Airline ticket prices, the algorithm reigns
Carriers bet on artificial intelligence to increase revenues
Airlines around the world are increasingly relying on artificial intelligence (AI) to rule price tickets. The goal is to maximize revenues. It is a system that determines the "correct rates" in real time: that is, it is able, thanks to continuous training, to identify for each customer the maximum cost that the consumer is potentially willing to spend.
"AI could help determine how much consumers are willing to pay for the company's premium products compared to base rates. The machines show us what they think we should do, and the analysts look at what the machines recommend", said Delta Air Lines President Glen Hauenstein.
The management of the American airline announced that in 2023 the sale of tickets to passengers generated revenues of 49 billion dollars, a performance that marked a +1% thanks to the use of AI: that is, approximately 500 Millions of dollars. Ryanair, Tui Airways and others are also experimenting with machine learning. The common goal is to understand how much to raise the flight fare without losing the customer.
AVIONEWS - World Aeronautical Press Agency