Major travel companies like Delta, Marriott, and Hertz are using artificial intelligence to change how we travel, from determining airline ticket prices to assessing rental car damage and deciding who gets room upgrades. While companies promise better experiences, frequent travelers worry about lost loyalty and opaque pricing.
Article contents:
- Delta’s dynamic pricing: Does your loyalty not matter?
- Opaque process: Concerns over “surveillance pricing”
- Hertz smart scanners: Automated damage reports
- Marriott and automated upgrades: The end of personal relationships
- Travel agent perspective: Embracing change
- Conclusion: The future of travel… more efficient and less human?
- Frequently asked questions
Delta’s dynamic pricing: Does your loyalty not matter?
When Delta Air Lines CEO Glen Hauenstein said he wanted to scale AI-driven pricing to nearly 20% of domestic flights, it alarmed frequent travelers like Jason Kao. Kao says, “When prices are much higher because AI is used to set prices, I might not get a good deal. Is there a big reason for me to stay loyal to Delta?” Customers fear that AI-enhanced dynamic pricing will undermine the value of loyalty programs.
Opaque process: Concerns over “surveillance pricing”
The move has raised concerns over “surveillance pricing,” a term for companies using personal data to charge different customers different prices. Although Delta has denied using personal data, the lack of clarity around how algorithms from companies like Fetcherr—which partners with Delta—work has lawmakers and consumers worried. Representative Greg Casar says, “In a worst-case scenario, an airline could increase your ticket price because it learned you Googled a family member’s obituary and are desperate to get to a funeral. We cannot allow that to happen.”
Hertz smart scanners: Automated damage reports
At six locations nationwide, car rental service Hertz is using AI-powered scanners to detect damage to its vehicles. In the event of a noticeable scratch or crack, the system automatically sends a report to the traveler and requests payment. This automated process has led to complaints from customers who were billed for barely visible damage and found it difficult to reach a human to contest the charges.
Marriott and automated upgrades: The end of personal relationships
Starting July 14, Marriott is using artificial intelligence to assign hotel rooms and determine which loyalty members get upgrades. While Marriott says this automated system will transform the process from a manual task into a quick one completed in seconds, some frequent travelers fear this could eliminate the value of personal relationships they have built with hotel managers over the years to secure upgrades.
Travel agent perspective: Embracing change
On the other hand, some travel professionals, such as Greg Guiteras, CEO of Travel Leaders, believe AI can make things fairer. Marriott’s automated upgrade system might eliminate the need for “connections” and make it easier for customers to get rewards if they have earned them. Guiteras says, “It’s going to be there. There’s no need to fight it. In fact, I support embracing it.”
Conclusion: The future of travel… more efficient and less human?
The integration of AI into travel is a double-edged sword. On one hand, it promises increased efficiency and potential fairness. On the other hand, it raises real concerns regarding transparency, privacy, and the loss of the human touch that has been part of travel for years. As the industry adopts these new technologies, travelers will have to adapt to a new world where an algorithm may decide whether they get a good deal or not.
Frequently asked questions
Do airlines use my personal data to determine ticket prices?
Delta denies this, but consumer advocates and lawmakers are worried that opaque AI models could open the door to “surveillance pricing” in the future.
How does the Hertz damage assessment system work?
The system uses high-definition cameras to scan the car when it is returned and compare the photos to its condition at the time of rental. If the AI detects new damage, it automatically sends a report and a bill to the customer.
Will AI make getting hotel upgrades more difficult?
It may make it more difficult for those who rely on personal relationships, but it could make it fairer for loyalty members who deserve an upgrade based on objective criteria applied by the system.
