AI revolutionizes the price dumping: How fair is that for travelers?
AI revolutionizes the price dumping: How fair is that for travelers?
St. Gallen, Schweiz - The application of artificial intelligence (AI) in the area of pricing has become more important in tourism and hotel industry. Today is May 14, 2025 and in a current podcast by Reise Vor9 IT expert Andreas Wulfes, CEO of Neusta Data Intelligence, reports on the effects of dynamic prize formation and the role of AI in this process. Dynamic pricing is not a new concept, but has increasingly expanded from the previous aviation applications to other areas of the tourism industry.
Wulfes explains that dynamic pricing is optimized by AI-based models that differ from traditional pricing models in several aspects. Typical data sources for training these AI models play a central role in making well-founded price decisions. At the same time, the podcast addresses the reliability of these data sources, which are essential for pricing.
advantages and limits of the AI in pricing
The advantages of AI in dynamic pricing are diverse. Tour operators, hotels and airlines can benefit from precise adjustments to the prices in real time based on request, competitive conditions and other factors. At the same time, however, Wulfes indicates the limits and risks of these technologies. Aspects such as fairness, transparency and the brand image are crucial to maintain customer satisfaction. A pure AI-based pricing could possibly threaten customers' trust.
In order to meet these challenges, Wulfes recommends a combination of AI applications with the human judgment and the experience of Revenue managers. This hybrid model could help combine the strengths of the AI with personal customer contact and understanding.
regulatory and ethical considerations
Another important aspect that Wulfes appeals are the regulatory and ethical considerations that accompany every application of AI in pricing. Data protection and the question of price discrimination represent challenges that may not be ignored in the tourism industry. These considerations are crucial in order not only to meet legal requirements, but also to gain and maintain the trust of consumers.
In summary, it can be said that the integration of AI into the dynamic pricing is a promising approach to modernize corporate strategies in tourism. In addition, an investigation by Bieger et al. (2002) that the business models of the aviation industry have changed fundamentally, which also has profound effects on the entire tourism sector. According to Springer , innovative solutions in the field of pricing will in future be essential to remain competitive and to react to the changing needs of consumers.| Details | |
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| Ort | St. Gallen, Schweiz |
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