Want to snag cheap flight tickets? Experts warn AI dynamic pricing may become the norm: tickets during these periods could get pricier

It may become increasingly difficult to find cheap last-minute flight tickets. According to Bloomberg, airlines such as Delta Air Lines and Virgin Airlines are expanding the use of AI-powered dynamic pricing tools. These systems continuously adjust ticket prices based on booking progress, market demand, remaining seats, and competitors’ pricing. This means that low-price windows on popular flights, which occasionally appeared in the past, may now be filled more quickly.

From fixed thresholds to rapid computation

In the past, airlines adjusted fares based on pre-set conditions—such as moving to the next price tier only after a certain percentage of seats were sold. While this approach responded to demand, the logic was relatively fixed, allowing passengers to sometimes identify pricing patterns.

With AI, pricing systems can simultaneously process multiple data points—including historical booking trends, current seat availability, seasonal demand, route-specific market changes, and competitors’ prices—and recalculate fares in much shorter intervals. Airlines aim to align seat prices more closely with what passengers are willing to pay at any given moment, while also addressing rising operational costs.

Brian Terry, an analyst at an aviation consultancy, believes AI’s main advantage lies in improved prediction and response speed. When demand for popular flights rises rapidly, the system can detect market shifts earlier, reducing the likelihood of airlines selling seats at suboptimal prices.

Low-price opportunities may shrink further during peak seasons

AI-driven pricing doesn’t mean ticket prices only go up. However, on peak travel seasons, popular departure times, or high-demand routes, low fares may be raised more quickly. In the past, passengers occasionally benefited from delays between booking activity and price adjustments. As systems become faster, these pricing gaps are likely to diminish.

Terry notes that when the system detects rising booking demand, airlines can raise prices more swiftly. Conversely, if market response is weaker than expected, prices may be lowered immediately. In other words, AI doesn’t simply push prices up—it enables airlines to adjust prices faster in response to demand.

Lower fares may still be available during off-peak times

If a flight has poor booking performance or demand for a route falls below expectations, AI may proactively lower prices to boost load factors. Therefore, during off-seasons, off-peak hours, or on less popular flights, fares below average levels may still appear.

Aviation analyst Guy Leitch also points out that airlines have always adjusted prices based on market demand. AI doesn’t create an entirely new system but refines existing revenue management mechanisms and allows faster responses to market changes.

Even after purchase, airlines can re-optimize seat revenue

AI’s application extends beyond the booking process. Volantio, an aviation technology company, offers a platform that identifies passengers more likely to accept flight changes. Airlines can then offer vouchers or other compensation to ask if travelers would be willing to switch to alternative flights.

If passengers accept, seats on popular flights can be freed up and resold to last-minute bookers willing to pay higher fares. Volantio believes this approach increases airline revenue while providing compensation to flexible travelers.

Personalized pricing raises privacy concerns

As AI pricing tools mature, concerns are growing over so-called 'surveillance pricing.' Some U.S. consumer groups and lawmakers worry that if companies begin using browsing history, income data, or other personal information to assess payment ability, different travelers could see different prices for the same seat.

Currently, debates focus on whether future personalized pricing models will universally raise prices or benefit some travelers in certain cases—no clear conclusions have been reached.

For consumers, booking travel dates early, maintaining schedule flexibility, and avoiding high-demand periods remain the best ways to secure fares below average levels.

FACT BOX

  • Source: PR Times
  • Category: Survey
  • Organizations: Volantio