Artificial intelligence could help air travelers save a bundle

Researchers are using artificial intelligence to help airlines price ancillary services such as checked bags and seat reservations in a way that is beneficial to customers' budget and privacy, as well as to the airline industry's bottom line. When airlines began unbundling the costs of flights and ancillary services in 2008, many customers saw it as a tactic to quote a low base fare and then add extras to boost profits, the researchers said. In a new study, the researchers use unbundling to meet customer needs while also maximizing airline revenue with intelligent, individualized pricing models offered in real time as a customer shops. The results of the study will be presented at the 2019 Conference on Knowledge Discovery and Data Mining on Aug. 6 in Anchorage, Alaska. Airlines operate on very slim margins, the researchers said.