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Delta moves toward eliminating set prices in favor of AI that determines how much you personally will pay for a ticket

Technology
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  • I was thinking the same thing, considering that I have less money to pay to fly my price should be lower, no? But the article ends on this note:

    Early research on personalized pricing isn’t favorable for the consumer. Consumer Watchdog found that the best deals were offered to the wealthiest customers—with the worst deals given to the poorest people, who are least likely to have other options.

    So basically the opposite of what it should be. I wouldnt mind individualized pricing if it meant Delta was robinhooding with their pricing model, but instead they are effectively using their pricing model to force out poorer consumers. Which makes sense from their perspective I suppose considering they can upsell more shit to people with more money.

    As someone who lives in a top-wealth zipcode (as a working class person) I assume by next year this means I will no longer be able to afford to fly out of town…

    Its starting to make sense why the GOP was working to ban regulation on AI use. This shit is blatantly unethical

    worst deals given to the poorest people, who are least likely to have other options

    (emphasys mine)

    Financially, giving the higher price to those who have fewer options is exactly "what it should be" so it makes sense that a pattern finding algorithm trained to find patterns in user data that indicate they are likely to agree to higher prices, produces such a result.

    It's Ethically and Morally that this is the very opposite of "what it should be".

  • People will not do anything. They might complain on Lemmy/Reddit/Facebook and then go watch another tiktok

    Most people don't even boycot companies for doing this shit.

  • Delta has been by go-to airline for a long time. After reading this, I never want to fly with them again. Fuck them and anyone else who does this. If we collectively do nothing to put a stop to this practice now, it will be everywhere soon. I fucking hate this level of capitalism. Greedy fucks.

    I travel for work and have flown a lot with all three major airlines. Delta is not the "go-to" airline. They all suck for different reasons, use what's most convenient for you. If you travel for work, pick one most convenient most of the time and build points, but just remember each one is shit.

  • Guess people will be moving away from Delta then.

    If this proves to be profitable, you know that the other airlines will do it.

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

    Sounds like a recipe for Unpredictable Rewards and messing with loyalty systems. Hook people on a loyalty program, slowly jack up the price, then throw in some real deals to keep them gambling for more. Don’t think an AI is necessary to do this, but corporate loves AI.

  • So its gonna run a soft credit check on you and then give you a price?

    You don't even need AI for that, and that'd be waaaaay cheaper to implement than AI.

    ...

    A Delta spokesperson told Fortune the airline “has zero tolerance for discrimination. Our fares are publicly filed and based solely on trip-related factors like advance purchase and cabin class, and we maintain strict safeguards to ensure compliance with federal law.”

    This is horseshit.

    In Economics, the entire concept of setting specific prices for specific market demographics is literally called 'price discrimination.'

    Advance purchase and different seating classes literally are price discrimination, third degree.

    Frequent flyer discounts would be second degree.

    Overall adjusting seat costs per flight based on how full or empty that flight is, is first degree price discrimination.

    ...

    This is like a company that sells chickens saying 'we don't sell chickens.'

    This is just gobsmackingly false, so blatantly so that it is actually funny.

    Airlines entire fucking business models are based on inventing new forms and strategies of price discrimination.

    ...

    What this asshat is saying is only even interpretable as true if what he means is 'we don't directly factor sexuality, age, disability, ethnicity, legally protected classes into our pricing model.'

    They of course do this indirectly by pulling a whole bunch of your meta data and then accurately inferring those things, and then discriminating against you based on that.

    It is laughably easy to get around US discrimination laws in this way, megacorps have been regularly doing this for at least decade now, both when it comes to you as a consumer, and you as a potential employee or renter.

    This is so mind bogglingly insidious to actually roll out because Delta is a regional hub monopoly and major common carrier nationwide, they very well could be the market setters for this kind of AI-price scalping. Like, we’re just going to throw out the concept of serving ‘a market segment’ and trying to land on a certain price:offering ratio to capture market share via demand curve plotting, inherently leaving space both at the fringes and center for competition.

    Now there is no competition. How does American or United price compare on routes or seat category, when there is no public price, but a personalized formula to maximize value extraction from each person? It’d be like trying to price compare at a close-envelope auction - you can’t.

