Podcast Summary

Smart Travel: Upgrade Your Getaways

Episode: AI Travel Pricing Is Here: How Airlines and Hotels Could Quietly Raise Your Rates
Date: November 19, 2025
Hosts: Sally French & Tess Vigland (in for Megan Coyle)
Special Guest: Lindsey Owens (Executive Director, Groundwork Collaborative)

Episode Overview

This episode demystifies how artificial intelligence (AI) is rapidly changing travel pricing – often not to travelers’ advantage. Hosts Sally French and Tess Vigland talk big travel deals, dissect industry changes, and, most crucially, speak with economic expert Lindsey Owens about how AI is enabling airlines, hotels, and even car rental companies to quietly raise rates and target you based on your profile. The conversation dives into how these “surveillance pricing” practices work, potential consumer protections, and what travelers can realistically do to protect their wallet.

Key Discussion Points & Insights

1. Travel Deals & Loyalty Programs

(01:00–07:29)

• Hosts share current travel deals (e.g., Hyatt 30% off for members, Norwegian Cruise Line’s 50% off sale plus all-inclusive perks).
• Highlight the trend toward longer travel windows for deals, but note the increasing prevalence of member-only and promo code offers to drive direct bookings.
• Beware “stackable perks”: Many luxury hotels now add perks (like spa credits) but maintain higher up-front rates for a sense of exclusivity.

Notable Quotes:

“Many of these deals don't require you to book right away... plenty let you book far out into 2026.” — Sally French (05:35)
“The whole stacking thing gives me a headache. I wish I could take advantage... it just makes me want to eat ice cream and watch Netflix.” — Tess Vigland (07:02)

2. Holiday Travel Trends & Airline Policy News

(07:30–13:46)

• 2025 Thanksgiving forecast: Record-breaking travel crowds expected, with bookings up 2.2% over 2024 (08:00).
• FAA has ended emergency flight reductions from the recent government shutdown; flight delays and cancellations are back to their “normal” low levels.
• Pro tip: Have backup plans – alternate airports, consider trains for mishaps (09:15).

Hilton Program Changes (10:20)

• Easier to earn Hilton Gold and Diamond status (requirement for Gold now 25 nights/year instead of 40).
• New ultra-elite tier: Diamond Reserve (80 nights + $18,000 spend/year), unlocks “confirmable upgrade awards” and guaranteed 4pm late checkout.

3. Tech News – Digital IDs for TSA

(14:20–16:49)

• Apple is rolling out Digital ID (in beta at 250+ airports), letting you use your U.S. passport for ID in Apple Wallet—helpful for those lacking Real ID-compliant driver’s licenses.
• All data is encrypted and stored locally on your device. You review exactly what’s shared at each use.

Quote:

“Digital ID is not a replacement for your physical passport... this is just for not having that Real ID–compliant driver’s license for domestic use.” — Sally French (15:14)

4. Interview: Lindsey Owens on AI and Surveillance Pricing in Travel

(20:30–54:27)

How AI Is Transforming Pricing

• Airlines have long used algorithms for “dynamic pricing” (prices rise as supply falls or demand spikes).
• AI “supercharges” this by running real-time market experiments and learning the most a user will pay—expanding from broad trends to targeting individuals (“surveillance pricing,” or “personalized pricing”).
  • Example: Delta's partnership with Fetcherr to “see just how high we can increase prices on a given route without losing market share.” (24:54–25:57)
  • Fetcherr promotes moving from dynamic to personalized pricing—using all data you give via loyalty profiles, browsing, etc., to extract the highest possible fare from you.

Notable Quotes:

“Delta knows a lot about you... how many people are in your family, where you travel for Christmas, maybe your finances because you have a Delta credit card.” — Lindsey Owens (29:46)
“What's frightening is...you hovered over that business class ticket, you’re really tempted...the next day it comes back at a higher price point because they think you’re pretty interested.” — Lindsey Owens (30:19)

• Huge consumer backlash caused Delta to scale back (for now), but the future industry trend could be widespread, especially if multiple major carriers join in (34:24).

Can Consumers Out-Smart AI?

