In the wake of recent unrest in Srinagar, a new report by Sciative Solutions, a leader in AI-driven pricing optimisation, has unveiled a sharp contrast in how the hospitality and airline sectors have reacted through pricing — spotlighting the growing need for ethical checks in AI algorithms.

The report found that hotel prices in the Srinagar region dropped by an average of 22%, with some properties slashing rates by up to 46% to attract bookings amidst plunging demand. Meanwhile, outbound airfares from Srinagar soared by 46%, with some routes, such as Srinagar to Kolkata, witnessing a staggering 213% increase, jumping from ₹7,666 to ₹24,000.

While inbound flights to Srinagar saw prices fall by up to 53%, the imbalance created a fragmented environment for tourism — one that significantly impacted local occupancy rates and raised pressing questions about pricing ethics in times of uncertainty. Hotel occupancy reportedly fell by 30%, as both domestic and international tourists steered clear of the conflict-hit region.

“Dynamic pricing can be a powerful tool, but during times of crisis, the human element must be prioritized,” said Ms. Vijeta Soni, Co-founder & CEO of Sciative Solutions. “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.”

Adding to the conversation, Dr. Anshu Jalora, Founder & Managing Director, noted,

“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.”

The report underscores the urgent need for responsible AI frameworks, especially in sectors as sensitive as travel and hospitality. Without ethical constraints, algorithm-driven systems risk deepening inequalities or exploiting crises for gain. Sciative’s call to action: businesses must balance smart pricing with social responsibility, ensuring fair access and compassion in emergency situations.

About Sciative Solutions:

Sciative Solutions is an innovation-focused AI firm dedicated to transforming pricing strategies for businesses across sectors. From retail to hospitality, the company delivers smarter, more profitable pricing outcomes while promoting ethical practices in artificial intelligence. With a commitment to responsible innovation, Sciative helps clients unlock new growth opportunities in today’s dynamic marketplace.