Airlines Could Start Charging Based On Online Shopping Habits, Experts Say
Airlines Could Start Charging Based On Online Shopping
Habits, Experts Say
March 12, 2018 at 5:59 pm
NEWARK, N.J. (CBSNewYork) — New preferential pricing could
take off at some major airlines, as providers are looking at ways to charge
passengers based on their online shopping habits.
People who spend more may find themselves paying higher
prices. Senate Minority Leader Chuck Schumer (D-NY) is preemptively asking the
federal government to protect passengers from technology that uses personal
information such as income to affect pricing.
Schumer says under the policy, two flyers sitting next to
each other could be given two different prices based on their internet browsing
history, online purchasing, or even income level.
Travel expert Peter Trabucco says the idea mixes big
brother with big business.
“This is a dangerous precedent to do something like
this,” he told CBS2’s Meg Baker. “You have to be careful how to go about doing
that.”
Aviation expert Brian Summers says most airlines have
antiquated computer systems that may delay the preferential pricing from
happening any time soon.
But airlines could target certain types of travelers.
“They do want to get to a world where if they know you’re
a business traveler and you’re travelling to Europe and have to get there
immediately, they may show you the most expensive ticket first,” he said.
So what can you do if you’re planning a trip? Experts say
you should make sure to get rid of your cookies or use someone else’s computer
if you’ve made multiple online searches.
The proposed technology tracks customers’ IP addresses
and predicts how much they’re willing to spend on a ticket. It may violate
consumer protection laws, but there’s no evidence airlines are using the
information yet.
The Federal Trade Commission does not comment on the
business practices of a specific company or a specific industry, with narrow
exceptions.
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