How digital data is giving airlines the power to sell you the fares they want
Sydney Morning Herald
by Chris ZapponeFebruary 13, 2026
AI-Generated Deep Dive Summary
Digital data is transforming how airlines set ticket prices, giving them the ability to target individual customers with personalized fares. This shift has been driven by the evolution of online booking systems, which began during the dotcom era and have since grown alongside advancements in artificial intelligence and consumer data collection. Airlines now leverage vast amounts of personal and behavioral data—gathered through website interactions, social media, and loyalty programs—to create detailed customer profiles. These insights allow airlines to offer tailored pricing strategies, effectively selling higher fares to certain travelers while offering discounted prices to others based on their perceived willingness or ability to pay.
The rise of online booking platforms like Expedia and Booking.com in the late 1990s disrupted traditional travel agent models, empowering consumers to compare prices and book directly. This shift not only reduced the risk of empty seats but also spurred the growth of low-cost carriers such as JetBlue and Virgin Australia. Airlines began charging separately for meals, luggage, and seat selection, maximizing revenue by catering to individual preferences and behaviors. The introduction of airline apps and direct consumer relationships further solidified this trend, enabling airlines to collect even more data on traveler habits.
As technology continues to evolve, the use of artificial intelligence in pricing strategies is expected to grow. Airlines are increasingly able to predict demand and adjust prices dynamically based on real-time data. For consumers, this means prices can fluctuate significantly depending on their booking history, search patterns, and personal information. While airlines argue that this approach improves efficiency and customer satisfaction by offering more personalized options, critics worry about potential price gouging and reduced transparency in the ticketing process.
The battle over digital data is reshaping the aviation industry, with legacy carriers and low-cost airlines both competing to gain a competitive edge. For travelers, understanding how their online behavior influences pricing is crucial for securing the best deals. As airlines continue to refine their data-driven strategies, the balance between customer convenience and airline profitability will remain a key focus of this ongoing transformation.
This trend matters because it highlights the growing role of technology in shaping consumer experiences across industries. For travelers, being aware of how their data is used can empower them to make more informed decisions about when and where to book flights, ultimately leading to a more competitive and transparent market.
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Originally published on Sydney Morning Herald on 2/13/2026