I just returned from the annual PhocusWright conference where the top dogs in the Internet travel world congregate to discuss trends and network. One of the demonstrations from Sociomantics made my blood run cold.
As a member of the Advisory Committee for Aviation Consumer Protections, I plan on bringing this personalization issue up in a future meeting. In the meantime, I made sure that those who are involved with personalization has a chance to speak with the folk at Sociamantics. It begs a privacy solution as well.
Basically, the system allows for realtime personalization in the background where consumers can’t even imagine what is going on. If this system comes to airline tickets, it will destroy the ability to comparison shop for airfares. Plus, as airlines begin to disclose ancillary fee data, it will make comparisons even more difficult.
Recently, the International Air Transport Association (IATA) has asked DOT to approve a resolution that they concocted at a recent meeting of the world’s airlines. It is one of the most dramatic examples of the airlines’ view of personalization.
Airlines see personalization or customization of air travel costs as a system where they collect data about individuals and then create a price that is “personalized” for the consumer. That personalization will take into account personal information gleaned from frequent flier programs, prior purchases, credit card records from airline affiliated cards and data purchased from data brokers.
Consumers and travel agents see “personalization” or “customized pricing” as something that consumers create through the ability to purchase services the customer wants from a menu of ancillary services provided by the airlines.
In one system, the airlines through a deus ex machina fiat based on collected data. Airlines would do the “personalization.”
The other system would allow the customer to “customized” the flight by picking and choosing what services the passenger desires.
The airlines have the shoe on the wrong foot. Plus, airlines still refuse to disclose ancillary fees at the time of booking on any site, nor do they allow travel agents (who sell more than half of all airline tickets) to display these ancillary fees or sell them.
Plus, airlines have not addressed the massive privacy liabilities that could come into play with such a system. Consumers would need a way to guarantee that the data used to “personalize” airfares was accurate.
Taking data from realtime shopping for airfares is one thing and is immediate and leaves a trail that can be followed in the future. But, combining that data with erroneous data collected from third-party sources may corrupt this entire behind-the-scenes marketing scheme.
Consumers beware. Don’t let the airlines have free rein over personalization. You should be able to customize airfares yourself and be allowed to compare pricing across airlines.
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
