Why Do Airline Tickets Change Price Often?
Most people have experienced the frustration of searching for a flight ticket and seeing its price change several times over a short period of time. We often wonder why this happens and why airfare seems so unpredictable. In this article, we will discuss the primary reasons why airline tickets change price often.
Supply and Demand
One of the most significant factors that affect airline ticket prices is supply and demand. In the simplest terms, if there is high demand for a particular flight or route from many customers, the airline will increase ticket prices to maximize profits while still providing enough seats to meet demand. On the other hand, if the demand for that particular route or flight is low, airlines will lower ticket prices to encourage more people to book flights on that route or flight.
The airline industry is cyclical and responds to changes in demand, which are affected by several variables. During peak travel times, such as holidays or summertime, airline tickets can be much more expensive than during off-peak seasons. This is because there are many more passengers competing for a limited number of seats during peak travel time, leading to the high demand, thus higher ticket prices.
Seasonal Changes
In some cases, airline ticket prices can fluctuate based on seasonal changes. For example, the airlines operating in countries where it is winter, and incredibly snowy prices are generally much lower than in the summer months. This is because fewer people travel during the cold winter months, and the airlines, therefore, reduce prices to fill empty seats.
Competition
The airline industry is incredibly competitive, and airlines are continuously trying to attract new customers, maximize revenues and make profits. When two airlines operate the same route or destination and compete for customers, the prices of tickets become more competitive. In this scenario, to attract more customers, airlines will try to offer ticket prices that are lower or more attractive than their competitor. This is where price wars between airlines can occur, with each airline trying to undercut the other with lower prices.
Oil Prices
The price of oil affects the cost of running an airline. When oil prices increase or decrease, airlines must adjust their operational costs to reflect this. Fuel costs make up a significant portion of an airline’s operational costs. Therefore, airlines must adjust ticket prices to reflect changes in the cost of fuel. When the cost of oil increases, airlines will increase ticket prices to cover the additional costs.
Booking Timing
The timing of booking a flight can also affect the price of an airline ticket. The earlier you book a flight, the less expensive it is likely going to be. When customers book their flight just a few days before departure or during peak travel times, the price of tickets increases, and it becomes more expensive compared to early bookings.
The Final Verdict
In conclusion, it is clear that several factors can cause airline tickets to change price often. Some factors can be predicted, and others are beyond control, such as oil prices. Passengers can find it frustrating that they can’t find a stable price for the desired destination, but airlines must set prices in response to supply and demand, operational costs, and competition. So next time you want to book a flight, try to book it in advance, before the peak travel time, and compare prices of different airlines before making a decision.