• Comparison shopping is harder: airlines muddy “fare classes” and use “dark patterns” to thwart apples-to-apples price comparisons.
• “Loyalty” programs may hurt you: Logging in may give them the data to charge you more, not less.
• It shouldn’t be on consumers to “beat the machine.” Real change depends on regulators and public policy. The Biden administration pushed for more protections, many of which are now paused or rolled back (37:24–40:23).
• AI-driven dynamic pricing is already used in both cash fares and award bookings with points/miles (40:53).

Extension of AI in Hotels & Car Rentals

• Hotels: Similar dynamic AI pricing and “membership incentives” to extract maximum spend.
• Rental cars: Companies like Hertz use AI + imaging to assess vehicle damage, then auto-bill you with little human oversight—often tacking on predatory “service fees.” (46:42–49:32)

The “Good, Better, Best” Pricing Principle

• Airlines supercharge classic revenue techniques:
  • By multiplying fare classes within cabins, they capture various consumer types, segmenting “good,” “better,” and “best” tiers mainly by providing or removing perks.
  • Makes price comparison and informed shopping even harder. (42:04–44:41)

Policy and the Road Ahead

• State-level attempts (e.g., NY requires disclosure of “surveillance pricing”), but calls for broader national debate on how much data companies should be allowed to use in price-setting (50:35).
• Public outrage—like with World Cup dynamic pricing—may eventually force greater transparency, even short of regulation.

Timestamps for Important Segments

• 01:00: Introduction to travel deals & loyalty trends
• 07:29: The challenge of “stacking” perks and consumer fatigue
• 08:00: Thanksgiving/holiday travel statistics and forecast
• 10:20: Overview of Hilton’s new status tiers
• 14:20: Digital ID for TSA—how it works, privacy safeguards
• 20:30: AI myths vs. reality in travel planning tools
• 24:54: Lindsey Owens explains dynamic vs. surveillance pricing
• 29:46: How much airlines know about you & why it’s risky
• 34:24: Industry reactions and risk of normalization of AI pricing
• 37:24: Limits of consumer “hacks” & need for regulation
• 40:53: AI-driven price changes in loyalty/points bookings
• 42:04: Breakdown of fare class complexity for price discrimination
• 46:42: Rental car companies’ use of AI to bill for damage
• 50:35: Policy outlook and why the next moves matter
• 54:18: Lindsey’s hot take – consumer backlash may eventually force industry change

Memorable Moments & Quotes

• On AI Itineraries Failing:

"I asked ChatGPT... it was literally sending me to different islands." — Sally French (20:35)

• On surveillance pricing:

“Personalized pricing is... not really fully based on broad aggregate factors of supply and demand, it’s what you individually might be willing to pay…” — Lindsey Owens (27:31)

• On “gaming the system”:

"It should not be every individual consumer's job to beat the machine." — Lindsey Owens (37:24)

• On comparisons to casino tactics:

"They use things called dark patterns... like a casino, keeping you from seeing other offerings." — Lindsey Owens (44:41)

Takeaways & Actionable Advice

• Comparison shop incognito: While not a guarantee, using private browsing and avoiding logging in may limit AI’s ability to personalize (and raise) your price.
• Know the limits of loyalty: Sometimes, airline and hotel programs are using your profile against you — weigh the benefits vs. potential downsides.
• Demand transparency: Review fare rules, look for bundled total prices, and support policies championing upfront pricing.
• Report abuses: If you spot or suspect discriminatory or “surveillance” pricing, lodge complaints with regulators to build the case for stronger consumer protection.
• Stay engaged: As AI expands across the economy, push for clear guidelines about the use of personal data in pricing.

Conclusion

This episode delivers a sharp, accessible primer on the evolving, sometimes alarming, landscape of AI-driven travel pricing. It acknowledges the reality: while there are small ways to protect yourself, travelers’ best hope lies in collective action for transparency and fairness. Meanwhile, savvy consumers should keep their eyes open—and their browser caches cleared.

For more tips and travel news:
Follow Sally @savewithsally and Megan @mileswithmeganco on Instagram and TikTok.