Ever wondered how airlines price tickets? I’m sure you have if you’ve ever spent time online looking for low fares as prices seem to change daily, hourly or even by the minute with no rhyme or reason. In the above five-minute video, CNBC does a good job explaining the dynamic pricing strategy employed the major airlines, referred to as airline revenue management (ARM). The video shows that if you’re flying on a popular business route like London-to-Hong Kong, then you want to buy your tickets well in advance. But if you’re flying on a leisure route like London-to-Bali, then you want to keep pricing out your fare until you get something low (that’s why I use fare alerts, as I explain in this post on finding cheap airfares). For more tips and insight, check out the video.

How airlines price tickets

 

Johnny Jet
Advertisement

Chase Sapphire Preferred® Card

recommended-cart-post-image
APPLY NOW
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.

The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.

Leave a Reply

Required fields are marked *