A Wren Says

I’m well aware of dynamic pricing. You know? How different sporting events for the same team will differ based on their opponents and seats in the stadium. Or how the room rate depends on when you book, overall vacancies, and the hotel’s projections on how popular a particular time period will be for travelers. But pricing based just on me? That scares me .

As a self professed slow and reluctant adopter of AI who deeply mistrusts its possible uses, I am already biased against the technology. However, Delta’s recent announcement that it hopes to use AI to individualize pricing for its flights also has privacy experts concerned. As a frequent flier with the brand who has given loyalty to the airline, it concerns me, too. Would I be subjected to higher prices if they sense that I am just going to buy the flight anyway? Would they start price gouging me because they think they can get away with it?

Here’s the thing, when the CEO spoke about this updated strategy to shareholders, he did so excitedly. He cheered them with the thought of how much money they would make. I don’t think he thought at all about the optics. I don’t think he thought about how everything you say is public information these days. I don’t think he thought about how teasing that he would start overcharging customers would land in this era where people are becoming more price sensitive, when air travel demand has started trending downward, when international travelers are already becoming weary of visiting the U.S., and where there are increasing privacy concerns with how companies are using our data. I don’t think he thought about any of that at all. And now he will have to.

I am totally expecting an e-mail to come through about how Delta is committed to protecting customer data and how it values its customers. I imagine there will be some statement from a press conference pushed in all the media outlets. All that being done, the fact will still remain that the evidence is out there about how they are truly thinking about shaking down their customers for all the money they’ve got. Or at least that’s the lasting impression. 

Though, I’m not a public relations professional, I believe Delta should take this seriously as a PR crisis. They need to strategize about how they repair and maintain their image as one of the most respected airlines in the U.S. That goes beyond soundbites and talking points. That means doing the deep work of considering whether their strategy will truly help them reach their goals, with one of those being customer loyalty and satisfaction. Because if customers don’t trust you they won’t shop with you, no matter beautiful your pricing plan may be.

For more on this and how this change could be bad for customer perception, read this article by Roger Dooley on Forbes, titled “Delta AI Pricing Could Trigger A Customer Trust Crisis. Here’s Why.”