'AI may help air travellers save money'

Researchers, including those of Indian-origin, are using artificial intelligence (AI) to help airlines price services such as checked bags and seat reservations in a way that is beneficial to customers, as well as to the airline industry.

The researchers at University of Illinois at Urbana-Champaign in the US used unbundling to meet customer needs while also maximising airline revenue with intelligent, individualised pricing models offered in real time as a customer shops.

Airlines operate on very slim margins, the researchers said.

While they earn a considerable portion of their revenue on ancillary purchases, unbundling can provide cost-saving opportunities to customers, as well.

Customers don't have to pay for things they don't need, and discounts offered to customers who may otherwise pass on the extras can help convert a "no sale" into a purchase.

"Most airlines offer every customer the same price for a checked bag," said Lavanya Marla, a professor at University of ...