How Airline Ticket Pricing Works

Рет қаралды 56,543

3 жыл бұрын

Many of us have spent time trying to work out the best strategies for buying airline tickets. Choosing off-peak dates, searching for flexible destinations, including stopovers, can all help. But to really understand ticket pricing, it pays to look at it from the airline’s point of view. How do they determine price, and what are the factors for changing the price?
The short answer is simply that airlines will mostly set prices to maximize revenues. But going deeper, how does this work? This video takes a look at these complex and largely hidden pricing strategies.
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Пікірлер: 53

@mann2520 3 жыл бұрын

If I book a flight I'll keep all this in mind thanks

@itstomatogear6806 3 жыл бұрын

Congratulations 🎉👏 of being the top comment 👍😁 (as of now 😈)

@wheel95 3 жыл бұрын

A follow up on price/fare errors is suitable!

@depthhistory 3 жыл бұрын

So there can be 300 people on the plane and each of them will have paid a different price. 300 people and 300 ticket prices.

@Jet-Pack 3 жыл бұрын

I also experienced that prices drop close towards holidays if you fly in the opposite direction of everyone else. I've seen last minute prices as low as 20€ on the same day for a December 31st flight going away from Berlin to Stuttgart. Usually this one-way trip costs around 70 to 100€ at normal times if booked couple weeks ahead.

@elevat1on 3 жыл бұрын

You didnt mention the use of VPN to get better prices (for the consumer). It can drastically change the price of a ticket by changing your location to another country.

@mirzaahmed6589 3 жыл бұрын

It's officially not legal and could get them into trouble.

@elevat1on 3 жыл бұрын

@@mirzaahmed6589 i dont know where you live, but using a VPN is perfectly legal in the western world

@mercybalones4670 3 жыл бұрын

@@elevat1on his/her name seems like arabic

@mercybalones4670 3 жыл бұрын

@@mirzaahmed6589 yes VPN is very safe though

@Romeojulietless 3 жыл бұрын

@@elevat1on Western World ? You mean Marvel Studios ?

@Think_Inc 3 жыл бұрын

I’m afraid budget airlines will call seats “extra” and remove that.😅

@jonathanchester5916 3 жыл бұрын

Great summary. My favorite fare is still the non-rev. Yes, you might not have a seat once in a while, but man, sitting in J class for zero is a nice feeling lol. You don't need an algorithm to explain that one 🤣

@Mikelesi7478 3 жыл бұрын

Nice and interesting video as usual. But I must point out that often these videos are heavy, because they tend to make lists too long and intricate.

@AviationCommercials 3 жыл бұрын

Thank you for using my Delta Airlines commercial video again!

@gooner72 3 жыл бұрын

Some great info and tips and a fantastic insight into how airline pricing works and how to beat it.

@chrislaryea41 3 жыл бұрын

Wendover getting some competition 🤓

@tanjiayang3857 3 жыл бұрын

Hey Long Haul Simple Flying you all can be lecturers. Anyways, I really hope you can make a video about Sustainable Fuel. Your vidoes are so good I stay up late to watch them Good Job!

@arnavgarg69 3 жыл бұрын

Thanks for the help

@stradivarioushardhiantz5179 3 жыл бұрын

Wow....such quality content🛫🤓👍🏻 Review more about airlines alliances & aircraft lessor companies.🛫😇

@ariadhikarayendra5111 3 жыл бұрын

My country have unfortunately price controls on airlines which the government said to "increase safety" and now, prices are quite high because of it

@rexandrandes4993 3 жыл бұрын

Please can you make a video on how airline do research to start a new destination flights

@TheAYESHAUZMA Жыл бұрын

kzfaq.info/get/bejne/m76mqcSfms-vppc.html

@sergej3665 3 жыл бұрын

Current less restrictive rules in terms of refund and change date caused by covid19 will result into higher ticket price set with availability tuning.

@paulrodger3115 3 жыл бұрын

There are rarely sales in business class, the z or I rock bottom is like 1 or 2 seats. Canada has no competition, yet try a US departure city and in US 34% exchange rate- no deal

@mann2520 3 жыл бұрын

I get an airline you get 50% stake in it both simple flyings

@BlackMoth1971 2 жыл бұрын

I was expecting you to include the airfare breakdown- to show how much goes to the actual fare, how much we pay for airport taxes and other surcharges.

@GoinManta 3 жыл бұрын

It was cheaper to fly thru Frankfurt to Berlin, than to just fly to Frankfurt.. $1200 vs $800.. Still can't figure that one out. Also flying Richmond, VA to Savannah, GA was far cheaper as a round trip than a one way.. Never understood that either.

