Airfare price is the price paid for a route or combination of legs that make up a ticket.
There are various things that affect pricing such as the supply of aircraft, demand from passengers, competitor pricing, even the weather forecast and fleet maintenance schedule can impact published pricing.
In addition, airlines often create price discrimination between its most- and least-flexible fares creating a complex web of pricing for each flight in its schedule. Airlines use complex revenue management systems to revise prices on a daily and often hourly basis.
Currently, data shows that given unpredictable supply and demand, prices are fluctuating more than ever creating an inefficient market for travel. Taxes and fees notwithstanding, net prices for air travel are likely to continue to be less predictable over the next year at least.
Read our most recent travel industry blogs
The 4 Travel Tracking Tools You NEED to Be Using
The world of travel is constantly changing. From fluctuating prices to changing travel restrictions, travel tracking has become crucial. It is not enough to [...]
Everyone’s Talking About: The Rebound of Business Travel
After a dramatic drop in travel during the pandemic, corporate business travel in 2021 has finally started to show a rebound. The latest poll [...]
Everything You Need To Know About Public vs. Private Airfares
Business travelers and those who coordinate business travel need to be aware of the various types of flight pricing they will come across. Understanding [...]