The pricing of airline tickets, a complex science?

Sometimes we wonder how the flight fare for the same destination or if the same path varies considerably. There is a reason that explains this. What is the secret of fixing airline prices ? The airlines are getting into a challenge on the tariffs for flights.

Several parameters come into play in this context. pricers and yield managers (fashionable trades) have leading roles in the management tariff classes. But they did not manage to juggle the various price differences if passengers were not present.

That said, the first parameter conditioning the pricing is customer behavior. The flight prices are set a year before takeoff. The airlines then expect at best to have the upper hand on the competition and offer the best price salable. The first study focuses on the attitude of the customer according to the seasons. On holiday period, passengers are of course many, but the residence time is longer. While in normal times, business class passengers jostle. The length of stay has a great influence on the price.

Customers case, under pressure from business appointments, are willing to pay a lot to get them. Thus, for the business class tariff through 450 € to 1300 € could climb to go back, or even more. Also, the passenger profile reads easily according to the data registered when booking. Only with the date and time of departure, combined with the length of stay, the airline class passenger in the correct type of flight, and thus determines the appropriate rate.

The time of booking is one of the parameters for setting the price of airline tickets. The more the customer reserve in advance, the more he will get the lowest fare. That said, a hurried passenger, who reserve at the last minute will suffer a considerable price increase. This is the same system adopted in the management of ticket prices that define these criteria.

There is also the fill rate of the planes that play. The more room, more customers have the chance to get good prices. It is then quite difficult to have a lowest rate in almost complete aircraft.

But another point is also considered for the establishment of these rates. This is the comparison of the current flight with the old, always referring to the number of passengers. If lower, the company provides promotional price plan. This will raise the passenger load factor, and restore normal price or even more.

Some even say that the airlines or flights comparators locate the IP addresses of Internet users in imminent booking procedures, and increase their real time rates, just for them, as and as their search takes. ..