Jennifer GaengSep 15, 2025 5 min read

AI Is Hiking Up Travel Costs, While Consumers Lose Out

Airlines are using AI to maximize profits, raising ticket prices based on demand patterns and customer behavior.
Airlines are using AI to maximize profits, raising ticket prices based on demand patterns and customer behavior. | Adobe Stock

Your rental car just cost you $500 extra for a scratch you didn't cause. Your hotel charged $250 for vaping you didn't do. Your flight price jumped $200 while you were checking dates. Welcome to travel's AI nightmare, where algorithms pick your pocket and you're guilty until proven innocent.

Travel companies are deploying artificial intelligence that acts less like a helpful assistant and more like a digital shakedown artist. These systems operate in the shadows, automatically billing you for phantom damages and jacking up prices based on your browsing history.

AI Scanners, Smoke Sensors, and Price Manipulators

Hertz is using AI scanners from a company called UVeye that can allegedly detect "paint inconsistencies" at the millimeter level. Translation: that dirt smudge or lighting shadow just became a $300 damage claim. The system flags it, bills your card automatically, and good luck proving otherwise.

"We are excited to partner with UVeye to bring efficiency and greater accuracy," Hertz EVP Mike Moore said in April. Efficiency at extracting money from customers, maybe. These scanners can't reliably distinguish between existing wear, dirt, or actual new damage. But they'll charge you anyway.

Legal consultant Nicola Cain points out the backwards logic:

Human oversight needs to be built into the process.

Instead, humans only get involved after you complain. The robot's judgment stands unless you fight it.

Hotels are worse. They're installing sensor networks that monitor vapor particles, noise levels, occupancy counts, even your WiFi usage patterns. Ruth Cruz, who runs a tech website in San Jose, got slapped with a $250 smoking fee from a false positive. She beat it by researching the system's technical limitations online and throwing their own documentation back at them.

AI-powered pricing tools are helping hotels adjust rates in real time, often pushing room costs higher for travelers.
AI-powered pricing tools are helping hotels adjust rates in real time, often pushing room costs higher for travelers. | Adobe Stock

Airlines have been perfecting AI price manipulation for years, but now it's on steroids. Thomas O'Shaughnessy from St. Louis watched prices jump dramatically just from researching flights. "The price increases weren't random," he said. The AI knows you're interested and squeezes accordingly.

Raymond Yorke from Redpoint Travel Protection nails it: "Technology can make travelers feel powerless." That's not a bug - it's the feature. These companies want you overwhelmed and confused so you'll just pay up.

Frank Harrison from World Travel Protection explains the game: "These systems prioritize speed and automation over accuracy. They're designed to extract maximum revenue while hoping customers won't challenge algorithmic decisions."

How Do You Fight Back?

For rental cars, become obsessive. Video everything before you drive off. Every angle, every existing scratch, every speck of dirt. Email it to yourself immediately for timestamp proof. Focus on bumpers, wheel wells, and roofs - AI's favorite false-positive zones. Too many dings on the car they're offering? Demand a different one.

For flights, go full paranoid. Use incognito mode. Clear cookies between searches. Use a VPN to appear like you're browsing from different cities. Joey Martin, an AI expert, says he's seen "$200 or more" price differences for the same flight just by changing apparent location. Search on multiple devices - the AI shows different prices to phones versus computers, logged-in members versus anonymous browsers.

In hotels, don't touch anything. Open windows if possible. Keep the room ventilated. Don't even look at the minibar sideways. When that surprise charge hits, demand the original AI scan data and sensor logs. Most companies can't actually provide evidence that holds up.

Christopher Elliott, who's been covering this, says we're at the start of an AI arms race. Travel companies use machine learning to maximize revenue while travelers scramble to defend themselves. "Assume AI is tracking your every move," he warns, "because it probably is."

Designed To Take Your Money

The really infuriating part? These aren't bugs or errors. This is the system working exactly as designed. Flag everything as damage, charge first, make customers prove innocence later. Jack up prices for interested buyers. Monitor guests like criminals. It's automated exploitation with plausible deniability.

From booking chats to pricing algorithms, AI is reshaping the travel industry—and making trips more expensive.
From booking chats to pricing algorithms, AI is reshaping the travel industry—and making trips more expensive. | Adobe Stock

Travel companies will claim it's about "efficiency" and "accuracy” when it's about extracting every possible dollar while reducing human employees who might show judgment or mercy. The AI doesn't care if that scratch was already there. It doesn't care if you're checking prices for your honeymoon. It just sees revenue opportunities.

The Bottom Line

The companies banking on you being too tired, too confused, or too intimidated to fight their robots are usually right. Most people just pay the fee and grumble. That's pure profit from thin air, courtesy of artificial intelligence.

Your AI anxiety is completely justified. These systems are designed to take your money, and they're getting better at it every day. Document everything, trust nothing, and be ready to fight every questionable charge.

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