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.”
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.
…
This is horseshit.
In Economics, the entire concept of setting specific prices for specific market demographics is literally called ‘price discrimination.’
https://www.investopedia.com/terms/p/price_discrimination.asp
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 🔫
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.
It’s only “funny” if they don’t get away with it.
Otherwise, it’s just more depressing shit to throw on the pile
I have an Econ degree so my sense of (extremely dark) humor at this point is basically:
‘billions must die, but actually’
Like I don’t know what to do at the cuts to SNAP, Medicare, and Section 8, the resumption of student loan payments, the tariffs and destruction of our farming and construction industries via ICE raids… other than just laugh.
We’re looking at Great Depression 2.0, a Holodomor-like, engineered-through-stupidity-and-malice famine.
I am at this point expecting millions, potentially tens of millions of Americans to die or be reduced to literal, actual debt slaves, or be incarcerated for crimes deriving from being forced into utter destitution… all that within this 4 year Trump term, unless there is an actual revolution.
Maybe if the Dems sweep the midterms (if Trump/the Reps even allow them to happen without massive ratfuckery) some of the bleeding can be stopped, but this situation is looking extremely fucking bad.
Oh god. I forgot about climate disasters.
Welp, alcoholism runs in my family, so, time to go look at cute puppies or something.
About half of Americans are literally debt slaves already
I know that as of 2024, its about 10 to 15% of Americans with a negative net worth.
More debt than savings/investments.
So… thats your floor for literal debt slaves.
But uh, hah hah HAH,… the housing market is now crashing.
And the vast majority of Americans have a their house as their largest… investment/debt liability.
So… yeah. Probably gonna be heading closer to 50%.
Oh right, and then also every one behind on their student loans is now getting sent to collections, grace period over…
Yeah its all fucked, so fucked I don’t even think anyone has a holistic view of all the precise data, at this point.
Interesting. Hotels do this all the time, jacking up prices 100s of % as occupancy increases. And of course if there are events or concerts happening. Supply and demand, sure I guess. Still feels scummy.
My MIL’s health hasn’t been so great in the past year so we’ve been visiting her frequently. She also lives in a rural town whose nearest airport is served only by Delta. Can’t wait for those fuckers to notice we fly here often and stick it to our wallets.