How Do Airlines Decide When to Lower Prices?
Airline ticket price fluctuations are often difficult to predict, according to "Budget Travel Magazine." While some changes can be attributed to marketing -- hoping to entice consumers into flying -- there are other factors affecting whether ticket prices go down.
Other People Are Reading
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Fuel Costs
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When the price of oil goes down, so can the cost of flying, according to" The Washington Post." Although not all airlines lower ticket prices based on fuel costs, airlines have more room to lower prices and still be profitable when the cost of oil drops, giving some an incentive to pass the savings along to travelers.
Travel Time
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Airlines lower prices for those dates when air travel is not as popular. For example, rates are going to rise over the holidays and in the summer, when airline travel is expected to go up. However, airlines can lower ticket prices when travel is not expected to be as high -- such as winter months -- or offer lower fares to popular spots in their "off" season. ABC News also reported that airline ticket prices are usually lowered just after midnight on Tuesdays, making Wednesday the best day of the week to look for lowered prices.
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Competition
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When a lower-priced airline moves into town, or another decides to lower prices, the rest usually follow. Sticking out as the most expensive options to travelers, especially on a repetitive basis, can hurt an airline's business.
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References
- "The Washington Post": Airlines Find Fuel Prices Tough to Swallow: Keith L. Alexander: June 3, 2004
- "The Bismark Tribune": Airfare roulette: Complicated factors affect ticket prices: Christoper Bjorke: May 16, 2010
- "The Washington Post": Downturn Puts Air Travelers on Cloud Nine
- ABC News: The Best Time to Buy Airline Tickets
Resources
- Photo Credit airplane image by Clarence Alford from Fotolia.com
