Dynamic pricing in airline industry: why flight fares constantly change

Looking for ways to maximize their profits, airlines can change prices for the same service class on the same flight multiple times within several days. To make this happen, airline revenue managers need to take hundreds of different factors into consideration. But there is a comprehensive strategy, serving as a foundation to this kind of dynamic pricing.

Watch our new video to find out:
• What are the different types of traveler behavior and how airlines cater to it?
• What are fare buckets?
• How supply and demand affect pricing?
• Can the price of an airline ticket drop closer to the departure date?
• What will be the future of flight tickets pricing?

Music in video:

#dynamicpricing #travelbusiness #travel #flightpricing

[AltexSoft]

Hey, guys.
Unfortunately, we've misspelled the word "leisure" in the video. Let's face it, we're embarrassed. But we still hope that you'll enjoy the other aspects of this explainer and learn something new. Thank you!

[kapilpavaskar]

Your videos are absolutely informative and easy to understand. Appreciate the efforts you guys have put into making these videos.

[ashishpolinati]

Guys very well made video. I visit this video lot of times to understand about dynamic pricing. Also your other videos on airline sector are quite rich in content and very well explained. Thanks a lot

[dedengdedeng]

THANK YOU FOR THIS VIDEO. THE SIMPLEST YET 100% INFORMATIVE.

[mohammedma]

I have seen many videos on this topic and this was the best one to explain it 👍

[svetoslavspasov]

I appreciate how informative the video is. As for the projections for the future, they already have that info. That means you get different prices depending on the IP of your work computer and home network. But the Ethicallity of this model certainly is questionable, since airliners can tap into the individual profile of each customer with data of purchasing habbits and capabilities, they can sell the second to last over-priced ticket to a small business owner, but say it's fully booked to a family man.

[dram]

Very well informed, great work guys!!

[cristinar]

Great presentation. Just need to turn on your spell check - Leasure should be Leisure.

[charlesnicholson]

Awesome video! Very easily explained. Thank you!

[tygodankers]

Is it also true that the location affects your price, heard that one somewhere?
And that a VPN can save you some bucks.

[RahmatullahRon]

great video and so nicely explained. can I use this video (with credits) because i work in a Travel agency and maintaining a travel group where people mostly complains about the changing fares of airlines.

[classclown]

The fare bucket make sense to me. Wow! 😲

[Davi]

Do you think this new NDC consumer information may lead to discrimination? Because let's face it - who wants to pay more for the same service. Holding all things constant - the only real equalizer it seems like is quality of seat + urgency of purchase. But if i'm flagged as a "business traveler", will I always just see a hirer fare even if the quality/urgency are the same.

[rajgaikwad]

if i want to built a ML model to predict prices where can i get the data?

[alanm]

Very interesting video. I just wish they spelled leisure correctly.

[thebishalpaul]

Do they give salary to the aircraft workers in dynamic system no right then why so dynamic price. I think it should be declared as illegal for looting customers.

[dlc]

What bizarre music, lol. With the random Tigger tail *BOING*s

[HasinthaWeragala]

please remove the damned background music, it is so annoying