View Single Post
  #4  
Old July 19th, 2010, 01:41 PM posted to rec.travel.usa-canada
- Bobb -[_2_]
external usenet poster
 
Posts: 550
Default A general question about airline ticket prices


"tim...." wrote in message
...

"stonej" wrote in message
...
I have noticed on an airline web site that flights to a certain
location for Jan. 1
have increased two times in the past two weeks. Does this mean that
demand is high for that flight and the airline is trying to squeeze
every bit
of profit they can by raising the price until the last seat is sold or
could
something else be going on?


It's called yield management.

In its simplest form:.

The first e.g. 50 seats on the plane sell for one price.

The next 50 seats sell for a higher price.

The next 50 seats sell for an even higher price

The last 50 seats on the plane sell for an extortionate price.

If the price has gone up twice it means that 100 seats have now been sold
and you are the guy whose going to have to pay the even higher price
because you waited too long to buy.

tim

Funny story about that ( now it's funny)
Every year 5 of us go fishing in FLA Keys. We watch for sales. A few years
ago I was checking and -bingo- FLA tickets on sale for $159 r/t. I send
emails to confirm - "these dates OK ?".
Within 15 minutes they all replied - "good for me, let's do it". I go to buy
it and it's gonna be $229 ??!! I send another email about the price jump:
they already bought and they each got $159 price. SO I did the homework and
THEY got the last of the cheap seats on that flight and MY ticket price
jumped up! Since they each saved $70+tax , I got free meals for the
weekend.
The lesson : when you see the price - don't wait.