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AI Pricing Is Coming to Airlines Near You

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How do airlines calculate the fares that you see when booking a flight? The answer varies from airline to airline, and there are some mysteries in the process, as the controversy that erupted last month over solo travellers being charged more than people traveling in groups indicates. With AI gaining ground in various industries, it’s not exactly a shock to hear that airlines are using this technology to set some fares, but the extent to which at least one is embracing it might come as a surprise.

That airline? Delta. In an article for One Mile at a Time, Ben Schlappig has more details on what Delta is currently doing — and what their plans are going forward. Citing comments made by Delta’s president, Glen Hauenstein, on a recent earnings call, Schlappig writes that Hauenstein shared plans to dramatically increase the role AI plays in calculating airfares.

“[T]oday, we’re about 3% of domestic. Our goal is to have about 20% by the end of the year, and that’s a goal,” Hauenstein said on the call. “I mean, we can report back on what the actual numbers are. But you have to train these models as you might and you have to give it multiple opportunities to provide different results. So we’re in a heavy testing phase.”

Delta has partnered with the company Fetcherr, whose website touts their use of the “Large Market Model (LMM), an adaptable AI engine that forecasts demand and market trends with precision, empowering real-time decision-making.” Last year, Fetcherr raised $90 million in funding for its products. “Fetcherr employs AI to generate optimal market moves, dynamically optimizing pricing and automating real-time publishing of prices,” the company’s CEO, Roy Cohen, told TechCrunch last year.

The rise of AI technology isn’t the first time airlines have utilized algorithms to calculate airfares. The travel site Kayak first rose to prominence in part because of its ability to predict whether a given fare would go up or down in the coming weeks or months.

That raises the question: how will this new development differ from previous algorithmically-generated fares? Schlappig’s analysis suggests that it won’t be great for travelers. “I’m also not sure it’ll have a radical impact, simply given the competitive landscape,” he added. If you’re traveling via Delta and you notice a dramatic change in airfares from last year to this year, this new technology might be at the root of it.





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What if Airbnb Builds the Killer AI Travel Search App?

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Airbnb is preparing to rebuild its internal search engine with generative AI at the core. In a recent job posting for a search infrastructure engineer, the company outlined plans for a “next generation search platform” designed to support “generative AI (large language model) use cases.” 

Candidates with expertise in search and recommendation systems are encouraged to apply, and experience with GenAI or LLMs is listed as a preferred qualification.

Search is one of the most critical components of Airbnb’s business. It determines how guests discover homes and experiences, and how hosts reach customers. And while Airbnb has not made any public announcements about an AI-native search product, the technical scope and job description point to ambitions beyond incremental improvements. 

The listing suggests Airbnb is looking to reconstruct its core search product to accommodate AI. The new platform is described as one that will “power different products at Airbnb,” suggesting that generative AI could become a foundational layer across the company’s marketplace. 

In response to a request for comment, an Airbnb spokesperson said the company is “always working to enhance the overall Airbnb experience” and is “actively seeking talented individuals who share our mission to transform the way people travel.”

Give Me a Room With a View

If Airbnb succeeds in launching a functional AI-powered search system, the move could change how travelers interact with the platform. Traditional travel search engines rely on structured inputs: location, dates, price filters, and a fixed set of amenities. Generative AI has the potential to interpret natural language queries, understand user context, and return relevant results with fewer steps and less manual sorting.

For example, instead of filtering by location and bedroom count, a guest might enter a query such as “a quiet place in the mountains with fast Wi-Fi, a hot tub, and a view” – and receive listings that match even if the keywords don’t align exactly. 

Several other travel companies have begun integrating AI tools into their platforms, including chat-based trip planning assistants and personalization features.

When Data is King

But Airbnb may be in a stronger position than some of its competitors to make that shift. The company has access to a large volume of structured and unstructured data: millions of listings with detailed attributes, user-generated reviews, booking behavior, search history, and messaging between hosts and guests. This data could support the training or fine-tuning of models capable of delivering more personalized and accurate search outcomes.

Airbnb also owns its entire supply-side platform. Unlike online travel agencies that depend on inventory from third-party providers and hotel chains, Airbnb’s listings are user-generated and directly managed on its system. That vertical integration provides a cleaner dataset and more flexibility in how results are ranked and surfaced, key advantages for any machine learning application.

The introduction of a new AI-native search system could also create competitive pressure in the broader travel sector. Google, Booking Holdings, and Expedia Group have all made recent announcements about generative AI experiments, including itinerary generation and trip planning tools. 

