Welcome to blog 4 of this series!
Booking a trip can be a bit of
a gamble. Prices for flights, hotels, and other travel services can fluctuate wildly,
leaving travellers wondering if they are getting the best deal. And as
mentioned in my previous blogs about AI revolutionising the travel industry, we
will now further explore how AI is transforming travel pricing with the dynamic
algorithms and what it means for both business and travellers.
When talking about the AI-Driven
Dynamic Pricing it’s all about flexibility. Instead of offering a fixed price, the
AI algorithms take a much more sophisticated approach. It analyses a ton of
factors such as demand, availability, market trends, historical data and even
the competitor pricing to adjust prices in real time.
Basically, the dynamic pricing
works in a way that two travellers are booking the same flight or hotel room at
the same time, however, might pay different prices depending on the factors
just mentioned.
Travellers get the benefits of
finding better deals, AI algorithms monitor the prices and demand patterns in
the market and alert the customers when they predict the prices are going up or
down. They would be completely tailored to the customers preferences and would save
a good amount of your precious time as you’d have to skip spending hours on the
internet going through thousand different options.
An example of a company that have successfully leveraged AI-driven pricing is Booking.com.
They continuously adjust hotel,
flight prices based on factors such as demand, check-in time, room availability,
travel budget. Travellers have reported finding better deal whilst the company
is optimising it’s revenue.
Therefore, by understanding
how AI-Pricing, travellers can use this technology to their advantage ensuring
their next adventure is not only unforgettable but also affordable!
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