Delta Air Lines is changing how ticket prices are decided by letting artificial intelligence take the wheel. In a bold move, the airline is using AI to help determine airfare on some U.S. domestic routes. While only about 3 per cent of flights are currently covered, Delta plans to expand this AI pricing system to 20 per cent by the end of 2025. This new approach replaces traditional fare setting methods with real time pricing decisions, based on data like travel demand, competitor prices, and booking trends. Delta says the system developed by Israeli tech firm Fetcherr is already boosting revenue and efficiency.

How it works: AI-powered dynamic pricing

Delta’s AI system, developed by Israeli startup Fetcherr, analyzes a wide range of data in real time such as demand trends, market fluctuations, booking pace, and competitor pricing. Rather than using static fare charts, the AI suggests optimal prices that can adapt instantly to changing conditions.

Delta President Glen Hauenstein called it a “reengineering” of pricing science and noted early trials have led to “amazingly favorable unit revenues,” a metric used to gauge profitability per seat.

Concerns over fairness and transparency

Despite Delta’s optimism, the move has sparked concern among lawmakers and consumer advocates. Senators Mark Warner, Richard Blumenthal, and Ruben Gallego sent a letter to the airline questioning whether AI driven fare decisions could lead to “surveillance pricing.” Their concern: that AI might use personal data to charge individuals based on their perceived willingness to pay.

Delta responds: No personal data used

Delta has firmly denied using personal information to set prices. In a statement, the airline clarified that it does not use browsing history, financial details, or customer profiles. Instead, pricing is based on anonymized market data and traditional travel factors like origin, destination, date, seat class, and refundability. “All customers have access to the same fares,” a Delta spokesperson emphasized.

A broader trend in air travel?

Industry analysts suggest this is just the beginning. As airlines compete for profitability in a volatile market, many are likely to adopt AI tools to gain an edge. While dynamic pricing isn’t new, the speed and granularity offered by AI raises concerns about fairness and transparency.Consumer rights groups are keeping a close eye on the issue. A new bill in Congress, called the Stop AI Price Gouging and Wage Fixing Act, seeks to ban the use of consumer profiling in pricing and could impact how AI tools like these are used in the future.

FAQs

Q1. What is Delta’s AI pricing system?
A1. Delta is using artificial intelligence to set ticket prices based on real-time market data. The system is designed to optimize fares depending on demand, competition, and booking trends.

Q2. How could AI-based pricing affect travelers?
A2. Travelers may see more frequent changes in fares based on demand and timing. It might get harder to know when you’re getting the best deal.

Travelers heading to New York City now have one more tool in their arsenal to help them experience the city, an AI chat platform called Libby, short for Liberty. 

The new AI tool, available on New York City Tourism + Conventions’ website on the lower right-hand side, along with the city’s official Instagram and WhatsApp, is available in 60 different languages and will provide quick answers to any travel or tourism-related questions about the city. 

The responses travelers receive are personalized with extensive data from the tourism organization. 

“We’re pleased to unveil Libby, the official AI chat platform for exploring New York City,” says Julie Coker, president and CEO of New York City Tourism + Conventions. “As we gear up for America 250 celebrations and the 2026 FIFA World Cup, we’re proud to offer this free, innovative tool in 60 languages that empowers global visitors to craft unique itineraries and discover unforgettable experiences across all five boroughs.”

New York City will also promote Libby at 4,000+ LinkNYC screens at transit stops. Libby was created in partnership with GuideGeek AI technology from Matador Network. 

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NEW YORK, Aug. 5, 2025 /PRNewswire/ — Travelers visiting New York City can now rely on Libby, an AI travel genius that provides instant responses to any travel or tourism questions about the five boroughs in 60 languages. Libby is an initiative of New York City Tourism + Conventions, the official destination marketing organization and convention and visitors bureau for the five boroughs of New York City, and leverages GuideGeek artificial intelligence technology from Matador Network.

“We’re pleased to unveil Libby, the official AI chat platform for exploring New York City,” says Julie Coker, president and CEO of New York City Tourism + Conventions. “As we gear up for America 250 celebrations and the 2026 FIFA World Cup, we’re proud to offer this free, innovative tool in 60 languages that empowers global visitors to craft unique itineraries and discover unforgettable experiences across all five boroughs.”

Libby, short for Liberty, assists visitors, or locals exploring another borough, with tailored travel tips and itineraries, connecting people to local businesses, attractions and cultural experiences. The personalized, real-time responses are generated by AI trained on extensive data from NYC Tourism, coupled with over 1,000 integrations for travel information from GuideGeek’s award-winning technology.

The launch of Libby follows the success of Ellis, the first meetings and conventions planning artificial intelligence chat platform created for business event professionals, launched by NYC Tourism and GuideGeek earlier this year. The tool doubled traffic to NYC Tourism’s meeting website within the first month. Libby provides a broader consumer tool for travelers of all sorts.

“It is absolutely impossible to do or see everything in New York City, even if you visit often or live there,” says Matador Network CEO Ross Borden. “Libby helps visitors and those exploring a new corner of the city instantly find restaurants, activities and hidden gems that really align with their interests and preferences.”

To access Libby, travelers can visit nyctourism.com and click the chat icon in the bottom-right corner. They can also connect with the AI on WhatsApp or Instagram to ask questions and receive tips on the go while exploring the city. In addition, 4,000-plus LinkNYC screens at transit stops will promote the AI to visitors and locals.

About New York City Tourism + Conventions

New York City Tourism + Conventions is the official destination marketing organization (DMO) and convention and visitors bureau (CVB) for the five boroughs of New York City. Our mission is to invite the world and energize the City, building equitable, sustainable economic prosperity and community through tourism for the mutual benefit of residents, businesses and visitors. For all there is to do and see in New York City, visit nyctourism.com.

About Matador Network

Matador Network is the world’s No. 1 media brand for modern adventurers and creator of the award-winning AI travel genius GuideGeek. With more than 16 million followers across social media, Matador has become a leading travel brand through its production of article features, city guides, creator-first content and original videos. Matador is the top-ranking travel brand on TikTok and its videos are viewed more than 140 million times per month. It has content distribution deals with destinations throughout the world and major brands in the travel industry and beyond. matadornetwork.com

Media Contact:
Jason Simms
860-526-1555
[email protected] 

SOURCE Matador Network