Dutch Regulator Calls for Greater Transparency in Algorithmic Pricing

The ACM’s research found substantial variation in airfares for seats on the same flight. A single flight had an average of 30 to 35 different prices during its sales period, while about one-third of tickets were sold for at least 40% more than the flight’s average ticket price, Cybernews reported, citing the regulator’s findings.

Ticket prices also followed shifting patterns as departure approached. According to the report, fares tended to increase sharply roughly two months before a flight and then gradually decline shortly before departure.

Such fluctuations can make it harder for travelers to determine when they should buy, potentially increasing the amount of time and effort required to find a favorable fare. The ACM said that burden may fall disproportionately on consumers who have less flexibility to wait for lower prices or fewer resources to assess when to make a purchase, according to Cybernews.

The regulator also identified a gap between how consumers believe airline pricing systems work and the factors actually used to determine fares.

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About 46% of consumers surveyed believed their previous searches could affect the ticket prices they were shown, while 25% thought the device they used could influence the price, Cybernews reported. The ACM said neither assumption was correct. Instead, algorithmic pricing can incorporate factors such as supply, demand and competitors’ prices.

Read more: Algorithmic Collusion or Algorithmic Confusion? Rethinking the Risks of AI Pricing for Companies and Policymakers

Automated pricing can also produce economic benefits. Companies can use algorithms to lower operating costs and manage available capacity more efficiently, potentially helping reduce prices, according to the Cybernews account of the regulator’s findings.

Still, the ACM argues that consumers need a clearer picture of the forces shaping the prices they encounter.

Martijn Snoep, chairman of the Dutch regulator, said the airline findings have broader significance because comparable pricing techniques are used elsewhere in the economy. He also said algorithmic pricing is likely to become more widespread as companies gain access to larger volumes of data and more advanced AI technology, according to Cybernews.

The issue raises questions beyond the price of an individual airline ticket. The regulator said greater transparency would enable public discussion about the consequences of automated pricing, the functioning of markets and the potential exploitation of consumer vulnerabilities.

The ACM’s findings remain in draft form and are subject to consultation. Businesses, consumer groups and other interested parties have until Nov. 9, 2026, to submit responses, according to Cybernews.