06:58 PM
18 hrs ago

AI would know that without hesitation they would spend $800 on a same day cross-country flight to be with them; would surely would pay $1050 and return queries for flights at the higher price point…

Of course; that’s never what they’ll admit; but who would know?

Bernardo de La Paz

(57,199 posts)
17. 1) AI would not know of ICU situation, 2) Same day flights at higher pricing is as old as airlines. . . . nt
Tue Jul 22, 2025, 11:23 PM
14 hrs ago

Hornedfrog2000

(380 posts)
18. How do you know???
Wed Jul 23, 2025, 07:55 AM
5 hrs ago

Lol. You dont. They know where we go, who our family is, what we buy, eat, etc. They literally advertise to pregnant mothers they need lotions for stretch marks early, or that you are going to need formula and dipers towards the end of your pregnancy.

You do not know.

Bernardo de La Paz

(57,199 posts)
19. The example given was an emergency, immediately. They would not know. No data
Wed Jul 23, 2025, 08:08 AM
5 hrs ago

Able gets a phone call from his sister Baker and ten minutes later searches for a same day flight to Charleston. No connection to a transient ischemic attack in someone's brain.

The airline pricing is not done by super-sophisticated tracking with dozens or hundreds of online "partners" even though they have dozens or hundreds of online partners. It is done simply by things like Able looks at prices for a flight and after a pause of ten minutes is back on the site looking for seating availability.

Your point is well taken for ordinary events, long duration events. But it does require people giving them data. Not everyone gives them data.

intrepidity

(8,367 posts)
24. I think the point was not what AI knows
Wed Jul 23, 2025, 09:18 AM
4 hrs ago

but that the person was willing to pay a higher price due to mitigating circumstances, and so will be considered a soft mark for future tix prices.

msongs

(71,827 posts)
10. on demand pricing. price of beans from cart to checkout goes from 99 cents to 1.29
Tue Jul 22, 2025, 07:15 PM
18 hrs ago

just during the short walk to the counter.

ProudMNDemocrat

(19,913 posts)
11. My November flight to JAX is already paid for.
Tue Jul 22, 2025, 07:16 PM
18 hrs ago

Since my husband died, I have NO credit rating as I had to close our CC accounts.

I will not be choosing Delta in the future. I have a trip planned in January to Hawaii that is paid for that I had to cancel. That is with Southwest. Of course, the baggage fees will be added.

dlk

(12,793 posts)
12. What a bizarre concept
Tue Jul 22, 2025, 08:21 PM
17 hrs ago

Dreaming up new and novel ways to wring every last dollar from their customers. I would never fly on such an airline, ever!

dobleremolque

(1,031 posts)
13. No wonder the politicians are alarmed. What if the corporate world
Tue Jul 22, 2025, 10:37 PM
14 hrs ago

figures out how to apply this AI technology to campaign contributions? But in reverse.... as in, how little can they give to bend any particular politician to the will of the oligarchy?

Edited to add: This isn't really a new concept. It's been applied to taxation for centuries. Jean Baptiste Colbert, finance minister to King Louis XIV of France is credited with saying that: "The art of taxation consists of so plucking the goose as to acquire the greatest amount of feathers with the least amount of hissing."

FakeNoose

(37,948 posts)
14. It's the "convenience fee" for shopping online and paying by credit card
Tue Jul 22, 2025, 10:55 PM
14 hrs ago

Nobody would be charged this if they went to the airport and bought tickets directly from the airline. Or by going to an old-style travel agent and booking the trip. We've become lazy, letting our phones handle everything, and that's how AI apps can easily calculate how much we're willing to pay.

Torchlight

(5,159 posts)
20. I think this kind of model will become increasingly common
Wed Jul 23, 2025, 08:21 AM
5 hrs ago

as technology continues to evolve and meet the needs of typical retail operators. If platforms support it, I wouldn’t be surprised to see AI-driven pricing become as widespread as electronic payment systems.

Honestly, when I was growing up, I imagined a future full of flying cars—not surveillance-based pricing, QR codes, and constant multi-step authentication. But here we are… and tomorrow just keeps getting stranger.

intrepidity

(8,367 posts)
23. So I can get cheaper stuff too, right?
Wed Jul 23, 2025, 09:14 AM
4 hrs ago

Logically, this should be a way for the wealthy to subsidize the poor, because the wealthy can afford higher prices, right?

But we all know it won't work that way ... for reasons.

BeyondGeography

(40,550 posts)
26. This country is getting so dark
Wed Jul 23, 2025, 10:30 AM
3 hrs ago

More and more people are going to fly away and hardly ever (or never) come back.

Blackjackdavey

(227 posts)
31. The Irony
Wed Jul 23, 2025, 12:40 PM
53 min ago

They can do this when we shop but just can't figure it out with income taxes? Gotta love it.

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