@Turbomax4247 Жыл бұрын

How do you make such good thumbnails

@Jet-Pack 3 жыл бұрын

I'm sure that airlines also factor in their need to grow and expand influence. Dump the prices a bit today so more people fly with you instead of with another airline or by another form of transport. Maximizing the number of people and minimizing possible delays could lead to more loyal customers later on and thus strengthen the airline and bring in even more revenue than just grabbing what you can get now. So they're not just training the algorithms and AI to maximize revenue from all flights, they most likely factor in long term market trends.

@yanzhixiang6 2 жыл бұрын

Anyone pick up on United being shown on the screen when he talks about overbooking haha 9:20

@danielcraig243 Жыл бұрын

How is overbooking not illegal?

@tirupalvaka3208 3 жыл бұрын

Yes I flew Air India b787 at cast of 1lakh in Indian rupees

@stodakhizzle9049 Жыл бұрын

How much is that

@pushing2throttles 3 жыл бұрын

The algorithms...I wish they were transparent. Damn neural networks.

@amishagarwal3151 3 жыл бұрын

Can yoh do a collaboration with Wendover please?

@TBgunsandbutter 3 жыл бұрын

damn, i remember when i used to fly all over this planet for about $5 a pop, back in the 1920's 💸

@missj.4760 Жыл бұрын

Usually, companies try to maximize profits, not revenues. Are you sure it is not the same with airlines?

@VexifyGaming 3 жыл бұрын

Hello

@itstomatogear6806 3 жыл бұрын

HALLO

@torgeirbrandsnes1916 3 жыл бұрын

How to make a small fortune in the airline industry? You start with a big one!

@mirzaahmed6589 3 жыл бұрын

Old and overused joke, and not specific to airlines.

@Romeojulietless 3 жыл бұрын

One difficult decision after the pandemic will be differentiating between lack of demand due to peoples' reluctance to fly and the cost of tickets. Lets see how their Algorithms deals with that human factor .

@yohanmaduranga1 8 ай бұрын

Hai from 2 years later Now demand almost doubled

@cnordegren 3 жыл бұрын

My tactic is to eat beans and garlic and head over to the airline counter at the airport. I fart it out until I get a great price.

@sarwagyatripathi1788 3 жыл бұрын

😂😂 👍🏼

@engchoontan8483 Жыл бұрын

Push customers to other airlines(with access to cheaper fuel)(with bigger fleet of long haul planes) by pricing higher for destinations that are not connected by central land mass of asia. Push prices of long haul, extended range, planes higher by reducing economies of scale, concentrating on regional bigger but shorter range planes Let troublemaker countries suffer the costs of air travel. Let archipelago countries use inefficient revenue planes with no cargo deck for cargo bins. ..., 3hrs, 5hrs, optional minimal 8hrs flight duration (mach 0.78) XWB no XLR. Enhance regional, "outsource" long haul.

@walidmsr1772 3 жыл бұрын

Nothing learnt from this video… Book your ticket earlier and between midnight and 6 AM… you will find it cheaper. However, some companies sell their ticket more expensive than others… Some destinations with 1 stop +30-40% différence

@jacekpiterow900 2 жыл бұрын

Who know how can I help stop dynamic prices? Not avoid, just stop. This is such a huge scam and people doing nothing to stop that. Is there anywhere I can call donate money or anything to get this insanity stopped?

@sizzlemann 3 жыл бұрын

Sorry, but the algorithms for ticket pricing that airlines use are stupid!! Either that or the algorithms are written by idiots! Let me give you two examples. 1. I booked a one-way flight from New Orleans to Charlotte. They wanted $300 for the one way trip. But if I booked a trip from N.O. to Pittsburgh, it was $150 one way. The idiotic thing is that it went through Charlotte!!! Thank god for Skiplagged! I saved $150 and got off in Charlotte. 2. One way from SEA to LAX was $400, but the R/T was $250. I booked the R/T and never returned back to SEA. Just two examples of incompetent algorithms. Also, if these algorithms were so good, there would never be error fares!!!!

@mirzaahmed6589 3 жыл бұрын

Not everyone knows about Skiplagged, and airlines have gone after passengers who booked open-ended tickets and didn't fly a particular leg. The algorithms alter themselves as more data is available. No one writes the algorithm per se, if they did, they might as well just manually calculate the fares.

@dmendez12 3 жыл бұрын

There is a logic behind it, it’s not that algorithm is wrong. The airline would expect such routes to be sold at that price.