If you are a frequent traveler, you must have encountered a situation when the tickets you saw yesterday were more expensive the next day. These things cannot but disappoint many of us as we do not want to pay more. However, the issue with the airline pricing is that it is not that straightforward and simple. None of the airline companies would like to openly clarify how they price their tickets as there is a complex algorithm balancing supply and demand behind.

Still, there are a few things to know which will help understand how pricing on this highly fluctuating market happens. Since we all are potential customers, it is important to understand these issues to make the most beneficial decisions. These issues we are discussing in more detail below, so stay tuned!

Reasons Behind Tickets Price Fluctuations

As mentioned above, each airline has its own pricing algorithm which is most certainly built with complex models and assumptions. However, there are a few important issues which you may not have heard of when it comes to changes in prices. And these include:

  • change of seats available for a certain fare: sometimes the cheapest option that is shown is actually the cheapest one. Once it is sold out, we will see the next cheapest option which would definitely be a bit more expensive as the sold-out one. Given that airlines have a greater number of seats’ classes they adjust prices to each of these and we may simply be not aware of it;
  • supply and demand fluctuations: given that there is a certain category of people always looking for the cheapest prices, airlines take this into consideration when announcing the costs of flights well in advance. Airlines usually tend to start the prices for these seats relatively high and then adjust them according to market response;
  • adjustments to the plane capacity: for airlines it is of utmost importance that the conducted flight is not a deficit one, meaning that they do not get into the red. Therefore, if a place is nearly full and demand is great, the last sold tickets will be very expensive as the majority of people simply do not have other options. When demand is not that great, prices may fall.

All in all, the best advice to make good tickets decisions would be to book them in advance. Judging from what we know on the pricing methodologies of airlines, it is always better to look at things in advance as airlines have not started increasing prices yet.

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