New Delhi, May 02, 2025: Sciative Solutions, a leader in AI-powered pricing optimization, has released a comprehensive new report revealing strikingly divergent pricing trends in the hotel and airline sectors following the recent unrest in Srinagar. The report shows a 22% drop in hotel prices and a 46% surge in outbound airfares, illustrating the ethical dilemmas faced by both industries as they navigate dynamic pricing in times of crisis.
Key Findings:
- Hotel Price Decline: Hotel room rates in the Srinagar region fell by an average of 22% during the week following the crisis, with some properties cutting prices as much as 46% to encourage bookings amid a significant downturn in demand.
- Airfare Spike: Outbound airfares from Srinagar experienced a dramatic 46% price increase. For instance, the Srinagar–Kolkata route saw an alarming 213% increase, with fares surging from ₹7,666 to ₹24,000 during the unrest. In contrast, inbound fares to Srinagar plummeted by up to 53% as tourism demand sharply dropped.
- Impact on Local Tourism: The report highlights the dual impact on Srinagar’s tourism sector—hotel occupancy rates dropped by 30% while airlines capitalized on the crisis, driving up prices for travelers seeking to leave. This has led to a fragmented tourism environment, making it difficult for travelers to navigate the region.
- Ethical Considerations in Dynamic Pricing: Both sectors demonstrate the challenges of relying on AI-based pricing algorithms that react quickly to changes in demand but often fail to account for the broader social and economic consequences of pricing decisions during crises.
Ms. Vijeta Soni, Co-founder & CEO of Sciative Solutions, commented, “Dynamic pricing can be a powerful tool, but during times of crisis, the human element must be prioritized. Our analysis shows how pricing algorithms, without ethical safeguards, can exacerbate vulnerabilities. Businesses must not allow profitability to overshadow the human impact of their pricing decisions. It is critical to introduce frameworks for responsible AI that focus on human welfare during emergencies.”
Dr. Anshu Jalora, Founder & Managing Director of Sciative Solutions, added, “The stark contrast between hotel and airline pricing during the unrest underscores the complexities of dynamic pricing systems. While technology enables efficiency and profitability, we must be mindful that these algorithms reflect the values we program into them. We are committed to developing AI solutions that combine business success with ethical decision-making, ensuring that pricing models prioritize customer experience and social responsibility, especially in times of uncertainty.”
The report serves as a call for industries to rethink their approach to dynamic pricing, urging a balance between profitability and responsibility, particularly in the face of unforeseen events.
Corporate Comm India (CCI Newswire)
