Travel Perks Under Scrutiny: AI-Powered Pricing and Inspection Practices Raise Concerns Over Fairness and Transparency

Delta Air Lines and Hertz are using AI to make decisions on pricing and vehicle inspections, raising concerns about fairness, transparency, and privacy. Delta's AI-powered fare pricing pilot has sparked criticism, with lawmakers questioning its potential for discriminatory pricing. Hertz uses AI photo scanners to flag vehicle damage, leading to charges for customers. Consumer advocates warn that AI-powered systems could unfairly burden travelers, particularly those lacking technical knowledge. Experts advise consumers to book fares using different browsers, document rental vehicle condition, and stay alert to unexpected charges.

Delta Air Lines and Hertz are leveraging artificial intelligence (AI) to make decisions on pricing and vehicle inspections, which has raised concerns about fairness, transparency, and privacy. Delta's AI-powered fare pricing pilot, in particular, has drawn criticism from lawmakers who question its potential for discriminatory pricing. Meanwhile, Hertz's use of AI photo scanners to flag vehicle damage has led to charges for customers, prompting warnings from consumer advocates about the potential for unfair burdens on travelers.

Delta Air Lines, in partnership with Israeli startup Fetcherr, plans to expand its AI-based revenue management technology across 20% of its domestic network by the end of 2025. The AI tool analyzes vast datasets, including demand patterns, competitor pricing, and weather conditions, to suggest optimal prices [1, 2]. However, concerns persist about the potential use of personal data to charge individuals based on their perceived willingness to pay. Democratic senators, including Ruben Gallego, Mark Warner, and Richard Blumenthal, have expressed worries that AI might use personal data for this purpose [2].

Hertz, on the other hand, employs AI photo scanners to flag vehicle damage. While this technology aims to streamline inspections, it has led to charges for customers who claim their vehicles were not damaged. Consumer advocates warn that AI-powered systems could unfairly burden travelers, particularly those lacking technical knowledge.

Experts advise consumers to take proactive steps to protect themselves. For instance, they recommend booking fares using different browsers to avoid personalized pricing and documenting the condition of rental vehicles to prevent unexpected charges. Staying alert to any changes in pricing or inspection practices can also help consumers avoid unnecessary expenses.

As Delta and Hertz continue to integrate AI into their operations, the broader implications for the industry include potential antitrust scrutiny and a reckoning on data ethics. Industry watchers predict that by year-end, AI could handle up to 50% of fare decisions industry-wide, raising questions about consumer protections and the potential for abuse [3].

Delta's strategy represents a calculated bet on technology to outpace rivals amid rising fuel costs and economic uncertainty. The airline's cautious approach to AI pricing, which avoids using personal data, aims to balance innovation with consumer trust. However, the success of this strategy will depend on how well Delta manages the delicate balance between profit maximization and fairness in air travel.

References:
[1] https://www.npr.org/2025/08/01/nx-s1-5479180/use-of-ai-in-airlines-ticket-pricing-raise-concerns
[2] https://www.ainvest.com/news/delta-airlines-embraces-ai-dynamic-pricing-concerns-fairness-transparency-2508/
[3] https://www.ainvest.com/news/ai-pricing-paradox-delta-ethical-gambit-algorithmic-arms-race-aviation-2508/