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A general question about airline ticket prices



 
 
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  #1  
Old July 18th, 2010, 10:48 PM posted to rec.travel.usa-canada
stonej
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Posts: 32
Default A general question about airline ticket prices

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?
  #2  
Old July 19th, 2010, 09:34 AM posted to rec.travel.usa-canada
tim....
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Posts: 398
Default A general question about airline ticket prices


"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




  #3  
Old July 19th, 2010, 12:22 PM posted to rec.travel.usa-canada
stonej
external usenet poster
 
Posts: 32
Default A general question about airline ticket prices

Thanks, I figured it was probably something like that going on, I
really wasen't planning on
taking that particular flight but just wondered what kind of game they
were playing
overall.
  #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.


  #5  
Old July 20th, 2010, 09:23 PM posted to rec.travel.usa-canada
Dave Smith
external usenet poster
 
Posts: 654
Default A general question about airline ticket prices

- Bobb - wrote:

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.




Back in 2002 we were invited to a wedding in Colorado. My wife called
about plane tickets from Buffalo to Denver departing Sept.12 and was
told they would cost $415. The next morning I talked to my boss to book
the time off and called her to tell her to get the tickets. They had
jumped to $570, and she was told that prices vary from day to day. Nuts
to that, we would keep calling back and if the prices fell we would get
them, if not, we wouldn't bother going. After a few weeks of frequent
calls we thought about leaving Sept.11, the first anniversary of the
9/11 attacks. .... $415.
  #6  
Old July 23rd, 2010, 01:51 AM posted to rec.travel.usa-canada
2travelwithme
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Posts: 13
Default A general question about airline ticket prices

On Jul 18, 4:48*pm, stonej wrote:
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?


Try my site.. It will save you some money:

Book Here and Save : http://2travelwithme.rovia.com/rovia/home

Save More When you become a member: http://www.2travelwithme.worldventures.biz/

Michael Mccrary 817-692-6467
 




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