Two major low-cost airlines in the United States, Frontier Airlines and Spirit Airlines, are facing scrutiny from US Senators over their use of passenger data in determining ticket prices and fees. The issue came to light following a Senate hearing where executives from both airlines did not adequately address questions about their pricing practices.
Senators Maggie Hassan, Josh Hawley, and Richard Blumenthal have written to Edward M. Christie III of Spirit Airlines and Barry L. Biffle of Frontier Airlines. They expressed concerns that passengers might be charged different seat fees on the same flight despite booking under the same class or fare. The senators highlighted a lack of transparency regarding whether customer information is used to manipulate seat pricing.
“Your lack of transparency raises concerns that your airlines use customers’ personal information to manipulate seat pricing,” the letter stated. It also questioned the use of non-personally identifiable data such as ZIP codes, browser cookies, location information, or search history in influencing pricing through contracts with software company Navitaire.
The letter further criticized Frontier Airlines for failing to clarify why certain personal information is required before revealing seat fees on its website. Senator Josh Hawley questioned why passengers must provide age, geographic location, and gender before seeing seat costs.
Executives from both airlines declined to comment on whether they would cease requiring personal information before disclosing seat prices. If these practices are confirmed, it could contribute to rising ticket prices among budget carriers in the US.
At a December 4 hearing, Senator Blumenthal voiced bipartisan frustration with current airline industry practices: “There is bipartisan [both Democrat and Republican] frustration and even fury about the current practices…They simply won’t fly anymore because they conflict with the reality of what our constituents see in their everyday lives.”
Spirit and Frontier have until February 24 to respond to five key questions posed by the Senate:
1. Will they commit not to require personal information before providing seat and ticket prices?
2. Why do they require personal information before providing fares?
3. What customer information is used in pricing algorithms?
4. Do they utilize Navitaire for data collection?
5. What safeguards prevent discrimination if passenger data influences ticket prices?
While collecting personal data is common across various online platforms for tailored advertising purposes, passengers are advised to remain cautious when asked for personal details during flight bookings.
