The Algorithm Will Bill You Now: AI Creeps Into Travel Charges

With summer in full swing, travelers must beware that artificial intelligence (AI) systems could spot mishaps and misbehaviors that might otherwise go unnoticed by a human employee.

Car rental company Hertz, which also owns Dollar and Thrifty, is using AI to scan vehicles for damage, before and after a rental, automatically charging customers for what the system flags, according to The New York Times.

That’s what happened to a couple who rented from Hertz at the Hartsfield-Jackson Atlanta International Airport, the newspaper reported. A human employee cleared the car but the AI saw a dent and billed them $195 — $80 for the damage and $115 in fees.

Hertz, Dollar and Thrifty are also using the AI system at Newark Liberty International Airport, Charlotte Douglas International Airport, Phoenix Sky Harbor International Airport, Tampa International Airport and George Bush Intercontinental Airport in Houston.

European rental firm Sixt also has adopted similar practices, according to the Times. But Enterprise Mobility, which owns Enterprise, National and Alamo rental car companies, said it does not. Avis Budget Group, whose brands are Avis, Budget and Payless, has tested AI damage scanning but said the process today is led by humans.

A Hertz spokesperson told PYMNTS that digital vehicle inspections bring “much-needed precision, objectivity, and transparency to the process — giving our customers greater confidence that they won’t be charged for damage that didn’t occur during their rental, and a more efficient resolution process when damage does occur.”

Out of 500,000 vehicles scanned thus far, more than 97% showed no damage, according to Hertz. Ordinary wear and tear doesn’t count, the company said.

A Sixt spokesperson told PYMNTS that its customers “value transparency — and we take that seriously. That’s why we photograph each vehicle at select locations like airports before and after every rental and make these images available. As advanced technology helps us, decisions are always made by human experts. If potential damage is detected, it is carefully reviewed by our trained staff to ensure fair and customer-oriented outcomes.”

Click-ins, a company that uses AI and its own proprietary system to spot car damage, told PYMNTS that insurers, vehicle auction houses and other companies are using AI to more accurately assess vehicle damage, automate claims processing and avoid disputes.

Other companies offering similar AI-powered vehicle inspections include UVEye, which is Hertz’s partner, CCC Intelligent Solutions, Tractable, Solera and Snapsheet.

Hotels Tap Into Tech

Hotels are moving in a similar direction. Jordan Hollander, co-founder of research platform HotelTechReport.com, told CNBC that many hotels are already experimenting with artificial intelligence, though without automated billing.

Some hotels are using AI-powered sensors to detect air quality issues and impose smoking or vaping fines — but not always accurately, Hollander said. “Like someone using a hairdryer or aerosol spray — and guests get hit with $500 charges without ever lighting up.”

Hollander cautioned that hotels should tread carefully. “There’s a risk of backlash if hotels start billing guests based solely on what an algorithm says. The moment a guest gets a charge and can’t get a straight answer about why or how it was verified, you’re in dangerous territory,” he said.

Read more:

CarMax Expands Deployment of AI-Powered Vehicle Inspection Systems

Pershing Square CEO Bill Ackman Suggests Hertz-Uber Partnership on Autonomous Vehicles

Wyndham Hotels Touts AI Initiatives Amid Record Room Growth

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