Airbnb CEO Brian Chesky has previously hinted at AI’s potential role in product discovery, referring in past earnings calls to a vision of Airbnb as a kind of intelligent travel concierge. A generative AI system could take that vision further, allowing for contextual, conversational discovery that adapts to different user intents in real time.

The company has not disclosed what timeline it is working toward, what specific models it may be using, or whether it intends to partner with external AI vendors or develop proprietary solutions. The job posting does not mention OpenAI, Anthropic, Google, or any of the major LLM providers by name.

Beyond the Short-Term Rental

What if Airbnb is thinking bigger than site search? There’s a huge world of travel beyond short-term rental listings and its new experiences product. 

Airbnb’s focus on design and its ability to attract talent put it in a position to compete in ways that other travel brands can’t. 

Chesky also has a strong relationship with Sam Altman, CEO of OpenAI. They’ve known each other since the 2000s, first at Y Combinator, the startup accelerator. And Altman has talked about the counsel Chesky gave him at OpenAI.  

Airbnb has always had ambitions beyond booking a room, and the focus on AI search will help it compete against players like Expedia when it comes to airline search or any other part of the travel journey.



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Summer holidays are being hijacked by bots scraping fares, hoarding tickets, and causing online chaos

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  • Bots now dominate the threat landscape for travel platforms during peak booking periods
  • Fake demand created by bots leads to inflated prices and fewer options for real users
  • SMS pumping attacks are draining funds and delaying key notifications for travelers

As summer travel hits its peak, a new concern is emerging that has little to do with rising fuel costs or demand-driven pricing.

A growing volume of automated traffic is now being blamed for driving up flight prices, disrupting bookings, and damaging the experience for travelers, experts have warned.



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With focus on AI, sustainable travel Arya Niwas organises Openscapes 2025 in New Delhi

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The opportunities and challenges that issues like artificial intelligence, sustainability and experiential travel pose to the tourism industry in India and overseas were highlighted at Openscapes 2025, a travel conclave in New Delhi on Saturday.

Organised by Arya Niwas, a hospitality group based in Jaipur, the conclave served as a participative platform to explore transformative ideas for the tourism sector, addressing pressing issues such as sustainability, experiential curation, the role of artificial intelligence (AI), and the integration of responsible practices into the travel experience.

Drawing stakeholders from across India’s hospitality industry, the conclave was organised with the core theme of Projecting India and Rajasthan with a stronger, more meaningful narrative.

“This is the first conclave. It is called Openscapes. We hope that we will be having more such dialogue-based conclaves on travel. There is a need for us to behave as one in the travel industry and to move forward together because the ultimate aim is to serve the guests and make the guests win,” Pooja Bansal, Owner and General Manager, Arya Niwas, told India & You on the sidelines of the event.

The urgency of the issues raised at the meeting was underscored by leading tour operators, who highlighted that Indian tourism, particularly in recent years, “has not been sustainable and things have gone really, really bad.”

The conclave drew stakeholders from across India’s hospitality industry

“When we talk about sustainability with experiential tourism, the experience at the grassroot level, meeting local people with a bit of sustainability, offers eye-opening encounters. Yet, there are challenges,” Navneet Arora, Managing Director, VINString Holidays, a travel agency in New Delhi, told India & You.

The meeting illustrated both obstacles and achievements in rural and urban experiential tourism. Operators cited instances where visitors’ immersion in heritage neighbourhoods and private homes fostered mutual pride among locals and tourists. However, they also warned against approaches that leave rural residents feeling like “monkeys in the zoo,” underscoring the necessity of responsible, respectful interaction, something now addressed by ensuring a share of tour proceeds benefit the communities involved. Sustainability, participants argued, extends well beyond eco-friendly rhetoric.

The conclave highlighted innovative tour formats, slow tourism, creative workshops and direct engagement with artisans, as pathways for deeper, more rewarding guest experiences.

“I think that is the call for the future, because automation has to come in. If we are not doing automation today, we are backwards. AI is important. The event opens up eyes for a lot of people. Difficult, but yes, AI and sustainability are important and doable,” Arora added.

“The interpretation of sustainability has become very cliché. This was a session to break that,” said Bansal.

Participants at the Openscapes 2025 called for a sustained dialogue, with suggestions for sector-wide conventions and targetted sessions on marketing and AI and more collaborative initiatives.



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