AI takes the driver’s seat in travel pricing and service

How airlines, hotels and rental car companies are testing the limits of automation — and consumer trust

Artificial intelligence is reshaping how travel companies set prices, assign rooms, and even assess car damage. Delta, Hertz, and Marriott are among the first movers, raising questions about transparency, fairness, and the role of human judgment in the guest experience.

Key takeaways

• Delta’s AI pricing push: The airline plans to expand AI-driven dynamic pricing from 3% to 20% of domestic flights, sparking loyalty concerns and political scrutiny.
• Regulatory spotlight: Lawmakers are questioning whether AI enables “surveillance pricing,” while Delta denies using personal data to individualize fares.
• Hertz automation backlash: AI-powered damage scanners have led to disputed charges and customer frustration, highlighting risks when tech replaces human review.
• Marriott’s AI upgrades: The hotel group now automates room upgrades for loyalty members, streamlining fairness but reducing personal discretion and connections.
• Opaque processes: Startups like Fetcherr train models on vast datasets with little transparency, fueling skepticism among consumer advocates.
• Industry trajectory: Experts predict competitors will adopt similar AI systems, intensifying competition and lowering margins, even if customer trust wavers.

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