Italy’s Competition Authority (AGCM) Examines Airline Pricing AI Algorithms in Domestic Routes

The Italian Competition Authority (AGCM) has examined airlines’ dynamic pricing methods on domestic routes, highlighting transparency concerns. The findings reveal varied algorithmic approaches, limited customer profiling, and opaque practices that complicate price comparisons for passengers.

Italy’s Competition Authority (AGCM) Examines Airline Pricing AI Algorithms in Domestic Routes

Italian competition regulators scrutinise airline pricing algorithms for transparency and consumer fairness

The Italian Competition Authority (AGCM) recently closed a consultation on its detailed investigation into the use of pricing algorithms by airlines operating domestic routes to and from Sicily and Sardinia.

The findings reveal that all airlines examined utilise dynamic pricing strategies within their revenue management systems. These systems largely rely on established methodologies such as static pricing matrices or grids.

Predefined rules within these frameworks dictate price adjustments, creating an intricate system where fares respond to demand, timing, and availability.

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