Interesting Airfare Article

[patekatek]

I sometimes see comments on this forum regarding airfares, best time to travel, etc. The following link is to an interview with an unnamed airline executive who provided some insight into the pricing of air travel pricing:

http://news.yahoo.com/confessions-airline-revenue-manager-094500117.html

[craigt3365]

Very interesting article. Finding good fares is a tough job!!!

[roamer]

Very interesting article. Finding good fares is a tough job!!!

Indeed. And this part should be pinned. Might stop the frequent posts "why are tickets more expensive this week/month/year etc."

" What is your role as a revenue manager?

Each airline has a complex computer system based on algorithms that can maximize the profit on each flight based on the types of fares offered on that specific flight. On one flight, there could be as many as two dozen different fares based on different factors such as advance purchase or how many days you stay at the destination. The computer knows that, by releasing (for example) 5 seats at a very low price, 10 seats at a slightly higher price and 20 seats at a slightly higher price, it can maximize revenue as the flight fills up.

On a full flight, we no longer want to offer that el-cheapo fare because it is based on supply and demand. The computer adjusts fares all the way up until the departure time, but as a revenue manager, I can go in and adjust things based on information that the computer may not know. For example, are there specific events taking place at a destination? Are there certain conditions at the departure airport that will allow more than the desired amount of seats to go empty such as weather?"

Well I guess it wouldn't get read anyways but it's a good explanation.

[DogNo1]

For me, the best practice has been to buy very early hoping to snatch one of the low fares before the plane fills up. I always want the best flying times so there's not much chance of a cheap seat opening up at the last minute. One thing that's not mentioned is that if the airline knows who you are, it may jack up the price. One day, I tried many times to buy a ticket at the price quoted on KAYAK only to have the airline increase the price a lot once I had signed in with my FF number. Finally, I figured out a way to purchase the ticket before I entered my FF number and got it at the KAYAK price.

[craigt3365]

For me, the best practice has been to buy very early hoping to snatch one of the low fares before the plane fills up. I always want the best flying times so there's not much chance of a cheap seat opening up at the last minute. One thing that's not mentioned is that if the airline knows who you are, it may jack up the price. One day, I tried many times to buy a ticket at the price quoted on KAYAK only to have the airline increase the price a lot once I had signed in with my FF number. Finally, I figured out a way to purchase the ticket before I entered my FF number and got it at the KAYAK price.

Clearing your cookies frequently also makes a big difference.

[craigt3365]

I just pinned this article. Thanks to the OP!