Italy: Closed consultation on report in AGCM investigation into the use of pricing algorithms in passenger air transport on domestic routes

On 15 January 2024, the Italian Competition Authority (AGCM) closed its consultation on the report concerning its investigation into the use of pricing algorithms in passenger air transport on national routes to and from Sicily and Sardinia. The investigation found that all airlines examined use dynamic pricing techniques in their revenue management systems. These systems rely primarily on "traditional" methodologies, such as static pricing matrices or grids, with predefined rules governing price adjustments. Airlines adopt varying approaches in implementing revenue management, leading to differences in system features, algorithms, inputs, and manual adjustments. In addition, the investigation found limited evidence of customer profiling or personalised pricing based on device type, browsing history, or location. Finally, the Authority found that airline ticket pricing and ancillary services lack transparency, making it difficult for consumers to compare prices across carriers or services.