Airfare AI Debates, Hotel EV Demand and Southwest’s Baggage Bonanzas
Photo Credit: A luggage conveyor belt in an airport. Adobe Stock
Skift Take
In the headphones today: American Air makes an AI pricing promise, Hilton says EV charging is an edge, and Southwest’s billion dollar bonus.
Skift Daily Briefing Podcast
Listen to the day’s top travel stories in under four minutes every weekday.Good morning from Skift. It’s Friday, July 25. Here’s what you need to know about the business of travel today.
With growing backlash over the use of artificial intelligence to set airfares, American Airlines CEO Robert Isom said the airline wouldn’t use the technology in a way that could erode consumer trust, writes Airlines Reporter Meghna Maharishi.
Maharishi notes Delta Air Lines has received criticism from lawmakers and consumer advocates after saying it plans to use AI to price up to 20% of domestic airfares by the end of the year.
The issue is whether different passengers would receive different quotes based on their personal information – and Isom said American wouldn’t do it.
He also said American was experimenting with AI to improve its operations, including using a tool called “Heat” to help the carrier operate during weather disruptions.
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Next, electric vehicle charging stations have become Hilton’s top booking driver, writes Climate Reporter Darin Graham.
Hilton’s Global Head of Sustainability Jean Garris Hand told Skift that travelers searching for EV charging on the company’s booking platform are more likely to complete a reservation than those searching for amenities such as pools and free breakfast. The company has EV charging stations in more than 1,8000 of its hotels worldwide.
Garris Hand added that demand for EV charging is surging, especially in the UK.
Finally, Southwest Airlines says it hasn’t experienced any negative impact from introducing baggage fees in May, writes Maharishi.
CEO Bob Jordan said Southwest is checking more bags per passenger than expected, with the carrier projecting baggage fees to contribute more than $350 million in earnings before interest and taxes this year. That figure would’ve approached $1 billion had the baggage fees been in place for all of 2025.
In addition, Chief Operating Officer Andrew Watterson said Southwest saw no change to its web traffic after introducing the baggage fees in May.