    There already is a lot of opacity in the buying process like phased seat releases creating artificial scarcity, but this is next level. I can absolutely see Delta holding back seats instead of selling them to ‘low value’ individuals who have very elastic demand, and releasing seats early/only for those who’ll pay the fees. Want peace of mind knowing you locked in your flight 6-9mo ahead? Pay up 🔫

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

    Please tell me that this is a secret plot by Amtrak officials to increase their ridership and bring high-speed rail across the US? Because if it is, I'll 100% support it!

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

    Enshittification.

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

    I will pay exactly $0 and they will like it. 😬

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

  • There is no fucking way that that is sustained simply due to the fact that people would BURN THIS PLACE DOWN if companies start doing shit like that. No one has money as it is. I'm not convinced we're not going to burn it down as it is.

    These elites has truly lost the plot and are going so far down the comic book villain lane, they're going to start dying like comic book villains. Dunked in acid, frozen solid, crushed by their exploding submarine, eaten by their own rabid experiments... Who knows, but I'm excited to find out.

    Look around, dum dum. You see any shit burning to the ground? You think manipulating airline pricing is gonna do it?

  • This is so mind bogglingly insidious to actually roll out because Delta is a regional hub monopoly and major common carrier nationwide, they very well could be the market setters for this kind of AI-price scalping. Like, we’re just going to throw out the concept of serving ‘a market segment’ and trying to land on a certain price:offering ratio to capture market share via demand curve plotting, inherently leaving space both at the fringes and center for competition.

    Now there is no competition. How does American or United price compare on routes or seat category, when there is no public price, but a personalized formula to maximize value extraction from each person? It’d be like trying to price compare at a close-envelope auction - you can’t.

    There already is a lot of opacity in the buying process like phased seat releases creating artificial scarcity, but this is next level. I can absolutely see Delta holding back seats instead of selling them to ‘low value’ individuals who have very elastic demand, and releasing seats early/only for those who’ll pay the fees. Want peace of mind knowing you locked in your flight 6-9mo ahead? Pay up 🔫

    Yep.

    The more layers of the onion you peel back, the more you wanna cry.

    It just gets worse the greater level of detail you look at it in.

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

    How long before someone finds a glitch that allows them to trick the A.I. Into letting them get free seats or book the entire plane, etc.

  • Enshittification.

    Can something already shitty be enshittified more?

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

    going to have interesting results if powered by Grok......

  • How does a AI know whether you're rich or not?

    Your employer likely uses TheWorkNumber, that place lets anyone have all your data. Previous employers, W2s, dependents, SSN, salaries, bonuses, benefits, address, marriage status. Its given freely to corporations because fuck you this is America and this what we voted for.

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

    Up next, Delta sales down 37%, ceo launches investigation

  • Delta has a long-term strategy to boost its profitability by moving away from set fares and toward individualized pricing using AI. The pilot program, which uses AI for 3% of fares, has so far been “amazingly favorable,” the airline said. Privacy advocates fear this will lead to price-gouging, with one consumer advocate comparing the tactic to “hacking our brains.”

    Didn't Delta just settle a suit claiming they misused us gov taxpayer subsidies?

  • I travel for work and have flown a lot with all three major airlines. Delta is not the "go-to" airline. They all suck for different reasons, use what's most convenient for you. If you travel for work, pick one most convenient most of the time and build points, but just remember each one is shit.

    They sure seem to suck less than the others. American? Never. Do they just hate customers? United....if I have to.

    This kind of blows my mind. Globally The top three airlines for being on time in order were: Aeromexico, Suadi, and Delta.

  • On the one hand we seem to currently have some of the cheapest air tickets the world has ever seen. If you're willing to travel like cattle.

    On the other hand it feels like air travel is now like getting on the city bus and there's some guy vomiting in front of you and a screaming kid pissing on the seat behind you, all the while you're getting herded around like a cow, your stuff is at high risk of getting stolen with no recourse, and the airline is playing mind games about the best time to buy a ticket after sneaking in a bunch of clauses designed to get you to pay more later.

    Cheap tickets, and yet the longest travel time ever. No more showing up at the airport and walking onto the plane in less than 20 minutes anymore.