Finding Cheap Flights Harder? Major Airlines to Fully Adopt AI Dynamic Pricing, Bargain Hunters May Only Hope for Off-Season Deals

For many travelers, searching online across different platforms before departure to compare prices and find cheap airline tickets is an added pleasure of travel. However, with advancing technology, a harsh reality is approaching: the days of 'accidentally finding' low-priced tickets on popular flights may soon come to an end. This is because major international airlines, aiming to protect their profits, are now widely introducing artificial intelligence (AI) systems to accelerate seat price increases, reducing the chances of bargain hunting.

According to foreign media reports, large airlines have long relied on fixed pricing rules set by analysts—such as automatically increasing ticket prices by 20% when a quarter of seats on a flight are sold. In the future, with AI taking over pricing systems, hundreds of variables can be instantly calculated, allowing prices to be adjusted much faster. This will narrow the price gap opportunities that specialized 'ticket hunters' have exploited.

With rising costs in labor, maintenance, and aviation fuel, global giants from Delta Air Lines to Virgin Atlantic are accelerating the adoption of AI-driven dynamic pricing technology to maximize revenue from every flight. Bryan Terry, Managing Director of Alton Aviation Consultancy in New York, warns travelers to prepare psychologically: airlines' future pricing strategies will become smarter and faster, heavily leveraging technology to raise and lower ticket prices.

Due to the U.S. federal government shutdown, an increasing number of American airports are experiencing delays and flight changes. (AP)

Aviation analyst Guy Leitch adds that these machine learning models can more accurately predict actual demand by analyzing big data such as historical booking patterns, seat inventory, and seasonal trends. They can also track competitors' fares and capacity changes in real time, helping airlines adjust prices at the fastest possible speed. However, Leitch notes travelers need not worry excessively, as this AI technology may actually benefit those traveling during off-seasons or on low-demand routes, since airlines will use AI to lower prices instantly, stimulating bookings and reducing empty seats.

Algorithms Encourage Passengers to Reschedule for 'Extra Profit'

Beyond traditional dynamic pricing, emerging tech companies are extending AI's reach into post-sale revenue expansion. Take Israeli startup Fetcherr, for example, which now serves as an AI platform for over ten airlines, including Canada's WestJet and Brazil's Azul. Its co-founder, Uri Yerushalmi, says the algorithm analyzes hundreds of variables and instantly adjusts ticket prices the moment market conditions change.

Another company based in Atlanta, U.S., Volantio, assists clients like Japan Airlines with 'post-sale seat adjustments': when demand surges for a popular flight close to departure, the AI system proactively identifies passengers who booked early at low prices but may be willing to change their plans. It then sends them emails offering subsidies or incentives to encourage them to reschedule to less crowded flights.

At Atlanta's Hartsfield-Jackson International Airport, a Delta Air Lines commercial aircraft sits on the tarmac. (AP)

Once passengers are successfully persuaded to switch flights, the freed-up high-demand seats can be resold at a premium of up to $1,000 (approximately NT$32,500) to last-minute business travelers who cannot change their schedules.

While AI systems are becoming increasingly widespread and bring substantial revenue growth to airlines, they have also raised concerns from consumer groups and U.S. lawmakers, who fear companies may eventually use personal data such as browsing history or income to implement discriminatory pricing. In response, Delta Air Lines and technology providers like Fetcherr have clarified that their current AI models rely on overall market data, not personal information.

For airlines, in the current environment, boosting revenue is far more feasible than cutting costs, and AI is the ultimate secret weapon enabling them to continuously push revenue limits.